A recent report by Pablo Torre revealed that Aspiration, a start-up backed by Los Angeles Clippers owner Steve Ballmer, signed Kawhi Leonard to a $28 million “no-show” endorsement deal. Ballmer reportedly invested $50 million into the company.
While the Leonard deal has already raised eyebrows across the league, another endorsement case has come to light. Ringer’s Howard Beck reported that one NBA team helped engineer a $150,000 endorsement arrangement to convince a player to sign with them.
“A team needed to come up with an extra $150,000 to persuade a free agent to sign. So the GM arranged a $150,000 deal between the player and a local business, requiring the player to make a certain number of promotional appearances. (The team got the player),” Beck wrote.
According to Beck, these types of arrangements are not uncommon in the NBA. They fall within league rules, as teams sometimes connect free agents with sponsors or businesses in their market to help sweeten contract offers through additional endorsement opportunities.
Meanwhile, Leonard’s case is different. But the Clippers immediately denied any wrongdoing in a lengthy statement in Leonard’s case. Ballmer himself also denied all claims, which drew a sharp reaction from Bill Simmons.
Howard Beck Reports Reaction Surrounding NBA Regarding Kawhi Leonard’s Endorsement Deal
Howard Beck noted that around the league, many believe the Clippers crossed a serious line. He described the sentiment from those with NBA experience.
“None of this is normal, according to people around the league. ‘It reeks,’ said a former player who has also worked in a variety of front office roles. The dollar figures alone are ‘extreme,’ said another former team executive, who added that the ‘no-show’ element was ‘a huge red flag’ and ‘smells the most in this whole thing,” Beck wrote.
In response to the controversy, the NBA announced that it will investigate the Leonard deal. To ensure transparency, the league hired the New York law firm Wachtell, Lipton, Rosen & Katz to lead the probe. The outcome could carry major consequences for the Clippers if violations of the CBA’s strict salary cap rules are proven.
The post REPORT: NBA Team Quietly Pulled Off Shady $150K Move To Secure Free Agent originally published on Total Pro Sports.