There is simply too much circumstantial evidence at this point. The paper trail the “Pablo Torre Finds Out” podcast has uncovered linking the Los Angeles Clippers with the financial technology and sustainable services company Aspiration to possible circumvention of the cap to pay Kawhi Leonard under the table is overwhelming.
The details reported in the last week or so takes the circumstantial evidence into legitimate scandal territory. Clippers vice chairman Dennis Wong sending $2 million to Aspiration and $1.75 million then subsequently being funded to Leonard’s account was red flag No. 1.
Next came the additional $10 million investment by Clippers owner Steve Ballmer in March 2023 (he invested $50 million 18 months prior) when Aspiration was already bleeding money and laying off employees. To cap it all off, Torre has now revealed the Clippers sent nearly $21 million in June 2022 to Aspiration to fund carbon projects, having just given $35 million a couple months prior — which conveniently coincided with Leonard’s $28 million endorsement agreement with Aspiration.
All of this is wrapped around reporting from both Los Angeles and Toronto circles that Leonard’s uncle, Dennis Robertson, was seeking exactly this type of “no-show” compensation during free agency negotiations.
Now, to be sure, it is circumstantial evidence. There is still enough lawyers can work around to somewhat protect Ballmer and the Clippers. That being said, the key to all this rests in the league’s CBA’s language on violations of salary cap circumvention.
“[A] violation… may be proven by direct or circumstantial evidence, including, but not limited to, evidence that a Player Contract or any term or provision thereof cannot rationally be explained in the absence of conduct violative of [the circumvention provision of the CBA].”
Timeline Of Events Involving Clippers, Ballmer, Leonard, Aspiration
August 2021 – Kawhi Leonard agrees to four-year, $176 million extension with Clippers
September 2021 – Clippers agree to 23-year, $300 million deal with Aspiration
September 2021 – Steve Ballmer invests $50 million in Aspiration
April 2022 – Kawhi Leonard agrees to four-year, $28 million endorsement with Aspiration
April 2022 – Clippers invest $35 million in Aspiration to fund carbon credits
June 2022 – Clippers invest $21 million in Aspiration to fund carbon credits
December 2022 – Dennis Wong invests $1.99 million in Aspiration
December 2022 – Kawhi Leonard receives $1.75 million from Aspiration
March 2023 – Steve Ballmer invests additional $10 million in Aspiration
March 2023 – Federal investigation into Aspiration begins
What Happens Next?
We have not yet arrived — and will not arrive — at the 2000 Joe Smith-Minnesota Timberwolves set of circumstances as long as there isn’t concrete or direct evidence of cap circumvention.
Currently, New York-based law firm Wachtell, Lipton, Rosen & Katz (WLRK) has been hired by the NBA and is conducting its investigation. According to Sportico, the investigation will not be completed before the 2026 All-Star Break. That means the Clippers will host All-Star Weekend at Intuit Dome from Feb. 13-15, 2026.
Upon completion, NBA commissioner Adam Silver will receive the investigation’s findings and assess a judgment. He can either determine there isn’t enough evidence and close the case or determine there is a legitimate case for cap circumvention and seek an arbiter to confirm it.
He can also conclude there is cap circumvention and look to agree with the Clippers and the union that a suitable punishment be applied without seeking an arbiter.
Circumstantial Evidence Creating Point Of No Return
The threshold of circumstantial evidence being mere coincidence is either approaching or has already been surpassed. The timeline of incriminating transactions, particularly between April 2022 and March 2023, is too on the nose.
It could still be legally defended but no longer publicly accepted. The seriousness with which cap circumvention is supposed to be examined takes this closer to an all-or-nothing scenario for Silver.
Whenever the investigation is complete, in the absence of direct evidence, Silver will confirm either the circumstantial evidence is too much to ignore or overrule the CBA’s language and deem circumstantial evidence unsuitable for this judgment.
Silver does not have the option of landing somewhere in the middle because that’s the reality of cap circumvention. It’s either deemed to be violated or it isn’t. In terms of public perception, assigning minor penalties would be both an admission there was wrongdoing but also an admission Ballmer means too much to the league to punish severely.
Ballmer’s name and financial power give him significant leeway in any allegations against him and the Clippers. Silver’s relationship with Ballmer and other owners potentially hangs on the extent to which he is willing to consider circumstantial evidence.
“In the case of the league and our investigators, we look at the totality of the evidence,” Silver said after the Board of Governors meeting a week ago. “Whether mere appearance — just by the way those words read — I think as a matter of fundamental fairness, I would be reluctant to act if there was only a mere appearance of impropriety.
“I think the goal of a full investigation is to find out whether there was impropriety.”
Totality Of Evidence Vs. Totality Of Integrity
While Silver indicates he would be reluctant to act without direct evidence, he also knows there’s more at stake here.
“I accept, ultimately, my responsibility is the integrity of this league, especially when it’s a competitive issue.” Silver said. “We’ve had other larger investigations. But to be honest, even when it involves misconduct of owners, it doesn’t get fans’ attention of 30 teams in the way something does where there’s a suggestion there’s an un-level playing field.”
Among the big decisions he’s made have been to ban former Clippers owner Donald Sterling for life and support the players as best he could during the wildcat strike that occurred after the police shooting of Jacob Blake in 2020. He also suspended former Phoenix Suns owner Robert Sarver for a year due to cases of racism and misogyny. Former player Jontay Porter was banned for life after violating gambling policies.
Other situations have left question marks. Referee Eric Lewis was found to have improper tweets via a burner account. As the investigation was being conducted, Lewis suddenly retired and the investigation was closed without a conclusion. We have no concrete answers on what happened there.
There are domestic abuse/sexual assault case examples like Charlotte Hornets forward Miles Bridges in which the punishment does not seem to fit the crime. Malik Beasley and Terry Rozier are currently embroiled in their own respective gambling allegations.
A section of the league’s fan base also questions everything surrounding the Luka Doncic trade from the Dallas Mavericks to Los Angeles Lakers. One of the faces of the league, on the back of leading the Mavericks to the NBA Finals, gets traded to a marquee team in the Lakers. On top of that, the Lakers then get sold for a record amount while the Mavs end up with the top pick in the 2025 NBA Draft, despite a 1.8 percent chance of winning the lottery.
It all adds up to a certain degree of mistrust from fans. As he navigates this Clippers situation, Silver will show his hand in how much that matters.
Consequences Of Silver’s Choices Moving Forward?
If Silver deems the circumstantial evidence inadequate and leaves the Clippers unscathed, other owners will view this as a potential loophole to circumvent the cap moving forward. Would this be the equivalent of MLB’s steroid era except with money? How would fans take to that?
That’s not to say it isn’t happening elsewhere already. This Leonard example will serve as a template of what other teams can and can’t get away with moving forward. If Silver severely punishes the Clippers, it will strain the relationship between the NBA and the richest owner in North American sports. The league will also earn back a degree of public trust.
Silver has to always be mindful of the tug and pull between business and ethics. The Sterling, Sarver and Porter cases were clear-cut, so they weren’t the truest reflection of his subjectivity. But the Clippers’ case isn’t clear-cut and will definitively outline where Silver stands, marking an important moment in his tenure as commissioner.
