Los Angeles Clippers star forward Kawhi Leonard has been making headlines recently for an allegedly fraudulent endorsement deal. Here’s what you should know about this situation.
The allegations towards the Clippers are that they made way for a fraudulent $28 million “endorsement deal” with tree planting company Aspiration. Aspiration is also now bankrupt, having filed for bankruptcy in March 2023. Which makes this situation even more interesting is the fact that Aspiration had big investments from Clippers owner Steve Ballmer.
On the Aspiration contract signed by Leonard, there are multiple suspect clauses. One of which sets up a structure for Leonard do receive payments, even if he does not do any work. Another clause states that he could only received these payments if he was a player for the Clippers. Overall, this is an attempt by the Los Angeles Clippers to evade the NBA salary cap.
The Clippers have denied these allegations; they released statements on September 3rd. They have also said that they will cooperate with the NBA’s investigations.
So, what are possible punishments should the NBA find the Clippers guilty? According to article 13 of the NBA’s Collective Barganing Agreement, the NBA could hand out a fine of $4.5 million for first time violators. Should the Clippers violate the rules of the CBA for a second time, they would have to pay a fine of $5.5 million and forfeit their next first round draft pick.
As of writing the NBA is still investigating this situation. For more background, follow ESPN contributor Pablo Torre’s reporting on this developing situation.
