Investigative action in the NBA: Latest developments as league allegedly enlists legal representation to scrutinize Kawhi Leonard's contract controversy
NBA Investigates Los Angeles Clippers over Salary Cap Allegations
The National Basketball Association (NBA) is currently investigating the Los Angeles Clippers for allegations of salary cap circumvention involving star player Kawhi Leonard. The investigation, which was initiated in 2019, has been rekindled due to recent evidence that surfaced, promising a thorough examination of the Clippers' financial dealings.
In the heart of the investigation lies a $28 million sponsorship deal between Leonard and Aspiration, a now-bankrupt sustainability company that received $50 million in funding from Clippers owner Steve Ballmer. According to reports by investigative journalist Pablo Torre, this deal was structured to provide Leonard with $28 million in cash over four years, as long as he was playing for the Clippers.
However, the NBA has not found any evidence that the Clippers met these requests, and the league has hired the New York-based law firm Wachtell, Lipton, Rosen & Katz to conduct the investigation.
The allegations stem from a complaint issued to the league office in 2019, accusing Dennis Robertson, Leonard's uncle, of asking for improper benefits during the free agency process. This is not the first time the Clippers have been in hot water regarding such matters. In 2015, the team was fined $250,000 for offering an unauthorized endorsement contract to DeAndre Jordan.
The rules governing the NBA aim to prevent teams from paying players more than the salary cap allows to gain a competitive advantage. If any relevant evidence of improper benefits surfaces in the future, the league will re-open the investigation and pursue the charges yet again.
Mark Cuban, the former Mavericks owner, has shared his thoughts on the situation, stating that he's "Team Ballmer." Cuban argues that Ballmer would not have let Aspiration go bankrupt if he was trying to feed Kawhi Leonard money, knowing what was at stake for him personally and his team.
The situation is further complicated by a separate report stating that Aspiration had a secret side deal with Leonard worth another $20 million. Additionally, Johnny Wilkes, an alleged friend of both Leonard and Paul George, sued the Clippers and team consultant Jerry West in 2020, alleging that he was owed $2.5 million for helping the Clippers secure Leonard's services.
In 2022, the lawsuit was dismissed in the Los Angeles Superior Court. The outcome of the ongoing investigation will determine the potential consequences for the Clippers, which could range from fines, loss of draft picks, or other sanctions. The NBA has made it clear that they are committed to maintaining the integrity of the league and upholding the rules that ensure fair competition for all teams.
