Following an 11-month investigation, the NBA was not able to show any proof that Los Angeles Clippers owner Steve Ballmer funneled money to Kawhi Leonard via team sponsorships to bypass the salary cap, ESPN reported on Monday.
Per the report, the NBA is looking into whether introducing Leonard to team sponsors violates the league’s rules against salary cap circumvention, and if the Clippers committed a “failure to supervise” regarding their employees. What rule the organization might have violated or the potential punishment is not yet known.
Aspiration, with which Leonard had a deal, and three other companies that also signed sponsorship deals with the Clippers have been involved in the investigation, per the report.
Aspiration, a green-banking firm, went bankrupt last year, and its co-founder wound up in prison after pleading guilty to fraud charges involving $248 million.
According to ESPN, the league presented its initial findings late last month and has recently been in the process of resolving the investigation. An NBA spokesperson did not reply to ESPN’s requests for comment.
In a statement to ESPN, the Clippers said the team “introduced players, including Kawhi Leonard, to companies with which we had business relationships. Making introductions between players and team partners is both an ordinary practice by NBA teams and a common request of players and representatives.”
According to the statement, the Clippers did not “negotiate or dictate” the terms of Leonard’s endorsement deals” and added that a player-company business relationship does not prove any salary-cap circumvention.
The Toronto Raptors, who lost Leonard in free agency after winning the 2019 NBA championship, agreed in principle at the end of June to bring him back. The deal hasn’t been completed, and the NBA made it clear Toronto “would assume the risk of any potential outcome of the investigation impacting Kawhi.”
“In light of this,” the Raptors stated, “we will wait until the league’s investigation is complete.”
The Clippers, who have repeatedly denied any wrongdoing related to Leonard’s contract, also confirmed the deal was on hold. Ballmer has also denied the allegations.
Leonard, 35, is a two-time NBA Finals MVP, having won the award in title runs with the San Antonio Spurs (2014) and Toronto.
Leonard averaged 27.9 points, 6.4 rebounds and 3.6 assists in 65 games for the Clippers last season. A seven-time All-Star and two-time Defensive Player of the Year, he has made the NBA’s All-Defensive Team seven times.
