This weekend, the lights are set to shine bright at the Intuit Dome as All-Star festivities roll into Los Angeles, all thanks to Clippers owner Steve Ballmer and the league’s newest arena, which came with a hefty price tag of over $2 billion.
On the court, Kawhi Leonard is having one of the most efficient seasons of his career. But off the court, the franchise is in a bit of a holding pattern.
The NBA’s investigation into the Clippers and Leonard regarding potential salary cap violations tied to the environmental firm Aspiration is ongoing. The independent review is being conducted by the law firm Wachtell, Lipton, Rosen & Katz. According to reports, the results are not expected until after the All-Star break.
That timing keeps the spotlight on Los Angeles during one of the league’s biggest weekends.
In publicly available bankruptcy filings reviewed by The Athletic, Aspiration lists the Clippers as being owed $30 million. Forum Entertainment, also owned by Ballmer, claims it is owed $11 million. Leonard’s limited liability company, “KL2 Aspire,” claims a debt of $7 million.
Leonard registered KL2 Aspire in November 2021. His reported $28 million endorsement contract with Aspiration began in April 2022. By December of that year, Aspiration was facing financial trouble. Clippers minority owner Dennis J. Wong invested $2 million into the company. Shortly after, Aspiration paid Leonard $1.75 million, matching a quarterly payment in his contract. Months later, Ballmer invested an additional $10 million as part of a fundraising round in which Wong was reportedly the only new investor.
Those transactions are central to the league’s review into whether any arrangement constituted improper benefits connected to Leonard’s Clippers contract.
Commissioner Adam Silver will ultimately determine whether discipline is warranted. Potential penalties, if violations are found, could include fines up to $7.5 million, loss of draft picks, suspension of team officials or even voiding Leonard’s contract. No findings have been announced.
The Clippers' season has been quite a rollercoaster. They kicked things off with a rough 6-21 record but bounced back to 26-28 heading into the break. At the trade deadline, the team made some big moves, sending James Harden to Cleveland in exchange for Darius Garland and trading Ivica Zubac to Indiana, which brought back Bennedict Mathurin, Isaiah Jackson and a handful of draft picks.
Leonard remains the team’s steady force. Through 41 games, he is averaging 27.9 points, 6.4 rebounds, 3.7 assists and 2.1 steals while shooting 49.1% from the field, 38.3% from three, and 91.2% at the line.
The Clippers are trying to climb back into a playoff position while the league is trying to protect competitive balance and the salary cap. Once the All-Star spotlight fades, the focus could quickly shift to the findings of Wachtell’s report and what it could mean for Leonard, Ballmer and the direction of the franchise.