Los Angeles Clippers owner Steve Ballmer is fully supportive of the NBA's decision to investigate Kawhi Leonard's $28-million "no-show" endorsement deal with Aspiration.
Aspiration is a "green bank" and tree planting company that received a $50-million investment from Ballmer and is currently under federal investigation for fraud. It was reported earlier this week by journalist Pablo Torre that the Clippers circumvented the league's salary cap by paying Leonard through the third-party company.
Ballmer said Aspiration asked to be introduced to Leonard in November 2021, three months after the two-time Finals MVP signed a four-year, $173-million extension to remain in L.A. But the former Microsoft CEO said he was unaware of the financial terms of their endorsement deal nor gave the now-bankrupt company any direction to sign the Clippers forward to such a contract.
"These were guys who committed fraud," Ballmer told ESPN's Ramona Shelburne. "Look, they conned me. They conned me. I made an investment in these guys thinking it was on the up-and-up, and they conned me at this stage. I have no ability to predict why they might have done anything they did, let alone the specific contract with Kawhi."
Leonard also secured a side deal with Aspiration to receive an additional $20 million in company stock, a source told John Karalis of The Boston Sports Journal. The stock was reportedly to be paid out from Aspiration co-founder Joseph Sanberg's personal holdings in the company over four years.
Sanberg pleaded guilty in August to defrauding investors and lenders of more than $248 million.
The Clippers agreed to a $300-million partnership with Aspiration in September 2021, which included sponsorship in the Intuit Dome and the team's jersey patch.
Ballmer said he was "embarrassed" he didn't notice any red flags before doing business with the company.
"I reviewed, my staff reviewed primarily fraudulent financials," Ballmer said. "Now, should I have sniffed it out? Maybe I feel embarrassed and kind of silly that I didn't sniff it out, but I didn't.
"I made the investment. A lot of other smart investors didn't sniff it out either."
Ballmer also denied that Leonard's camp - led by his uncle Dennis Robertson - asked for any additional benefits that went against the NBA's rules.
The league reportedly investigated Leonard's free-agency negotiations in 2019 over allegations that Robertson asked teams for "improper benefits" that would violate the CBA. However, the NBA concluded that there was no evidence that the Clippers had granted any of those requests.
"They know the rules. They meaning Kawhi and his representatives, including his uncle," Ballmer said. "We know the rules. And if anything's not clear, we remind ourselves what the rules are and we make absolutely clear we're going to abide by those rules and they understand them as well. And it's important for them to abide by them, which they have."
