- The NBA has launched an investigation into the LA Clippers regarding a $28 million endorsement contract between player Kawhi Leonard and Aspiration Fund Adviser LLC, suspecting it circumvented league salary cap rules.
- The probe centres on the relationship between Leonard, the Clippers, and Aspiration, a company that received a $50 million investment from Clippers owner Steve Ballmer and whose co-founder recently pleaded guilty to wire fraud.
- The Clippers have vehemently denied any wrongdoing, asserting that Ballmer's investment was legitimate and that they had no involvement in Leonard's independent endorsement deal with Aspiration.
- The NBA's salary cap system aims to ensure competitive balance across its teams, with severe penalties for violations, including substantial fines, voided contracts, and the forfeiture of future draft picks.
- The league has a history of imposing strict sanctions for cap circumvention, notably fining the Minnesota Timberwolves and stripping them of draft picks in 2000 for similar rule breaches.
IN FULL
Kawhi Leonard, LA Clippers and the alleged NBA salary cap circumvention explained
