A $28MM endorsement deal signed by Kawhi Leonard could land the Clippers in hot water with the league.
According to an investigation by ESPN’s Pablo Torre on his “Pablo Torre Finds Out” podcast (video link), Leonard performed no work for an allegedly fraudulent tree-planting company funded by $50MM from Clippers owner Steve Ballmer.
The endorsement deal could be construed as a means to circumvent the salary cap, which would carry heavy penalties from the league.
After leading the Raptors to the 2019 championship, Leonard declined his player option and became an unrestricted free agent. Leonard chose to sign with the Clippers on a three-year, $103.1MM deal in July of that year. He has subsequent signed a pair of extensions with the franchise.
The “tree brokerage” company named Aspiration filed for bankruptcy in March 20025. Among the list of creditors is KL2 Aspire LLC with Leonard named as the manager or member. The company owed KL2 Aspire LLC $7MM.
Torre couldn’t find any evidence that Leonard actually performed any work for the company, unlike other celebrity endorsers. Torre interviewed seven former employees of the company, one of whom provided a document showing Leonard was to receive $7MM over four years in the marketing agreement. According to a former Aspiration employee who worked in the finance department, Leonard “didn’t have to do anything.”
The Clippers denied any wrongdoing. The organization provided Torre with a statement that read, “Neither Mr. Ballmer nor the Clippers circumvented the salary cap or engaged in any misconduct related to Aspiration. Any contrary assertion is provably false.”
Back in 2000, the league and then commissioner David Stern issued harsh penalties against the Timberwolves due to salary cap violations. Minnesota signed Joe Smith to a series of one-year contracts below market value with the promise of giving him a long-term deal that would pay him up to $86MM over seven seasons.
As Spotrac contributor Keith Smith notes (Twitter link), Smith’s contract was voided and the Timberwolves were fined $3.5MM and had five first-round picks forfeited. Owner Glen Taylor was suspended and GM Kevin McHale was forced to take a leave of absence.