The NBA is taking the Kawhi Leonard-Clippers endorsement scandal seriously.
The league hired the law firm Wachtell, Lipton, Rosen and Katz to investigate allegations that Clippers owner Steve Ballmer and Leonard circumvented the salary cap with a $28 million no-show marketing deal with a company called Aspiration, The Athletic reported Friday.
Wachtell, Lipton, Rosen and Katz is the same law firm the league hired to investigate former Clippers owner Donald Sterling and ex-Suns owner Robert Sarver, both of whom faced misconduct charges before their tenures came to an end.
The allegations first surfaced in an episode of the “Pablo Torre Finds Out” podcast on Wednesday, which reported that the environmental start-up — partially funded by a $50 million investment from Ballmer — had inked Leonard to a four-year endorsement deal.
Some former Aspiration employees who had worked in the finance department told Torre that the deal was viewed as a way for the Clippers to work around the league’s salary cap.
The Clippers denied the allegations shortly after the episode made rounds across the internet.
“Neither Mr. Ballmer nor the Clippers circumvented the salary-cap or engaged in any misconduct related to Aspiration,” the team said in a statement. “Any contrary assertion is provably false: The team ended its relationship with Aspiration years ago, during the 2022-23 season, when Aspiration defaulted on its obligations. Neither the Clippers nor Mr. Ballmer was aware of any improper activity by Aspiration or its co-founder until after the government instituted its investigation.
“The team and Mr. Ballmer stand ready to assist law enforcement in any way they can.”
Ballmer told ESPN’s Ramona Shelburne late Thursday night that he was “embarrassed” by the news, but denied any wrongdoing, stating that he was conned by the company.
“I had no board seat. I had no control. Heck, it was a fraudulent company. It’s possible nobody had any control,” he said.
After Wachtell, Lipton, Rosen and Katz’s 2014 investigation into Sterling for racially insensitive comments, the disgraced former Clippers owner was banned from the NBA.
Sarver, who was investigated for inappropriate behavior in 2022, sold the Suns after being suspended for a year by the league.