The NBA has officially retained powerhouse law firm Wachtell, Lipton, Rosen & Katz to investigate allegations of salary cap circumvention involving the Los Angeles Clippers and star forward Kawhi Leonard. The move signals that the league is treating the situation with the utmost seriousness, and for good reason.
The controversy centers around Leonard’s $28 million endorsement deal with Aspiration, a now-bankrupt environmental finance company allegedly funded by Clippers owner Steve Ballmer. According to former Aspiration employees and documents obtained by journalist Pablo Torre, the deal was a “no-show job” designed to funnel money to Leonard while skirting NBA salary cap rules.
Ballmer has denied any wrongdoing, claiming he was duped by Aspiration executives and had no involvement in the specifics of Leonard’s contract. Nevertheless, the league has launched a full-scale investigation, and Wachtell Lipton’s involvement suggests the stakes could be enormous.
Wachtell Lipton is no stranger to NBA scandal. The firm previously led the investigations into:
- Donald Sterling (2014): The former Clippers owner was banned for life after racist remarks surfaced, leading to a forced sale of the team.
- Robert Sarver (2022): The ex-Suns owner faced allegations of repeated inappropriate conduct, resulting in a one-year suspension and eventual sale of the franchise.
In both cases, Wachtell Lipton’s findings reshaped the league’s ownership landscape. Their reputation for thorough, no-nonsense investigations makes them a formidable presence in this latest probe.
If the investigation confirms that the Clippers used Aspiration to funnel off-the-books payments to Leonard, the team could face severe penalties:
- Fines and sanctions
- Loss of draft picks
- Potential voiding of contracts
The NBA is reportedly working with its own internal investigators alongside Wachtell Lipton to comb through documents, interview key figures, and trace financial transactions.
This case has already drawn comparisons to the infamous Joe Smith scandal, where the Minnesota Timberwolves lost multiple first-round picks for a secret contract arrangement. Whether the Clippers’ situation rises to that level remains to be seen, but the league’s swift and serious response suggests it’s bracing for impact.
