Los Angeles Clippers owner Steve Ballmer is facing a serious legal challenge from 11 former investors in the financial firm Aspiration, who allege that Ballmer used the company to covertly funnel money to Kawhi Leonard in violation of league salary cap rules. The lawsuit, first reported by journalist Pablo Torre, accuses Ballmer of orchestrating a hidden financial arrangement designed to induce Leonard to re-sign with the Clippers.
According to the complaint, Ballmer allegedly transferred funds through Aspiration to Leonard as part of a covert compensation scheme. The plaintiffs claim this arrangement was intended to supplement Leonard’s official NBA salary, which is subject to strict league-imposed limits.
“These funds would be channeled through [Aspiration] to Leonard so that Ballmer could induce Leonard to re-sign with the Clippers by covertly paying him more than allowed by the NBA’s salary cap rules,” the lawsuit states.
The investors argue that Ballmer’s actions not only violated NBA regulations but also defrauded them by misrepresenting the nature of his investment in Aspiration.
The complaint further alleges that Ballmer was “complicit in and aided and abetted [co-founder Joe] Sanberg’s fraud for his own self-serving purpose.” It claims that without Ballmer’s financial backing, Aspiration would not have been able to sustain the alleged scheme.
“Absent Ballmer’s support, [Aspiration] could not have sustained the frauds set forth herein,” the plaintiffs assert.
They also contend that Ballmer transferred additional funds to Aspiration to keep the company afloat and to secure Sanberg’s “support, cooperation and silence” regarding the secret deal with Leonard.
The investors say they would not have invested in or maintained their stake in Aspiration had they known about Ballmer’s alleged intentions. The lawsuit seeks damages and full disclosure of the financial transfers between Ballmer, Aspiration, and Sanberg.
“Plaintiffs allege that Ballmer transferred other funds to [Aspiration] to keep the company afloat and buy Sanberg’s support, cooperation and silence about the secret deal with Leonard,” the complaint reads. “The full extent of Ballmer’s transfers of funds to [Aspiration] and Sanberg will be ascertained in discovery”.
If proven true, the allegations could have major implications for the Clippers and the NBA. Salary cap circumvention is a serious violation that could result in fines, loss of draft picks, or voided contracts.
