Adam Xiaohua meets with the owner of the NBA team to discuss Kawhi Leonard's relationship with the Clippers
The Los Angeles Clippers face Kawhi Leonard's investigation for suspected evasion of the salary cap, and Adam Silver meets with the owner of the NBA team.
NBA President Adam Silver and 30 league team owners will hold a preseason council meeting in New York on Wednesday, which is expected to discuss ongoing disputes between the Los Angeles Clippers and Kawhi Leonard and bankrupt financial company Aspiration.
She will also hold a press conference after the meeting, which is expected to ask questions about the league's investigation into the Clippers and Aspiration, according to The Athletic's Mike Vorkunov.
The core of these allegations is a sponsorship agreement reached in April 2022. Reports by Pablo Torre Finds Out, and later confirmed by The Athletic, revealed that Leonard signed a $28 million contract with Aspiration, but he did not publicly promote the company. Leonard also acquired $20 million in equity from co-founder Joseph Thunberg, though he was not listed as a shareholder in official documents, two sources told The Athletic. The Boston Sports News first reported the details of the stock transaction.
Clippers owner Steve Ballmer also has contacts with the company. In September 2021, he invested $50 million, and the same month the Clippers announced a 23-year, $300 million venue sponsorship agreement with Aspiration. Later, Thunberg was charged with scamming investors $248 million, causing the company to go bankrupt. The U.S. Department of Justice said he has agreed to plead guilty.
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The NBA hired the law firm Wachtell, Lipton, Rosen & Katz for a formal review last week.
Silver talked about a similar issue in 2019 when asked how the league would respond to potential wage cap violations similar to previous scandals. He cited the Minnesota Timberwolves' penalty during the coaching period of 2000, 2000. At the time, the Timberwolves were fined $3.5 million and lost five first-round picks, Joe Smith's contract was voided, and team owner Glen Taylor and general manager Kevin McHale were temporarily suspended.
"Of course, if we encounter similar events again, we have the same response," Silver said in 2019. “The boundaries of that violation were very clear, and the response from the Alliance Office was very strong at that time.”
This week, Leonard's name appeared in other reports related to his 2019 free agent market. Bruce Arthur of the Toronto Star reported that Leonard’s uncle Dennis Robertson made some unusual concessions to the Raptors, including a portion of Maple Leaf Sports Entertainment, external sponsorship, and a deal with Paul George. Lebaan Ottoman of the Toronto Star later confirmed a offer that if Leonard stays in Toronto, he would receive $10 million a year through a sponsorship agreement.
Leonard signed a three-year, $152.4 million contract extension with the Clippers in January 2024, and he has not publicly commented on the allegations. The results of the league's board meeting may set the tone for how the league will handle the Clippers' situation in the future.
