Following a report from journalist Pablo Torre, the NBA announced on Wednesday that it would look into whether a $ 28 million endorsement deal between Kawhi Leonard and a California-based sustainability services company allowed the Los Angeles Clippers to break league salary cap regulations.
The Clippers vehemently opposed any violations of the league’s investigation and expressed their gratitude.
The investigation will focus on connections between Leonard, the Clippers, and Aspiration Fund Adviser, LLC, which filed for bankruptcy earlier this year. At the time, it named several creditors, including the Clippers (who were owed about $30 million) and KL2 Aspire LLC, which owed $7 million.
In California filings, Leonard is named as the company’s manager. His jersey number is 2 while his initials are KL and KL. On Wednesday, emails sent to his ad-list representatives for comment were not immediately returned.
NBA spokesman Mike Bass stated on Wednesday that “we are aware of this morning’s media report regarding the LA Clippers.”
Steve Ballmer, the owner of the Clippers, invested $50 million in Aspiration, and the pair announced a $300 million partnership in September 2021. About a month later, Leonard agreed to a four-year, $ 176 million extension with the Clippers.
After two years, the team claimed that the team’s contract was in default.
The Clippers and Steve Ballmer neither escaped the salary cap, according to the organization. It is absurd to think that Steve made the investment to give money to Kawhi Leonard. Steve made the decision because Aspiration’s cofounders posed as environmentally conscious and committed to doing what they can for their customers.
Aspiration filed for bankruptcy after a lengthy campaign of market manipulation that defrauded both Steve and numerous other investors and sports teams. Neither Steve nor the Clippers were aware of any illegal activity by Aspiration or its cofounder until the government started its investigation.
Clippers say they aren’t a victim of endorsement fraud.
Joseph Sanberg, the co-founder of Aspiration, entered a guilty plea last month after being charged with wire fraud in federal court. According to the prosecution, he defrauded investors and lenders of $248 million, adding that “Aspiration’s financial statements were inaccurate and reported much higher revenue than the company actually received.”
In his reporting, Torre obtained a copy of the endorsement agreement between Aspiration and KL2 Aspire, which stipulated that Leonard would receive a salary of $7 million for four years. Leonard would still be owed the final $7 million at the time Aspiration filed for bankruptcy despite that schedule.
Leonard has not provided any proof that he publicly supported Aspiration.
The Clippers claimed that team sponsors’ endorsement deals with members of the same team are not unusual or unkind. The Clippers’ organization and Steve neither had any control over Kawhi’s independent endorsement deal with Aspiration. It would be completely incorrect to say otherwise.
Source: Aljazeera
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