Kawhi Leonard addresses the Kawhi Leonard circumvention allegations publicly

Kawhi Leonard spoke Monday at Clippers media day about reports tying his endorsement deal to an NBA investigation. He said he did not receive all the money he was owed from a California company he had a deal with, but insisted there was no wrongdoing. Leonard said the league will do its job and that the matter will not be a distraction for him or the team.

Kawhi Leonard circumvention allegations — what was reported

Journalist Pablo Torre reported that the team violated salary cap rules involving a $28 million endorsement contract between Leonard and Aspiration Fund Adviser LLC. The deal and related team activity prompted the NBA to hire an outside firm to investigate. Leonard called the claims inaccurate and pointed out the company had already gone bankrupt.

Clippers’ response and support for Leonard

The team strongly denied that any rules were broken and welcomed the investigation. Lawrence Frank, the Clippers’ president of basketball operations, read a statement saying the assumptions and conclusions were disappointing and upsetting. Frank said the team is eager for the truth to come out and is confident the investigation will show the allegations are wrong.

Aspiration, Ballmer and the partnership

Clippers owner Steve Ballmer invested $50 million in Aspiration and the company and the team announced a $300 million partnership in September 2021. That announcement came about a month after Leonard signed a four-year, $176 million extension with the Clippers. The team later ended its relationship with Aspiration after two years, saying the contract was in default.

Fraud charges against Aspiration’s co-founder

Aspiration’s co-founder, Joseph Sanberg, agreed to plead guilty in August after facing federal wire fraud charges. Prosecutors said he defrauded investors and lenders of $248 million and that Aspiration’s financial statements overstated revenue. Frank called it a case of widespread fraud with many victims.

Payments owed and Leonard’s account

Aspiration owed Leonard about $7 million of the $28 million deal when the company filed for bankruptcy. Leonard said he did not receive the money and referred to the situation as fraud. He added that the company had gone belly up and that these events were not new to him.

Questions about exchanges and roles

Reporters raised whether Leonard did anything in exchange for payments and whether his uncle, Dennis Robertson, sought extra benefits that could violate the salary cap. Leonard responded, “I don’t think it’s accurate” that he did nothing. Frank said Dennis Robertson, Leonard, and agent Mitch Frankel know the rules.

Potential penalties if cap rules are broken

If the league finds cap circumvention, penalties could be stiff. The NBA can fine a team up to $7.5 million, void contracts, and require the forfeiture of future draft picks. The league has previously looked into claims about Leonard’s representatives asking for certain perks when he was a free agent.

Team stance and next steps

Frank emphasized the team’s confidence and eagerness for revealing the full picture. The NBA’s outside firm will continue the investigation as the club and Leonard await findings. Leonard said he does not read headlines or conspiracy theories and remains focused on the upcoming season as the Clippers open training camp.

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