The Los Angeles Clippers claim owner Steve Ballmer was “duped” into making investments with the now-bankrupt company at the center of an investigation into alleged salary cap circumvention.
The team released a statement Thursday about its dealings with Aspiration, a sustainability business that Ballmer and the Clippers reportedly invested $118 million in from 2021-23.
An investigation by ESPN contributor Pablo Torre claims Clippers All-Star Kawhi Leonard was to receive $28 million in cash from Aspiration in a “no-show” endorsement deal as a way of working around the NBA salary cap.
Ballmer has said he was defrauded by Aspiration and has denied allegations of circumventing the cap.
On Thursday’s edition of the “Pablo Torre Finds Out” podcast, Torre said the Clippers purchased $56 million in carbon credits from Aspiration in 2022 — two years before the Intuit Dome opened — on dates that aligned with Leonard signing his endorsement deal.
The Clippers responded with a lengthy statement about the team’s dealings with Aspiration.
“Steve and his family are focused on sustainability, which is why Intuit Dome was designed to be a carbon neutral building from its inception and to achieve LEED Zero status over time.
“Our development agreements for the arena included mandates to buy carbon credits, but after studying the issue of neutrality, we went far beyond those requirements, exploring ways to address emissions from our fans and contracting with Aspiration to directly purchase carbon offsets, as well as broker the acquisition of additional offsets.
“Some of those commitments were built into the sponsorship deal with Aspiration — totally separate of the investment in the company — and we made payments to Aspiration until the company was unable to fulfill their responsibilities.
“The effort reflects Steve wanting to set a positive example and raise awareness of the growing and important role of voluntary carbon markets. Unfortunately he was duped on the investment and some parts of this agreement, as were many other investors and employees.”
The league will ultimately have to determine if there was any wrongdoing by the Clippers.
The current CBA allows for a fine of up to $4.5 million for a first offense of circumventing the salary cap, the forfeiture of one first-round draft pick, and/or the voiding of any contracts or transaction that violated league rules.
Leonard originally signed with the Clippers in 2019 before agreeing to a three-year contract extension worth around $150 million in early 2024.
The 34-year-old won the NBA Finals MVP award both times he earned NBA championship titles (2014 with the San Antonio Spurs, 2019 with the Toronto Raptors). He also has two NBA Defensive Player of the Year awards to his name.
He missed the 2021-22 campaign following knee surgery and has been limited in each of the past three seasons due to ongoing knee issues. He averaged 21.5 points and 5.9 rebounds in just 37 games last season.
In 13 seasons with the Spurs, Raptors and Clippers, the six-time All-Star has averaged 20.1 points and 6.4 rebounds in 733 games.
–Field Level Media
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