Steve Ballmer Calls for NBA Investigation
Steve Ballmer, the owner of the Los Angeles Clippers, has urged the NBA to look into other teams that might be skirting the league’s salary cap. This comes as he himself is under investigation related to a controversial deal involving star player Kawhi Leonard.
“I want the league to investigate and take it seriously. The rules for avoiding wage caps are crucial, and I think it’s important to address this,” Ballmer shared with ESPN on Thursday.
On Wednesday, podcaster Pablo Torre brought to light allegations that Ballmer and Leonard managed to evade the salary cap through a deal with the environmental startup Aspiration and a $28 million marketing agreement that allegedly required no actual work.
Ballmer had invested $50 million into Aspiration, securing an advertising opportunity and naming rights for the Clippers’ upcoming Englewood Arena, set to open in 2024.
“We thought everything was set. All the deals were lined up,” Ballmer explained. “Then they wanted Kawhi introduced. According to the rules, we can refer sponsors to players, but we can’t be directly involved.”
Leonard, a two-time NBA champion, was highlighted in a report back in November 2021, which coincided with a problematic $300 million sponsorship deal.
Ballmer asserts that neither he nor the Clippers were privy to the specifics of the arrangement between Leonard and Aspiration until after it was made public.
“I even found an email from early November about my first introduction. They took it from there without our involvement,” Ballmer recalled. “I eventually learned they reached a deal, but I honestly don’t know what the deal was.”
Torre also claimed in a report that Leonard got a “side deal” worth $20 million. A former employee of the Clippers allegedly mentioned that Ballmer instructed the staff not to question Leonard’s agreement.
Ballmer noted that his connection to Aspiration was limited, as his investments accounted for less than 3% of what the company needed for funding, which feels a bit disconcerting.
“I had no board seats or control. It was a bit chaotic. No one seemed to be in charge,” he added.
One of Aspiration’s co-founders, Joe Sanberg, recently pleaded guilty to committing wire fraud involving over $248 million in misleading claims to investors and lenders. The Department of Justice made this announcement in August.
Sanberg possibly faces up to 40 years in prison.
Ballmer reflected, “These were dishonest people. I invested because I believed in their potential and what they told me. It’s hard to foresee what they would eventually do or how that could relate to Kawhi’s contract.” He also expressed some regret, admitting he didn’t see any red flags during his review of the company finances. “It’s a little embarrassing; I wish I had caught it, but I didn’t,” he admitted. “I know other smart investors missed it too.”
