With NBA All-Star Weekend set to begin Friday night at the Intuit Dome in Los Angeles, the league’s investigation into the Los Angeles Clippers and Kawhi Leonard regarding potential salary cap circumvention tied to Aspiration is expected to conclude after the break.
According to a collaborative report published Friday by The Athletic’s Joe Vardon and Mike Vorkunov, the results of the independent review conducted by the law firm Wachtell, Lipton, Rosen & Katz are not anticipated until sometime next week. The timing places the decision shortly after Commissioner Adam Silver and league officials gather in Los Angeles for All-Star festivities hosted by Clippers owner Steve Ballmer.
“In publicly available bankruptcy filings reviewed by The Athletic, Aspiration’s three largest creditors listed are the Clippers, who say they are owed $30 million by the environmental firm; Forum Entertainment (also owned by Ballmer, claiming it is owed a debt of $11 million); and Leonard’s personal limited liability company, ‘KL2 Aspire,’ claiming a debt of $7 million,” Vardon and Vorkunov wrote.
The report detailed the financial timeline surrounding Leonard’s endorsement agreement with Aspiration. Leonard registered his limited liability company in November 2021, and his reported $28 million contract with the environmental firm began in April 2022. By December 2022, Aspiration was experiencing financial distress.
NBA review of Aspiration payments looms over Clippers’ midseason turnaround
Clippers minority owner Dennis J. Wong invested $2 million into the company during that period. Shortly thereafter, Aspiration paid Leonard $1.75 million, which matched the quarterly payment structure outlined in his contract. Months later, Ballmer invested an additional $10 million as part of a fundraising round in which Wong was reportedly the only new investor.
Those transactions form part of the NBA’s review into whether any financial arrangements between Leonard and Aspiration constituted improper benefits connected to his contract with the Clippers.
The franchise enters All-Star Weekend amid a season marked by turbulence and transition. Los Angeles opened the year 6-21 before rebounding to a 26-28 record heading into the break. At the trade deadline, the Clippers dealt James Harden to the Cleveland Cavaliers in exchange for Darius Garland. In a separate trade with the Indiana Pacers, Los Angeles sent Ivica Zubac to Indiana and received Bennedict Mathurin, Isaiah Jackson, two first-round picks and one second-round pick.
Leonard, now 34, is in the midst of one of the most productive campaigns of his career. Through 41 games, he is averaging 27.9 points, 6.4 rebounds, 3.7 assists and 2.1 steals per game while shooting 49.1% from the field, 38.3% from three-point range and 91.2% from the free throw line in 32.8 minutes per contest.
While Leonard’s on-court production has helped stabilize the Clippers’ season, the looming results of the Aspiration investigation continue to cast a shadow over the organization. With All-Star festivities underway in Ballmer’s newly constructed arena, the league’s findings are expected to provide clarity on one of the NBA’s most closely watched off-court matters.
