Clippers owner Ballmer responds to salary cap circumvention allegations: fully compliant, no interference in Kawhi Leonard's business deals

On September 5th Beijing time, the Clippers owner gave an interview to ESPN’s Shelburne to respond to the accusations involving the Clippers and Kawhi Leonard. Previously, podcast host Pablo Torrey published a report alleging the Clippers engaged in salary cap circumvention, based on Leonard signing a “nominal contract” with a company where Ballmer holds investment. Below is Ballmer’s full response during the interview —

Reporter: Steve, thank you for taking the time to discuss these controversies.

Ballmer: I appreciate the opportunity and look forward to clarifying this matter. First, I want to be very clear: the Clippers have fully complied with all anti-salary cap circumvention rules. This is the right approach, and we have always followed it. Regardless of my personal views on these rules, they are crucial for maintaining league competitiveness and ensuring a fair playing field for all teams. As long as these are league rules, we absolutely adhere to them.

Reporter: How do you define the rules against “salary cap circumvention”?

Ballmer: The league rulebook has explicit provisions, but simply put: we cannot pay players anything beyond their standard player contracts, nor can we induce any other parties (like sponsors or brands) to provide such extra compensation — this is strictly forbidden, and we have never engaged in such practices, including in this case.

Of course, teams may have sponsors, players can sign endorsement deals, and we may even cooperate with brands endorsed by players. But the key point is: we absolutely do not interfere with the negotiations between players and these brands. In this case, we did not interfere, nor have we ever done so in the past.

Reporter: You previously responded to Pablo’s podcast by saying these accusations “can be proven false.” How exactly can you prove that?

Ballmer: First, starting from the rules themselves — our partnership with the company called Aspiration (the company involved in the controversy) fully complies with all regulations. Honestly, I first learned about this company because they proactively sought sponsorship cooperation with the Clippers. My family and I have long been concerned about climate change; at one point, we were even redesigning the Clippers’ home arena aiming for carbon neutrality. Aspiration specializes in carbon-neutral initiatives, so for us, it seemed like a perfect match.

Later, they offered us a massive sponsorship deal — $330 million, which is among the largest sponsorship contracts in sports history, and it did not include arena naming rights (which we had previously declined in favor of a partnership with Intuit). For us, this was a high-quality partnership that aligned well with our values, so we quickly finalized the sponsorship agreement. At the same time, I personally invested in the company based on my belief in their business.

But two points must be emphasized: first, I do not have control over this company. According to salary cap rules, my ownership is less than 3%, with other investors contributing much more. I have no board seat and cannot influence company operations — and later it turned out to be a fraudulent company, so perhaps no one truly “controls” it. Second, our contract with Leonard was signed in August 2021 — a four-year deal (with a player option in the fourth year) at the maximum amount allowed under the rules at that time. We knew Leonard would be recovering from an ACL tear for a year but were still excited about the signing; the contract process was fully compliant.

Regarding Aspiration’s cooperation with Leonard: our sponsorship and investment agreements with Aspiration were finalized in August-September 2021, before Leonard even knew about the company. It was only in early November that Aspiration, following rules, asked us to introduce Leonard — note, league rules allow teams to connect sponsors and players but prohibit interfering in subsequent negotiations. We did make that introduction, but it was after all key contracts (Leonard’s player contract and Clippers’ sponsorship deal with Aspiration) were already in effect.

We recently reviewed all communications with Aspiration — as part of cooperating with the U.S. Department of Justice and the Securities and Exchange Commission investigations, we submitted all texts and emails, including the very first introduction email (dated early November). Based on the timeline and process, salary cap circumvention was simply impossible: we neither interfered nor had the chance to interfere. I only later learned they reached a deal but had no knowledge of the specific terms.

Reporter: But ordinary fans might wonder: you are an investor in the company (reported to have invested $50 million) and one of the largest participants in its funding round; your star player received a $28 million contract from that company without actual performance obligations, and then re-signed with the Clippers — this seems like a “behind-the-scenes” operation. How do you respond to this perception?

Ballmer: First, the timeline is clear: Leonard’s contract predates all dealings with Aspiration, and his player contract was active before he knew about the company — that’s a fundamental proof of integrity. Second, I do not control Aspiration; at the time of investment, other investors contributed six times more than I did. Fans need to understand this — I cannot dictate the company’s decisions.

Regarding the reported amount Leonard received from Aspiration, I only know what’s been speculated in reports. I don’t know the exact figures nor can I judge how it compares to other players’ endorsement contracts. But looking at Forbes’ highest-paid athletes list, it’s common for top stars like Leonard to earn endorsement income exceeding their salaries; this is not unusual in the league. We have complied with all rules throughout, and I cannot be responsible for decisions made by other entities.

Reporter: Why do you think Aspiration would pay Leonard such a high amount (reported as $7 million annually with no performance requirement)?

Ballmer: I honestly don’t know. First, I’m not sure if the amount matches the reports; second, this company is fraudulent — they deceived me and many more experienced investors. Their behavior does not follow normal business logic, so I cannot speculate on their motives for working with Leonard — after all, I myself was tricked into investing in a fake company.

Looking back, I should have detected the irregularities sooner, and I feel embarrassed and regretful about that. But at the time, like many savvy investors, I was misled by their forged financial statements. This investment was a failure and a lesson, but it has nothing to do with salary cap circumvention.

Reporter: When Leonard signed with the Clippers in 2019, reports said his uncle Dennis Robertson requested extra benefits (such as private jet use, housing, guaranteed endorsement opportunities). The NBA investigated and found no violations but reserved the right to reopen if new evidence appeared. Since 2019, has Robertson ever requested benefits violating league rules?

Ballmer: Leonard and his team (including his uncle) fully understand the league rules. If anything was unclear, we would clarify the details together and clearly state that the Clippers strictly comply. They understood and have always followed the rules.

Reporter: Reports say you are a major creditor in Aspiration’s bankruptcy case, and you previously expressed willingness to cooperate with federal agencies and the NBA investigation. Why choose to cooperate proactively?

Ballmer: First, the “creditor” is the Clippers, not me personally — this is Aspiration’s unpaid sponsorship fees. My personal investment is fully lost. As for cooperating with investigations, the main reason is I want to prove to the entire NBA ecosystem, especially Clippers fans, that since I acquired the team, we have operated transparently.

Whether dealing with fans, players, employees, or following league rules, “doing the right thing” has always been our core principle. We welcome league investigations because we have nothing to hide and want to use this opportunity to clarify the facts so fans know they support a team that upholds integrity.

Reporter: Since Leonard’s time in San Antonio, similar controversies have surrounded him (such as allegations of receiving benefits, former trainer lawsuits withdrawn), plus topics like “load management,” leading to constant public doubts. Why do you think these controversies always focus on him?

Ballmer: I think it might be because Leonard is usually reserved, creating a certain “mystique” that fuels speculation and narratives. I have a good relationship with Leonard and meet with him several times a year to discuss team matters. None of the accusations against him have ever been proven true. For me, what matters most is that we have always done the right thing in all interactions. Leonard’s business affairs are his own, but we have consistently followed the rules.

Reporter: After the podcast report was released Wednesday, did you talk to Leonard about these accusations?

Ballmer: No. Because this is a private business matter between him and Aspiration, I don’t ask about it proactively.

Reporter: If other teams or owners faced similar controversies, how would you view that?

Ballmer: I would hope the league investigates thoroughly and treats it seriously. As I said before, the anti-salary cap circumvention rules are vital to the league, and any potential violations must be fully examined.

Reporter: Have you ever instructed Aspiration to arrange an endorsement deal with Leonard?

Ballmer: No. More importantly, the Clippers did not do that either. We only made a routine introduction per the rules. Many sponsors want to activate their brands through player partnerships, which is compliant and respectful to both parties — refusing introductions would be disrespectful to both sponsors and players. The league rules allow this, and this system has worked well. Any rule changes are ultimately up to the NBA officials.

Reporter: The NBA Board of Governors meeting is in a few days. How do you think other team owners will view this matter?

Ballmer: I don’t know. I hope owners who know me have confidence in me, but I cannot predict their attitudes.

Reporter: Any final remarks?

Ballmer: Besides clarifying the facts, I want to say this: I am angry about the current situation and saddened for our team staff and fans — they should not have to bear pressure from such false accusations. I’m grateful for the chance to speak out and hope the public sees our sincerity and compliance.