This seems really bad (Kawhi cap circumvention)

[og15]

Biggest disaster signing ever is Kawhi. Everything that can go wrong has gone wrong, from SGA becoming a superstar to choke vs Nuggets, to constant injuries to this nonsense.

All that and he led the team to the 2nd round as his top accomplishment. PG led them to the WCF as Kawhi was on the IR. ROI has been negative.

[wco81]

I am beyond done with Kawhi. I don't know how anyone isn't. It's been nothing but drama with him and nowhere near enough success to make it worth it.

To me Kawhi ranks #2 all time when it comes causing destruction to this franchise. I think you already know who ranks #1.

For me, Sterling is obviously #1, Doc is #2 and Kawhi is #3. But if we lose a bunch of draft picks from this, Kawhi moves up to #2.

How is this KL's fault?

If Ballmer was able to retain KL at a lower salary on the books than otherwise, the owner was circumventing the cap and avoiding luxury taxes.

If Ballmer offers him this deal, what is KL suppose to do, not take it? Or narc on the Clippers? Sign a "legitimate" contract with another team?

He's the richest owner in the NBA, maybe the richest in all of sports except for the sovereign wealth funds which own big English PL and European soccer teams.

Yet if he consciously engaged in a scheme to pay KL off the books in return for a lower AAV contract, he was cheating.

[og15]

To me Kawhi ranks #2 all time when it comes causing destruction to this franchise. I think you already know who ranks #1.

For me, Sterling is obviously #1, Doc is #2 and Kawhi is #3. But if we lose a bunch of draft picks from this, Kawhi moves up to #2.

How is this KL's fault?

If Ballmer was able to retain KL at a lower salary on the books than otherwise, the owner was circumventing the cap and avoiding luxury taxes.

If Ballmer offers him this deal, what is KL suppose to do, not take it? Or narc on the Clippers? Sign a "legitimate" contract with another team?

He's the richest owner in the NBA, maybe the richest in all of sports except for the sovereign wealth funds which own big English PL and European soccer teams.

Yet if he consciously engaged in a scheme to pay KL off the books in return for a lower AAV contract, he was cheating.

Kawhi, or at least Uncle Dennis in representation of Kawhi was clearly noted for asking teams for additional perks, it wasn't a secret. They asked for additional perks from everyone. They told the Clippers they had to trade for Paul George for him to sign. Remember that they had also tried to coerce the Raptors into trading for Westbrook and PG to convince him to sign, but Masai did not want to do it.

There was even report that the Raptors owner was looking into how to get additional sponsor money as part of the pitch/offer to Kawhi, which is against the CBA also.

Ballmer isn't the originator of this. Look up the Knicks almost signing Jordan, the contract plus sponsorship deal.

Lakers had Time Warner in their pitch to Camelo in 2014 talking about media opportunities, and while the NBA doesn't explicitly disallow that, it toes the line of additional perks along with contract, but there are ways of getting around it with your connections.

Dwight had Comcast execs and a deal with Comcast Houston that was connected to him signing with the Rockets, but again, you can wiggle around the legality with what is offered and being around fair market value and all this stuff, even though it's technically not legal in the CBA to have any additional perks connected to the contract signing and pitch.

Ballmer's problem would be the blatant way this presents.

[wco81]

OK if it's proven that KL or Uncle Dennis asked for money beyond the contract, then he is culpable.

But the Clippers still are responsible for participating in a scheme which was against the CBA.

Not sure how the league would penalize KL though. They would certainly be able to penalize the team.

However, it may turn out that this arrangement, if there was an arrangement between the team and KL, may not be unique. It may be more common practice than people realize. That wouldn't necessarily prove one way or another whether KL asked for more than what the Clippers were able to pay him on an official NBA contract or what they wanted KL's cap numbers to be.

[og15]

OK if it's proven that KL or Uncle Dennis asked for money beyond the contract, then he is culpable.

But the Clippers still are responsible for participating in a scheme which was against the CBA.

Not sure how the league would penalize KL though. They would certainly be able to penalize the team.

However, it may turn out that this arrangement, if there was an arrangement between the team and KL, may not be unique. It may be more common practice than people realize. That wouldn't necessarily prove one way or another whether KL asked for more than what the Clippers were able to pay him on an official NBA contract or what they wanted KL's cap numbers to be.

Clippers in the end still make the decision, so they can't escape culpability, but I think there was even some record of Uncle Dennis contacting the company to get their payments or something that was mentioned, I haven't followed the whole thing that intensely.

But it is known around the league and confirmed by multiple people that they were asking everyone for these perks.

[Bobbymcgee]

Ballmer made a shady deal using shady people and it came back to bite him in the butt.

That explains why Ballmer extended Leonard mid-season but low-balled George the following summer.

What a mess. I have a feeling that this will pretty much tank the upcoming season.

I feel bad for CP3. He had to deal with the Sterling nonsense and now he comes back to the Clippers to deal with this.

[TrueLAfan]

Ballmer made a shady deal using shady people and it came back to bite him in the butt.

That explains why Ballmer extended Leonard mid-season but low-balled George the following summer.

What a mess. I have a feeling that this will pretty much tank the upcoming season.

I feel bad for CP3. He had to deal with the Sterling nonsense and now he comes back to the Clippers to deal with this.

Wellll ... tbh, I think/thought the offer PG got was pretty fair. I don't think this whole mess had a whole lot, if anything, to do with that.

But I do think this is going to affect us this season. The thing that pisses me off is the person it will probably affect the least is Kawhi. Kawhi kind of operates in his world, you know? He's fairly supportive and doesn't make many gaffes, but he's--not there in the same way a lot of players are. Of course, some players are jerks and hurt the team with their attitude. Kawhi isn't like that. But he never seems like he's actively a part of things. One of the things this team needs is leadership. And we get little of that from Kawhi, and we'll get a negative amount this year. And it will somehow not affect him. That pisses me off.

Do I this all is true? Pretty much, yeah. Do I think we'll get some form of punishment? Yeah. Do I think it will be huge and dramatic? No--because I also think this practice is sadly and unfortunately fairly common. I don't think owners are going to want a huge punishment to set a precedent for can/could/will happen to them.

[MartinToVaught]

How is this KL's fault?

He demanded the perks, he took the money. He is equally as culpable as Ballmer. This is also far from the first issue we've had with him. There is ALWAYS drama behind the scenes with him and Uncle Dennis. He has never been worth the demands, the headaches, the scandals. We would be incalcuably better off as a franchise right now if he had just stayed in Toronto.

[wco81]

How is this KL's fault?

He demanded the perks, he took the money. He is equally as culpable as Ballmer. This is also far from the first issue we've had with him. There is ALWAYS drama behind the scenes with him and Uncle Dennis. He has never been worth the demands, the headaches, the scandals. We would be incalcuably better off as a franchise right now if he had just stayed in Toronto.

He can demand all he wants.

It’s on the team whether to grant all those. They said no to PG. they could have done the same to KL.

If Ballmer laundered under the table payments to Kawhi through this company, the league better throw the book at Ballmer.

But he’s still a billionaire so it’s going to be at most an 8 figure fine and maybe some draft picks, even though Clips don’t have a lot of draft assets.

At the end of the day, Silver works FOR the owners and they want those billionaires to keep bidding up franchise values.

[MartinToVaught]

He can demand all he wants.

Kawhi should know better than to demand things that teams cannot provide under the rules. Especially after all the other BS he had already put the Clippers through in exchange for the five games per season he bothers to play in. This isn't just a one-off scandal, it's been a constant escalation of BS and drama that never seems to be enough for him.

Kawhi is absolutely a villain in this situation. We already have to watch OKC become a dynasty with what should have been our roster because of him, and now his greed and selfishness are going to screw the team long after he's gone.

It’s on the team whether to grant all those.

Which is why I said Ballmer is equally culpable. Nobody should be asking or agreeing to circumvent the salary cap. It's wrong on both sides.

[madmaxmedia]

Can someone explain how this deal would have been to circumvent the salary cap, when the Clippers signed him to a max extension that year? (obviously I'm not saying that makes it okay or anything.) In any case, to extend him on a max when he's recovering from a torn ACL, and have to also pay him an extra $28M sweetener seems crazy.

Here are some other details on the 2021 signing. Maybe they kicked him the extra $28M to make a straight 4 year deal the best choice? But again, the whole thing seems so unnecessary and not worth the risk. Like, what- Ballmer is asking Kawhi to sign a 4 year deal and then says, "I gotta take a leak, BTW have you met our tree guy? I'll be right back."

Leonard could have signed a four-year, $187 million extension had he opted into the $36 million he was set to earn in the 2021-22 season. But he opted for free agency.

As a free agent, Leonard chose a longer-term deal instead of potentially signing a two-year, $82 million deal with a player option in 2022-23 and becoming a free agent again in 2022, which would have made him eligible to sign a five-year, $235 million max contract with the Clippers, according to ESPN's Bobby Marks.

https://www.espn.com/nba/story/_/id/32010790/la-clippers-sign-kawhi-leonard-4-year-1763-million-deal

[esqtvd]

If they wanted to punish him, the NBA could VOID the remaining 2yr/$100M on his contract. I suppose someone else could offer him the same, but I doubt any top contender has that much cap room or if he's worth that much to anybody at this point. In any case, Kawhi has to appear before the commissioner and answer some questions: Who initiated contact? Did Ballmer or the Clippers assist? Before or after you signed the new contract? Did you form a separate company to receive payments? How and why?

And as noted before, suspending Ballmer from ANY contact with the team for a year or two would sting badly if he's implicated.

Something definitely stinks here--who or what stinks is TBD.

[og15]

He can demand all he wants.

Kawhi should know better than to demand things that teams cannot provide under the rules. Especially after all the other BS he had already put the Clippers through in exchange for the five games per season he bothers to play in. This isn't just a one-off scandal, it's been a constant escalation of BS and drama that never seems to be enough for him.

Kawhi is absolutely a villain in this situation. We already have to watch OKC become a dynasty with what should have been our roster because of him, and now his greed and selfishness are going to screw the team long after he's gone.

It’s on the team whether to grant all those.

Which is why I said Ballmer is equally culpable. Nobody should be asking or agreeing to circumvent the salary cap. It's wrong on both sides.

Well, definitely wouldn't say that, lol.

A lot of things went into them having that roster, and the Clippers wouldn't have been bad all those years like OKC to get that roster, but we certainly would have their best player, that's the only thing we do know.

[Clemenza]

Well this takes on a whole new meaning in 2025

Watch on YouTube

[MartinToVaught]

If they wanted to punish him, the NBA could VOID the remaining 2yr/$100M on his contract.

I'm at the point where I'm hoping the league does that. It wouldn't even feel like a punishment. Being forced to rip the band-aid off and move on from the Kawhi era would be a blessing in disguise, and sadly this looks like the only way it'll happen anytime soon. Left to his own devices, Ballmer will continue to do increasingly desperate and stupid things to keep Kawhi here until he retires - and keep us trapped in this circus of drama - because he's too deep into the sunk-cost fallacy to see reason.

Not trading Kawhi at the deadline last year was organizational malpractice.

[wco81]

Did Ballmer do himself any favors with that interview?

[Clemenza]

Did Ballmer do himself any favors with that interview?

Nope, not at all. He should have the best legal team and advisory personal on the planet. How he and his camp came to the conclusion to do this is beyond me.

[Roscoe Sheed]

What was so bad about the interview? He didn't implicate himself or the team in terms of circumvention- yes, he admitted making the introduction, but he stated nothing about the sponsorship being a way of flouting the cap. It was a bit disappointed that he stated he got swindled- he should have investigated more before investing in that company

[esqtvd]

What was so bad about the interview? He didn't implicate himself or the team in terms of circumvention- yes, he admitted making the introduction, but he stated nothing about the sponsorship being a way of flouting the cap. It was a bit disappointed that he stated he got swindled- he should have investigated more before investing in that company

Aspiration was a green company, and Ballmer's a liberal. Selling carbon credits, planting trees to remove CO2 from the atmosphere? What's not to like? $50M is tip money to him. He probably spent a half hour at most on the whole thing.

As far as I can figure Aspiration was fraud, maybe not a Ponzi Scheme, but pretty close. One of the secrets is to round up famous investors so the non-famous feel comfortable giving them their money. They paid Kawhi for the use of his name in rounding up new investors.

I thought Ballmer cleared himself and expect no further repercussions.

Remember this?

The 2022 Super Bowl was dubbed the "Crypto Bowl" due to the wave of cryptocurrency advertisements featuring A-list celebrities. Companies like FTX, Coinbase, Crypto.com, and eToro aired high-profile ads with stars like Larry David, LeBron James, Matt Damon, and Tom Brady. These ads, costing up to $7 million for 30 seconds, aimed to mainstream crypto by leveraging celebrity appeal and FOMO (fear of missing out) messaging, like Crypto.com’s “fortune favors the brave” campaign.

However, the crypto industry faced significant fallout later that year, most notably with the collapse of FTX. By November 2022, FTX, one of the largest crypto exchanges, filed for bankruptcy after a liquidity crisis sparked by concerns over its balance sheet. Its founder, Sam Bankman-Fried, was arrested and charged with defrauding customers out of billions, with his trial set for October 2023. The crash wiped out significant user funds, and celebrities like Larry David, Tom Brady, and Stephen Curry were named in a lawsuit claiming their endorsements promoted FTX’s flawed business model.

[clipperlover]

The Torre investigation is citing employees within the company as saying this was to circumvent the cap. However, that is just hearsay. Where was that information coming from? Likely, a higher up that was directly involved in scamming many people and companies out of millions. Going to have to see some solid evidence the Clips/Ballmer knowingly set up a cap circumventing contract.

What else was happening at this time?
Companies were trying to come back from the COVID shutdowns and re-coup money quickly
Company financials were less reliable because of COVID
Government had just increased spending by another $1.9T and was flooding the economy with money
Interest rates were at historic lows
Money going to social causes was trendy and easy to sell
Sam Bankman-Fried was also scamming wealthy people


So, Ballmer invests $50M by paying more than other investors per share. However, Ballmer has a history of overpaying (e.g. Clippers, Forum) when it suits his interests. Ballmer then uses a Clippers sponsorship as a hedge to protect his Aspiration investment. The sponsorship averaged about $13M year, so Ballmer's $50M would have been covered in just 4 years. Cuban was using Mavs to boost his Shark Tank investments, so Ballmer doing an endorsement hedge isn't surprising. Wealthy people falling for investment scams during that time has come to light multiple times.

Aspiration, likely in an effort to keep up the facades, decides to double down on its Clippers sponsorship and lock down a deal with the Clippers star player. Likely, a small price to pay for letting future wealthy investors know their Clippers connections. $7M/yr was small potatoes if they could keep pulling in investors.

According to the BSJ article linked below:
Kawhi's Aspiration deal:
$28M over 4 years with quarterly payments. Or, 16 payments of $1.75M each.
$20M in stock from Joseph Sanberg's (Founder) shares
Signed by the CEO Andrei Cherny (Founder)

Sanberg has pleaded guilty to fraud and Kawhi's company never received any stock. Cherny has not been charged with fraud yet.

Kind of interesting that Bankman-Fried was tightly tied into the Democratic National Committee and Andrei Cherny has been working with the highest levels of the Democratic Party from the Clinton Administration days to today. Joseph Sanberg also explored running for President in 2020. Sanberg helped invest $138M into Blue Apron from Nov 2021 - May 2022. All three are guys are tied to huge financial fraud operations occurring around the same time frame.

I think people should truly investigate those threads. Was a large portion of this fraud money getting funneled back into political contributions (e.g. merger approval)? A lot of threads to pull on there.

https://www.bostonsportsjournal.com/2025/09/04/exclusive-kawhi-leonard-endorsement-deal-that-triggered-nba-investigation-actually-worth-48-million
https://www.thestreet.com/investing/nba-clippers-300-million-dollars-sponsorship-from-aspiration - Leads you down the rabbit hole of InterPrivateFinancial partners and Aspiration
https://www.marketscreener.com/quote/stock/INTERPRIVATE-III-FINANCIA-122045502/news/Aspiration-Partners-Inc-cancelled-the-acquisition-of-InterPrivate-III-Financial-Partners-Inc-from-45003542/
https://pdsoros.org/fellows/andrei-cherny/
https://pdsoros.org/andrei-cherny-how-im-shaping-culture/
https://insights-engine.refed.org/capital-tracker/funders/joseph-sanberg---los-angeles-california?backTo=%2Fsolution-provider-directory%2Fresq---other-finland

A lot more historical articles to read up about those guys at that company. Based on what has come out about that company and its founders, I doubt there was any wrongdoing on Ballmer or Kawhi's part.