Steve Ballmer's Clippers investment linked to Kawhi Leonard, a revelation made by Pablo Torre, raising concerns.
In the world of professional basketball, the Los Angeles Clippers' ties to the bankrupt sustainability company Aspiration have become the centre of the NBA's most scrutinised controversy. The controversy deepens as new reports emerge, casting a shadow over the team's ownership and star player, Kawhi Leonard.
In 2022, Kawhi Leonard signed a $28 million promotional contract with Aspiration, along with a $20 million equity agreement. This investment was reported by The Athletic in the NBA context. The Clippers, too, had struck a 23-year, $300 million arena sponsorship deal with Aspiration in 2021.
However, the Clippers had previously issued a statement claiming they ended their relationship with Aspiration during the 2022-23 season when Aspiration defaulted on its obligations. Torre's reporting has renewed scrutiny on the Clippers' claims about ending their relationship with Aspiration.
At the heart of the controversy is the connection of the team's ownership to the scandal surrounding Kawhi Leonard. Steve Ballmer, owner of the Los Angeles Clippers, made a personal investment of $10 million in Aspiration in March 2023, a time when the company's financial collapse was well known, according to a former Aspiration employee. This investment was made through Ballmer's personal LLC.
The timing of Ballmer's investment and the dissolution of the Clippers' economic ties with Aspiration remains unclear, with official company records, press releases from the Los Angeles Clippers and Aspiration, or financial news sources from 2023 providing the exact details.
The controversy took a turn for the worse when Kawhi Leonard tore his meniscus in the opening round of the 2023 playoffs against the Phoenix Suns, causing his postseason to end abruptly. The Clippers lost the series against the Phoenix Suns 4-1, after Leonard's injury.
The ongoing investigation into the Clippers' ties to Aspiration and Kawhi Leonard's direct ties to the company is expected to intensify. Potential penalties for the Clippers in the ongoing investigation range from fines to draft pick forfeiture.
The situation has not been helped by the recent guilty plea of Joseph Sanberg, co-founder of Aspiration, who pleaded guilty to defrauding investors of $248 million. Aspiration has since declared bankruptcy.
NBA Commissioner, Adam Silver, has acknowledged that the league is reviewing the case involving the Clippers and Aspiration. The Clippers have yet to comment on the ongoing investigation.
In the 2022-23 season, Kawhi Leonard played 52 games, averaging 23.8 points, 6.5 rebounds, 3.9 assists, and 1.4 steals. Despite the controversy surrounding his team, Leonard's performance on the court has remained a bright spot in an otherwise challenging season for the Los Angeles Clippers.
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