The National Basketball Association (NBA) has publicly disputed an ESPN report detailing the alleged outcomes of its investigation into the Los Angeles Clippers' potential salary cap circumvention related to the acquisition of Kawhi Leonard. The league issued a strong statement Monday, asserting that ESPN's reporting contained "numerous and significant inaccuracies."
According to ESPN's report, which the NBA stated it did not cooperate with, the league could not find evidence that Clippers owner Steve Ballmer bypassed the salary cap through team sponsorships to facilitate Leonard's signing. The report also indicated that both the NBA and the Clippers were reportedly negotiating a resolution to the investigation.
However, NBA spokesperson Mike Bass stated, "The results in this matter will be made clear once the investigation is concluded." The league did not specify which aspects of the ESPN report it found to be inaccurate.
The investigation centers on allegations that the Clippers may have violated league rules by providing Leonard with approximately $28 million through a "no-show" endorsement deal with team sponsor Aspiration, a company partly funded by Ballmer that has since gone bankrupt. ESPN's reporting suggests the NBA is examining whether introducing Leonard to team sponsors constitutes a violation of salary cap rules and if the Clippers failed to adequately supervise their employees.
These allegations first surfaced in a report last September. In addition to Aspiration, three other companies that entered into sponsorship agreements with the Clippers are reportedly involved in the ongoing probe. Notably, the co-founder of Aspiration is currently serving a prison sentence after pleading guilty to fraud charges totaling $248 million.
The Clippers organization, in a statement to ESPN, acknowledged introducing players, including Leonard, to companies with business relationships. The team described this as a common practice among NBA teams and a frequent request from players and their representatives. The Clippers asserted that they did not negotiate or dictate the terms of Leonard's endorsement deals and that a player-company business relationship does not inherently prove salary cap circumvention.
The outcome of the NBA's investigation also impacts a pending trade. The Toronto Raptors agreed in June to acquire Leonard from the Clippers, but the deal remains on hold. The NBA informed the Raptors that they would "assume the risk of any potential outcome of the investigation." A statement from the Raptors indicated their intention to wait for the league's investigation to conclude before finalizing the trade.