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Troubles continue for this NBA superstar: new explosive revelations in $30 million fraud case

The salary cap circumvention case involving Kawhi Leonard and the Los Angeles Clippers takes a new turn with disturbing revelations about a $2 million strategic investment made by a minority owner of the franchise.
Troubles continue for this NBA superstar: new explosive revelations in $30 million fraud case
Photo Credit : Ron Chenoy-Imagn Images

While fraud suspicions regarding Kawhi Leonard (6’7″, 34) signing with the Los Angeles Clippers have been making headlines for several days, new revelations are weighing down the case, which increasingly looks like an NBA salary cap circumvention.

Suspicious timing raises questions

On December 6, 2022, Dennis J. Wong, 1% minority owner of the Clippers and franchise vice-president, made a $1.99 million investment in Aspiration, while the company was going through a deep financial crisis. Nine days later, on December 15, Kawhi Leonard received a $1.75 million payment from Aspiration, a payment that was late according to the contractual schedule.

This timeline is particularly concerning as Wong is described as close to Steve Ballmer, with whom he shared a room in college. « It’s beyond shocking, » says an investigation source, former employee of Aspiration’s finance department. « This isn’t a rational investment that someone like Wong would make. »

Particularly troubling circumstances

Pablo Torre’s revelations highlight several concerning elements. Aspiration was « broke » according to former employees’ testimonies, and had already missed a payment to Kawhi Leonard. On the same day of the $1.75 million transfer to the Clippers player, 20% of Aspiration’s workforce, about a hundred people, were laid off.

Another former finance department employee emphasizes the inconsistency of this investment: « Investing in a company that’s completely broke is beyond me. The other thing is the amount invested. It’s such a negligible sum for a startup that raised $300 million just a year earlier. »

Potentially heavy sanctions ahead

This case is part of a $28 million four-year sponsorship deal between Aspiration and Kawhi Leonard, with the player having no obligation to provide any services. The NBA has entrusted an investigation to a specialized law firm, and sanctions could be particularly severe if violations are proven.

The Clippers maintain their official version, with Steve Ballmer claiming to have been « scammed » by Aspiration and denying any involvement in the contract between Leonard and the company. However, the noose is tightening around the franchise, which could face fines up to $7.5 million, the loss of several draft picks, and even the cancellation of Leonard’s contract if the NBA concludes there was an intentional violation of the salary cap.

Sylvain Sultat suit la NBA au quotidien, entre performances individuelles, dynamiques collectives et grandes histoires de la ligue. Sur BeBasket, il décrypte l’actualité américaine avec passion et régularité, toujours à l’affût des tendances qui font bouger le monde du basket.

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