NBA Launches Examination into Kawhi Leonard Endorsement Deal
NEW YORK, NY - The National Basketball Association has retained the law firm wachtell, Lipton, Rosen & Katz to investigate an alleged fraudulent endorsement scheme involving Los Angeles Clippers star Kawhi Leonard, the team, and owner Steve Ballmer. The probe was initiated following reports that Leonard unknowingly endorsed a company allegedly created as part of a fraud, possibly impacting the league’s endorsement policies and raising questions about due diligence.The investigation centers around Leonard’s partnership with a company that Ballmer invested in, believing it to be a legitimate entity. The NBA’s move signals a serious response to the unfolding situation, which echoes past league controversies involving ownership conduct and potential breaches of trust.The outcome of the investigation could lead 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 Shelburne on Thursday night, Ballmer expressed embarrassment over the situation but denied any wrongdoing, claiming he was deceived 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,” Ballmer said.The Clippers organization has stated its willingness 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. More recently, Robert Sarver sold the Phoenix Suns after being suspended for a year by the league following an investigation into inappropriate behavior in 2022. The NBA is aiming to avoid similar reputational damage and maintain the integrity of its business practices.
The league has not announced a timeline for the completion of the investigation.