The LA Clippers issued a statement responding to allegations made by Pablo Torre, which suggested that star forward Kawhi Leonard had entered into a $28 million endorsement deal with a dubious tree-planting company, financed by $50 million from team owner Steve Ballmer. This arrangement was described as a ’no-show job’, purportedly intended to help the Clippers ’evade’ the NBA salary cap.

The Clippers firmly stated, “Neither Mr. Ballmer nor the Clippers circumvented the salary cap or engaged in any misconduct related to Aspiration… Any contrary assertion is provably false: The team ended its relationship with Aspiration years ago, during the 2022-23 season, when Aspiration defaulted on its obligations. Neither the Clippers nor Mr. Ballmer was aware of any improper activity by Aspiration or its co-founder until after the government instituted its investigation.”

Translation: “Neither Mr. Ballmer nor the Clippers circumvented the salary cap or engaged in any misconduct related to Aspiration… Any contrary assertion is provably false: The team ended its relationship with Aspiration years ago, during the 2022-23 season, when Aspiration defaulted on its obligations. Neither the Clippers nor Mr. Ballmer was aware of any improper activity by Aspiration or its co-founder until after the government instituted its investigation.”

While they expressed their readiness to collaborate with law enforcement, the implications of Torre’s report could lead to significant penalties, including a potential $4.5 million fine, the forfeiture of a first-round draft pick, and the invalidation of Leonard’s contract.

At the center of the controversy is “Aspiration”, which received $50 million from Ballmer but filed for bankruptcy in March, allegedly owing Leonard $7 million. Leonard is reportedly the manager of “KL2 Aspire LLC”, a creditor of Aspiration which is facing accusations of fraud.

Having joined the Clippers in 2019 after leading the Toronto Raptors to an NBA Championship, Leonard secured a three-year, $153 million contract extension in January 2024, coming after a four-year, $176.3 million extension in August 2021. The 34-year-old has been recognized as a six-time All-NBA player and a two-time Finals MVP, averaging 21.5 points and 5.9 rebounds through the last season.