On the latest episode of the Pablo Torre Finds Out podcast, Torre reported that a 2023 whistleblower complaint to the SEC accused Aspiration of fraudulently misusing funds to assist the Los Angeles Clippers circumvent salary cap restrictions to pay Kawhi Leonard “an incentivized bonus.”
Torre shared screenshots of the complaint, but he did not report whether the SEC verified the whistleblower’s account.
The SEC brought charges against Aspiration co-founder Joseph Sanberg last year, alleging Sanberg committed fraud in how he presented the company’s finances. Those charges did not mention the Clippers.
If the NBA finds the Clippers guilty of circumventing the salary cap for Leonard, the forward’s contract could get voided. The future Hall of Famer would become an unrestricted free agent if that were to happen and free to sign with any team of his choice.
Leonard joined the Clippers in the summer of 2019. Aspiration allegedly paid Leonard $48 million for a no-show job intended to circumvent the NBA salary cap. Clippers owner Steve Ballmer invested $10 million in Aspiration in March 2023. The billionaire had invested $50 million in Aspiration 18 months prior.
Ballmer introduced Aspiration to Leonard in November 2021, three months after the Clippers had agreed to a four-year, $173 million extension with Leonard. Two months earlier, in September 2021, the Clippers announced a lucrative $300 million partnership with Aspiration.
Aspiration paid Leonard $1.7 million days after Clippers minority owner Dennis J. Wong made an almost $2 million investment in the company. This took place in December 2022. Leonard also got $20 million in Aspiration shares directly from co-founder Joe Sanberg.
Ballmer and the Clippers invested $118 million in Aspiration in 18 months. LAC’s chief financial officer signed off on a $21 million payment from the team to fund various carbon projects for Aspiration in June 2022. The $21 million was enough for Leonard’s first quarterly payment as part of his no-show endorsement deal with Aspiration. It also hit Aspiration’s fundraising target.
Torre broke this story last offseason. He reported that Ballmer donated $1.875 million to Aspiration 1.5 years after the Clippers deal ended and Leonard was also personally guaranteed another $20 million in Aspiration equity.
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