Pablo Torre provides more evidence in the Clippers Kawhi Leonard scandal

The controversy about Kawhi Leonard showed no sign of subsidence. Los Angeles Clippers and boss Steve Ballmer are once again attracted attention after journalist Pablo Torre revealed that Leonard's endorsement agreement with bankrupt financial services company Aspiration could violate salary cap rules. According to Torre's report on its podcast "Pablo Torre Finds Out," Clippers Vice Chairman Dan Dennis Wong invested $1.99 million in December 2022, while Aspiration had previously paid Leonard $1.75 million. Records show that the troubled company marked the deal as "critical" and fired some employees on the same day. The former employee told Torre that Mr. Huang's investment timing was "shocking" given that Aspiration was already in a loss of money at the time.

Balmer's investment of nearly $10 million in Aspiration in March 2023 further attracted people's attention. This is only a few months after Mr. Huang’s deal, and Leonard’s endorsement contract has attracted attention within the company. Previously, shortly after Aspiration signed a $300 million sponsorship agreement with the Clippers, Ballmer and Oak Capital jointly injected $50 million into Aspiration.

Steve Ballmer's investment added weight to questions surrounding the Clippers

The Athletic and Torre's report looked up internal documents and believed that Leonard's contract was extremely generous. Especially compared to other spokespersons such as Leonard DiCaprio and Robert Downey Jr., Leonard's contract promised $28 million in cash and $20 million in equity. However, employees questioned its market value, saying the agreement “comes out of thin air.”

The U.S. Securities and Exchange Commission (SEC) subsequently accused Aspiration co-founder Joe Sanberg of scamming investors $248 million. Leonard is currently listed as a creditor in the company's bankruptcy filing, with a debt amount of $7 million.

NBA has hired Wachtell, Lipton, Rosen & Katz law firm to investigate whether the Clippers and Ballmer used Aspiration to circumvent league rules. Ballmer denied any misconduct. The Clippers boss said he was misled by company executives and had nothing to do with Leonard's contract.

Alliance President Adam Xiao Hua said that the alliance will not only focus on whether the behavior is inappropriate before making punishment. Potential penalties could include fines, cancellation of draft picks, and even cancellation of Leonard's contract. At present, the Clippers are facing increasingly stringent scrutiny. Especially as Torre's reports keep revealing new details that touch the core of their relationship with Leonard.