Investigation into Kawhi Leonard deepens as new financial transactions from Steve Ballmer surface, prompts Clippers to issue official statement
The NBA is currently investigating the Los Angeles Clippers and owner Steve Ballmer for alleged cap circumvention, following an investigation into a 'no-show' endorsement deal for Kawhi Leonard with the now-bankrupt company Aspiration.
The investigation has revealed that Ballmer and Clippers' limited partner Dennis Wong allegedly invested $2 million in Aspiration just before a late payment was made to Leonard. This investment was made just weeks before a government investigation into the company began and three days after Forbes ran a story on the company's floundering situation.
The payments, which were made from April 1, 2022, to June 17, 2022, included three installments of prepaid carbon credit purchases from the Clippers in 2022 totaling $56 million. Some of these commitments were built into the sponsorship deal with the company, separate from the investment.
In a twist, Steve Ballmer made a $10 million investment in Aspiration in March 2023, well after the company's troubles began. This move has raised eyebrows, as 19 investment firms turned down Aspiration in a 'vigorous' attempt to raise funds in late 2022 and early 2023.
The question that remains is why Ballmer went back for more investment when others wouldn't. The league will have to determine whether Ballmer's continued investment in Aspiration is enough proof to prompt a significant punishment for cap circumvention by the Los Angeles Clippers.
Investigative sports journalist Pablo Torre broke the story on his podcast 'Pablo Torre Finds Out.' The fourth episode dedicated to this scandal was released Thursday morning, featuring further reporting and details about alleged funding from Ballmer and the Clippers into Aspiration.
The Clippers explain the massive purchases in carbon credits weren't just to offset the Intuit Dome, but rather to go 'far beyond' those requirements, focusing on sustainability. However, the NBA will have to consider whether this evidence is too circumstantial to prove cap circumvention.
Mark Cuban, who has defended Ballmer publicly in this scandal, wrote on Twitter that an easier and safer way to circumvent the CBA would've been to purchase more carbon credits. Public opinion is being shaped, not just for fans, but other owners and people who work for teams around the league.
As the investigation continues, the fate of the Los Angeles Clippers and Steve Ballmer hangs in the balance. Stay tuned for updates on this developing story.
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