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The NBA investigation into whether payments from Clippers team sponsors to star player Kawhi Leonard were a prohibited attempt to circumvent the salary cap has moved to a contentious discussion phase between the team and the league, people with knowledge of the case not authorized to discuss it publicly confirmed to The Times on Monday.<\/p>\n
ESPN reported that the probe conducted on behalf of the NBA by high-powered New York law firm Wachtell Lipton Rosen & Katz has found no evidence establishing that Clippers owner Steve Ballmer funneled money through Aspiration Partners, Daktronics or other team sponsors to pay Leonard millions of dollars in excess of his player contract.<\/p>\n
However, the NBA issued a statement that read: \u201cESPN\u2019s article regarding the LA Clippers investigation \u2014 for which the NBA declined to cooperate \u2014 contains numerous and significant inaccuracies. The results in this matter will be made clear once the investigation is concluded.\u201d<\/p>\n
ESPN said it repeatedly sought comment from the NBA before publishing its article and stands by its reporting.<\/p>\n
NBA commissioner Adam Silver says the investigation into whether the Clippers circumvented the salary cap through an endorsement deal for Kawhi Leonard is wrapping up.<\/p>\n
The Clippers\u2019 stance has not changed since it was reported on Pablo Torre\u2019s podcast 11 months ago that Ballmer invested $60 million in Aspiration, a self-described \u201csocially-conscious and sustainable banking services\u201d firm that in turn promised Leonard $28 million in an endorsement deal.<\/p>\n
\u201cThe Clippers introduced players, including Kawhi Leonard, to companies with which we had business relationships,\u201d the Clippers said Monday in a statement to The Times. \u201cMaking introductions between players and team partners is both an ordinary practice by NBA teams and a common request of players and representatives.<\/p>\n
\u201cFrom there, Kawhi and his representatives handled their own negotiations. The Clippers did not negotiate or dictate the terms of Kawhi\u2019s endorsement agreements or determine what he would be paid.\u201d<\/p>\n
There is no evidence that Leonard did endorsement work for Aspiration, which went bankrupt and saw its co-founder Joseph Sanberg sentenced to 14 years in prison in June for defrauding investors and lenders of over $248 million.<\/p>\n
ESPN reported that the NBA probe has shifted from Ballmer\u2019s involvement to whether the Clippers\u2019 introduction of Leonard to team sponsors was done in an acceptable manner. The outlet reported the two sides met recently to discuss the probe\u2019s preliminary findings as well as a resolution, but no agreement has been reached. The Clippers can request arbitration if they oppose the findings.<\/p>\n
The Clippers contend they did nothing different than numerous other teams across the sports landscape do by introducing a player to a potential sponsor. The difference, they say, was that Leonard\u2019s Aspiration deal was made public when the company filed for bankruptcy.<\/p>\n
\u201cThe fact that a player has an endorsement relationship with a company that also does business with his team is not evidence of salary-cap circumvention,\u201d the Clippers said in their statement. \u201cAfter nearly a year of scrutiny, the central fact remains true and unchanged: the Clippers did not funnel money to Kawhi Leonard, arrange for others to compensate him on our behalf, or otherwise provide him with undisclosed compensation outside of his NBA contract.\u201d<\/p>\n
Over time, the case has added layers of complexity. Torre reported on his podcast Aug. 6 that Leonard had a second lucrative undisclosed sponsorship agreement with a company doing business with the team. Scoreboard manufacturer Daktronics, which built the $100-million videoboard at the Clippers\u2019 Intuit Dome, hired Leonard to a multi-million-dollar endorsement deal for which he did no work, according to Torre.<\/p>\n