NBA Launches Examination into Kawhi Leonardโ Endorsement Deal
NEW YORK, NY -โ The National Basketball โฃAssociation has โฃretained the law firmโข wachtell, Lipton, Rosen & Katz toโข investigate an alleged fraudulent endorsement schemeโ involving Losโฃ Angeles Clippers starโ Kawhi Leonard, the team, and โฃownerโ Steveโ Ballmer. The probe was initiated following reports that โคLeonard unknowingly endorsed a company allegedly created asโ part ofโฃ a fraud, possibly impactingโ the league’s endorsement policies andโ raising questions โขabout due diligence.The investigation centers around Leonard’s partnership withโค a company that Ballmer invested in, believing it โto be a legitimate entity. The NBA’s moveโข signals a serious response to the unfoldingโ situation, which echoes past league controversies involving โฃownership conduct and potential breaches of trust.The outcome of the investigation couldโค leadโค to sanctions for the Clippers, individual penalties, and a reevaluation of how the league vets endorsement deals.
According to statements made to ESPN’s Ramona Shelburneโค on Thursday night, Ballmer expressed embarrassment over the situation but deniedโ any wrongdoing, claiming he was deceived by the โคcompany. “I had no boardโฃ seat. I had no control. โHeck,it was a fraudulent company. It’s โpossible nobody โขhad any control,” Ballmer said.The Clippers organization has stated its โwillingness to cooperate fully with law enforcement.
This situation draws parallels to previous NBA scandals. In 2014, Donald Sterling was banned from the NBA following a Wachtell, Lipton, Rosen & Katz investigation into racially insensitive comments.โค More recently, Robert Sarver sold the Phoenix Suns after โคbeing suspended forโค a year by theโข league following an investigation into inappropriate โbehavior in 2022. The โคNBA is aiming to avoid similarโ reputational damage andโ maintain the integrity of its business practices.
The league has not โannounced a timeline for the completion of the investigation.