Aspiration, Ballmer, KL02 – what we know so far

• ‍Los Angeles Clippers: Five things you need to know‍
• Latest News: Read about the NBA here‍
• NBA's Greatest Players in History: Kawhi Leonard

The NBA is investigating a salary-cap breach allegation the Los Angeles Clippers and owner Steve Ballmer paid superstar Kawhi Leonard $28M USD for a "no-show job" with now bankrupt green fin-tech company Aspiration.

The NBA's Mike Bass said in a statement yesterday (AEST) the league was "aware of this morning's media report regarding the LA Clippers and [is] commencing an investigation."

Journalist Pablo Torre, a podcaster and former ESPN contributor, made the accusation on his podcast Pablo Torre Finds Out.

There is no suggestion Aspiration, Ballmer or Leonard breached the salary cap regulations only the NBA is investigating.

What we know so far

• Allegation: $28M no-show endorsement via Aspiration to Kawhi Leonard, potentially cap avoidance
• Investigation: Officially initiated by the NBA
• Denials: Clippers/Steve Ballmer deny wrongdoing; former Dallas Mavericks owner Mark Cuban defends Ballmer
• Legal Evidence: Bankruptcy documents, creditor claims, and Aspiration’s collapse
• Possible Outcomes: Fines, suspensions, draft pick forfeiture, contract nullification

Torre, with a stack of papers on his desk, revealed internal Aspiration documents showed Ballmer invested $50 million via his personal LLC on Sept. 14, 2021. Two-time NBA champion and two-time Finals MVP Leonard re-signed with the Clippers in 2021 on four-year, $176.3 million max contract.

ESPN via Torre's podcast reported: "A clause in one of the documents purportedly obtained by Torre states that the deal between Aspiration and KL2 Aspire would be voided if Leonard left the Clippers."

An anonymous source, whose voice was disguised on the podcast, told Torre: "The single largest payment to an individual for marketing that Aspiration ever made has completely evaded all press. It’s honestly incredible. And it was a very strong pain point for our marketing team. And honestly, like, altruistically, their job is to get Aspiration’s name out there. They don’t understand why the largest part of their budget that they’ve actually blown is not delivering."

The Clippers responded to the accusation yesterday: "Neither the Clippers nor Steve Ballmer circumvented the salary cap.

"The notion that Steve invested in Aspiration in order to funnel money to Kawhi Leonard is absurd. Steve invested because Aspiration’s co-founders presented themselves as committed to doing right by their customers while protecting the environment.

"After a long campaign of market manipulation, which defrauded not only Steve but numerous other investors and sports teams, Aspiration filed for bankruptcy. Its co-founder, Joseph Sanberg, recently pleaded guilty to a $243 million fraud.

"Neither Steve nor the Clippers had knowledge of any improper activity by Aspiration or its co-founder until after the government initiated its investigation.

"Aspiration was a team sponsor for the 2021–2022 and 2022–2023 seasons before defaulting on its contract.

"There is nothing unusual or untoward about team sponsors doing endorsement deals with players on the same team. Neither Steve nor the Clippers organisation had any oversight of Kawhi’s independent endorsement agreement with Aspiration. To say otherwise is flat-out wrong.

The Clippers take NBA compliance extremely seriously, fully respect the league’s rules, and welcome its investigation related to Aspiration.

"The Clippers will also continue to cooperate with law enforcement in its investigation into Aspiration’s blatantly fraudulent activity."

🌱 What Aspiration Claimed to Be

✅ In short: Aspiration was a “green banking” fintech start-up that tried to blend finance and climate activism, hit the NBA through a massive Clippers naming deal, collapsed financially, and is now central to the Ballmer/Clippers investigation.

• Founded in 2013 by Andrei Cherny and Joseph Sanberg.
• Marketed as a sustainable banking alternative, appealing to socially and environmentally conscious consumers.
• Offered:
  • Spend & Save Accounts (checking-style banking).
  • Investment products marketed as “fossil fuel-free.”
  • A credit card promising to offset purchases by planting trees.
  • “Aspiration Plus” subscription service.
• In 2021, Aspiration signed a 20-year, $300 million naming-rights deal with the LA Clippers for their new arena in Inglewood — originally called the Aspiration Center (later rebranded the Intuit Dome when the Aspiration deal collapsed).
• The company also struck marketing partnerships with celebrities and athletes, including the now-disputed $28M Kawhi Leonard endorsement deal.
• Despite raising more than $600 million in venture funding (from investors such as Leonardo DiCaprio and Orlando Bloom), Aspiration’s business model struggled: Few consumers used its products at scale; and its climate-focused promises (tree planting, carbon offsets) were criticised as greenwashing.
• In 2023–2024, the company tried to go public via SPAC but failed.
• By mid-2025, Aspiration had filed for bankruptcy, with creditors including the Clippers and Kawhi Leonard’s entity (KL2 Aspire LLC) still owed millions.

Kawhi Leonard's Contract with the Los Angeles Clippers

• Signed as a free agent: Kawhi departed the Toronto Raptors in 2019 and joined the Clippers, opting out of his final year in Toronto to take that opportunity. ‍
• Re-signed in August 2021: Leonard secured a four-year, $176.3 million max contract, which included a player option in the fourth year.‍
• In January 2024, Kawhi agreed to an extension that further solidified his role with the Clippers:
• The extension spans three years, covering the seasons from 2024–25 through 2026–27.

• Reported values differ slightly depending on sources, with estimates around:
  • $152.4 million (most commonly cited)‍

• The extension spans three years and approximately $149.5 million — with an average annual salary of about $49.8 million, fully guaranteed.

🔎 The Timberwolves – Joe Smith Scandal (2000)

• Background: The Timberwolves secretly agreed to pay forward Joe Smith far below market value for several years, with the promise of a massive contract once the team regained his Bird Rights.
• This “under-the-table” arrangement was designed to save salary cap space while keeping Smith long-term.
• Discovery: The scheme came to light after documents surfaced during Smith’s agent change. The NBA investigated and confirmed the violations.
• Penalties Imposed:
  • $3.5 million fine (a record at the time).
  • Forfeiture of five first-round draft picks (2001–2005). The league later reinstated two, but the Wolves still lost three crucial first-rounders.
  • Joe Smith’s contract voided, making him a free agent.
  • Team executives suspended (including GM Kevin McHale, though he kept his job).
• Impact: The Wolves lost years of roster-building leverage, stunting their ability to build around Kevin Garnett during his prime. Many analysts still argue it permanently set back the franchise.

⚖️ Lessons for the Clippers / Ballmer Case

If the NBA determines that Steve Ballmer and the Clippers arranged a “no-show endorsement” for Kawhi Leonard (via Aspiration) to circumvent the cap:

• Forfeited draft picks are the most likely consequence, given precedent.
• Heavy fines in the multi-millions could be imposed.
• Voiding of contracts (though unlikely with Kawhi due to complexity, it’s not impossible).
• Executive suspensions (GM or ownership could face bans from team operations).
• Damage to the team’s ability to compete in the near future — just as it crippled Minnesota in the 2000s.

⚠️ Key Differences Now

• The CBA has updated rules and penalties, and the NBA has more modern compliance systems.
• The league may also want to set an example in a high-profile, billion-dollar ownership era (Ballmer, Intuit Dome, L.A. market).
• The involvement of a bankrupt third-party company (Aspiration) adds a legal/economic wrinkle that wasn’t in the Joe Smith case.