The NBA is taking the allegations surrounding Kawhi Leonard and the Clippers quite seriously.
They’ve brought in the law firm Wachtell, Lipton, Rosen and Katz to look into claims that owners Steve Ballmer and Leonard circumvented the salary cap through a $28 million marketing agreement with a company named Suction, according to a report by The Athletic.
This is the same law firm that previously handled cases for former Clippers owner Donald Sterling and former Suns owner Robert Sarver.
The allegations were initially brought to light during a recent episode of the podcast “Pablo Torre Discovery.” The discussion pointed out that an environmental startup—partly financed by a considerable $50 million investment from Ballmer—has locked Leonard into a four-year endorsement deal.
Some former finance employees mentioned to Torre that this arrangement appeared to be a method for the Clippers to bypass the league’s salary cap.
The Clippers quickly denied these accusations soon after the podcast circulated online.
“Neither Mr. Ballmer nor the Clippers circumvented the salary cap or engaged in any misconduct,” the team stated. “The contrary argument is simply false. We ended our relationship due to misunderstandings a few years ago in the 2022-23 season and fulfilled all obligations. Neither the Clippers nor Ballmer had insight into any inappropriate actions by the co-founders.”
Ballmer later expressed to ESPN’s Ramona Shelburne that the situation was “embarrassing” but firmly denied any fraudulent activity, claiming he felt detached from the company in question. “I didn’t have board seats. There was no control. It felt like a rogue company,” he remarked.
Wachtell, Lipton, Rosen and Katz had previously investigated Sterling regarding his racially charged comments, which ultimately led to his ban from the NBA. Sarver faced an inquiry for inappropriate behavior in 2022 and sold the Suns following a one-year suspension from the league.
