Next week, the NBA Board of Governors \u2014 better known as the 30 team owners \u2014 is meeting in New York, and we know what will be the hot topic of discussion now.<\/p>\n
The NBA has opened an investigation<\/a> into allegations that the Los Angeles Clippers and owner Steve Ballmer circumvented the salary cap to get Kawhi Leonard an additional $28 million through a now-bankrupt environmental company, reporting done by Pablo Torre and team for the Pablo Torre Finds Out podcast (PTFO)<\/a>. <\/p>\n While the NBA league office, under the guidance of Commissioner Adam Silver, will conduct the investigation, it is the other 29 owners who would have to vote on any sanctions or punishments. Right now, there are more questions than answers. <\/p>\n There are two key topics for the investigation looking forward. First, what did Ballmer and the Clippers know, and when did they know it? Second, depending on the findings (especially if the evidence is all circumstantial), how willing are the other 29 owners to come down hard on one of their own? There\u2019s a lot to get at, let\u2019s break it all down in bullet points.<\/p>\n Circumstantial vs. smoking gun evidence<\/p>\n \u2022 PTFO laid out a troubling timeline garnered through court records and former employees of Aspiration (a \u201cgreen bank\u201d whose model was to do large amounts of tree planting to gain carbon credits for its corporate clients, a company that has since filed for bankruptcy and had its CEO plead guilty to fraud).<\/p>\n That timeline: In September 2021, Ballmer made a personal $50 million investment in Aspiration. A couple of weeks later, Leonard signed a four-year, $176 million contract extension with the Clippers. At the Clippers\u2019 media day in September 2021, Ballmer announced a $300 million partnership with Aspiration as part of making the Intuit Dome \u201cgreen\u201d (a priority of his). Soon after, Kawhi Leonard signed a $28 million endorsement deal with Aspiration.<\/p>\n \u2022 That endorsement was what several Aspiration employees told Torre was a \u201cno-show\u201d job. Leonard never made any public appearances for the company, did not appear in its marketing, nor did he post anything on social media about Aspiration (as others who had endorsements with the company, such as Robert Downey Jr., had done). Leonard just collected the checks, using a clause in his endorsement deal that allowed him to get out of anything he didn\u2019t believe in (which was apparently everything).<\/p>\n \u2022 Multiple Aspiration employees said to PTFO they were told not to question the Leonard endorsement and that it was a way for the Clippers to circumvent the salary cap. It doesn\u2019t help the Clippers\u2019 case that Leonard\u2019s adviser, business partner and uncle, Dennis Robertson \u2014 who famously made unreasonable requests<\/a> such as sponsorship deals, a house, a plane on call, and more when teams were recruiting Leonard in 2019 \u2014 is involved and helping Leonard cash those checks. <\/p>\n \u2022 Here\u2019s where it gets tricky for the league\u2019s investigators: All of that is circumstantial evidence. <\/p>\n \u2022 Ballmer investing in a green company that turned out to be a scam? He wasn\u2019t the only billionaire bilked by Aspiration and its CEO. Leonard signing an endorsement deal with Aspiration? Star players signing independent endorsement contracts with team sponsors is pretty common. The Aspiration employees PTFO spoke with said they were \u201ctold\u201d this was to circumvent the NBA salary cap, which can be brushed aside as office rumors if there is no email or recorded conversation with Ballmer or a Clippers executive saying exactly that.<\/p>\n \u2022 The Clippers deny everything, saying they were scammed like everyone else, and that they had nothing to do with Leonard\u2019s endorsement deal and how that operated. Here is the Clippers\u2019 longer statement on the accusations, sent to a number of media members.<\/p>\n \u201cNeither the Clippers nor Steve Ballmer circumvented the salary cap. The notion that Steve invested in Aspiration in order to funnel money to Kawhi Leonard is absurd. Steve invested because Aspiration\u2019s co-founders presented themselves as committed to doing right by their customers while protecting the environment.<\/p>\n \u201cAfter a long campaign of market manipulation, which defrauded not only Steve but numerous other investors and sports teams, Aspiration filed for bankruptcy. Its co-founder, Joseph Sanberg, recently pleaded guilty to a $243 million fraud. Neither Steve nor the Clippers had knowledge of any improper activity by Aspiration or its co-founder until after the government initiated its investigation. Aspiration was a team sponsor for the 2021-2022 and 2022 2023 seasons before defaulting on its contract.<\/p>\n \u201cThere is nothing unusual or untoward about team sponsors doing endorsement deals with players on the same team. Neither Steve nor the Clippers organization had any oversight of Kawhi\u2019s independent endorsement agreement with Aspiration. To say otherwise is flat-out wrong.<\/p>\n \u201cThe Clippers take NBA compliance extremely seriously, fully respect the league\u2019s rules, and welcome its investigation related to Aspiration. The Clippers will also continue to cooperate with law enforcement in its investigation into Aspiration\u2019s blatantly fraudulent activity.\u201d<\/p>\n \u2022 The Clippers\u2019 defense is the same one politicians use all the time: Plausible deniability. Leonard and his representatives have yet to comment at all. <\/p>\n \u2022 This is where Mavericks\u2019 minority owner Mark Cuban comes in: He says Ballmer got scammed, but even if he wanted to circumvent the salary cap he is too smart to leave a paper trail.<\/p>\n I\u2019m on Team Ballmer. <\/p>\n As much as I wish they circumvented the salary cap, First Steve isn\u2019t that dumb. If he did try to feed KL money, knowing what was at stake for him personally, and his team, do you think he would let the company go bankrupt ? Knowing all creditors would\u2026 https:\/\/t.co\/AxvMoLmPv7<\/a><\/p>\n