NBA Investigating Clippers’ $28 Million kawhi Leonard Marketing Deal as Potential Salary Cap circumvention
LOS ANGELES – The NBA is reportedly investigating a $28 million “organic marketing sponsorship” deal between the Los Angeles Clippers adn Kawhi Leonard, as allegations surface that the arrangement was designed to circumvent the league’s salary cap. The investigation stems from a report by The athletic, based on interviews with seven former employees of Aspiration, a financial firm that sponsored Leonard.
The deal, initiated during Leonard’s 2021 re-signing with the Clippers, has raised concerns that it was structured not as a legitimate marketing agreement, but as a hidden form of compensation to sidestep salary cap restrictions. According to The Athletic’s report, former Aspiration finance department employees viewed the deal as a way for the Clippers to circumvent the cap.
“My reaction was, ‘What the f-k?'” one source told The Athletic. “I was told, ‘Oh, these are the major contracts and the major players you really need to be aware of.’ We went through a litany of really, really top-tier name contracts and then, oh, incidentally speaking, we also have a marketing deal with Kawhi Leonard, a $28 million organic marketing sponsorship with Kawhi. And I have had any questions about it, essentially don’t because it was to circumvent the salary cap lol. There was lots of lol when things were shared.”
The Clippers vehemently deny the accusations. In a statement released to The Athletic on Wednesday, the team asserted, “Neither Mr. Ballmer nor the Clippers circumvented the salary-cap or engaged in any misconduct related to Aspiration.” The team stated it ended its relationship with Aspiration during the 2022-23 season when the firm defaulted on its obligations and that neither the Clippers nor owner Steve Ballmer were aware of any improper activity until after the government began its investigation.
“The team and Mr. Ballmer stand ready to assist law enforcement in any way they can,” the statement continued.Leonard initially signed a four-year, $141 million deal with the Clippers in 2019. He re-signed with the team on a four-year contract in 2021 and subsequently signed another three-year deal to remain in Los Angeles through the 2026-27 season. The marketing deal with Aspiration reportedly began during the first of these re-signing periods.The NBA’s investigation is ongoing, and potential penalties for salary cap circumvention can include fines, loss of draft picks, and the voiding of player contracts. The league routinely scrutinizes player contracts and endorsement deals to ensure compliance with its collective bargaining agreement.
