Los Angeles Clippers superstar Kawhi Leonard has recently become the center of attention due to a contract with the financial startup Aspiration. The deal is worth a staggering $28 million, raising questions about the actual benefits of his public endorsement. With Aspiration’s bankruptcy, it has come to light that the company owes money to both the Los Angeles Clippers and Leonard, sparking speculation about potential violations of NBA salary cap regulations. Clippers owner Steve Ballmer emphasized that this is simply a standard business partnership and not an attempt to evade salary restrictions. The NBA is currently investigating the situation, focusing on the endorsement’s legitimacy and whether the amount exceeds fair market value, as well as whether Leonard’s payment is directly linked to his performance with the team.
This incident has exposed the potential gray areas in the NBA’s salary cap system between teams and star athletes. Veteran journalist Pablo Torre points out that the contract between Aspiration, the Clippers, and Leonard highlights the root of the issue. Since its founding in 2013, Aspiration has been dedicated to promoting sustainable finance, which has led to an injection of funds from Ballmer. Their long-term collaboration with the Los Angeles Clippers and Leonard features a contract structured in an unusual way, sparking considerable discussion.
Interestingly, the contract grants Leonard ultimate decision-making power over all content production, meaning he can choose whether or not to engage in any promotional activities. Torre pointed out that no public promotional cases involving Leonard and Aspiration have been found, raising questions about the authenticity of the contract. Additionally, Aspiration is required to pay Leonard 7 million dollars annually, a payment intricately tied to his ongoing association with the Los Angeles Clippers, which adds another layer of complexity to the situation.
As the bankruptcy proceedings for Aspiration unfold, Leonard’s company, KL2 Aspire LLC, has also been listed among the creditors, indicating that approximately $7 million remains unpaid, which corresponds to the final year’s contract amount. Meanwhile, former employees from Aspiration’s finance department revealed that payments to Leonard were internally referred to as Avoiding salary caps, and anonymous witnesses confirmed that this compensation was prioritized even during the company’s financial struggles.
Reports indicate that in addition to the $28 million endorsement fee, Aspiration co-founder Joseph Sanberg has arranged approximately $20 million in stock as additional compensation for Leonard, to be paid out over four years. Weaving together various clues, Pablo Torre is filled with skepticism regarding the truth behind this case, doubting whether the Los Angeles Clippers are attempting to provide Leonard with compensation beyond the salary cap under the guise of a fake endorsement. How the truth of this incident will be revealed remains to be seen, pending further investigation.
