On September 10th Beijing time, fresh updates have surfaced about the alleged misconduct involving Leonard and the Clippers. Toronto reporter Bruce Arthur revealed an eye-catching detail: during the 2019 free agency period, Leonard’s team made a specific demand in negotiations with the Raptors that closely mirrors the terms Leonard later agreed upon with Aspiration.
According to Arthur, Leonard’s uncle and agent Dennis Robertson requested an additional $10 million per year in endorsement income. Although the Raptors had no right to engage in or negotiate such off-court endorsement deals, they indicated that many local Toronto businesses were eager to have Leonard as their brand ambassador. However, Leonard’s team told the Raptors that Leonard was unwilling to perform any obligations, such as shooting commercials or attending promotional events, in exchange for that extra income.
Arthur wrote in his report: “It was at that moment the Raptors realized Leonard wasn’t interested in being connected to Toronto’s lucrative business circle — instead, he was seeking a ‘named position’ and ‘investment without effort.’ Ultimately, the Raptors rejected both proposals.”
Arthur had also previously reported that Leonard’s team demanded a stake in the NHL’s Toronto Maple Leafs, who are owned by the same group as the Raptors.
Currently, Leonard and the Clippers are under investigation by the NBA. Earlier reports indicated that the Clippers’ sponsor Aspiration (in which Clippers owner Ballmer invested $50 million) reached an agreement with the two-time Finals MVP to pay him $28 million in cash plus $20 million in company stock.
Although this agreement appears to be an endorsement contract, it does not require Leonard to fulfill any obligations to receive the $28 million — an unusually high amount for any off-court sponsorship deal. The league is investigating whether the Clippers used Aspiration to “indirectly funnel money” to circumvent the NBA salary cap.
Here is some additional information regarding this matter —
On Monday, ESPN reporter Ramona Shelburne reported on the show NBAToday that Aspiration once offered nearly twice the final price for the Clippers’ home arena naming rights — Intuit ultimately secured the rights for $550 million, and the Clippers chose Intuit, a more established brand. Shelburne commented, “This detail alone shows how Aspiration was spending money lavishly during that period.”
Also on NBAToday, ESPN reporter Dave McMenamin revealed that a Clippers insider likened the “illegal recruitment” to a “speeding ticket,” while calling “salary cap circumvention” a “murder charge” — implying the Clippers clearly knew not to cross that line. McMenamin added that the Clippers have publicly stated they “welcome” the NBA’s investigation.
Eric Pincus of The Athletic analyzed three possible outcomes of the NBA’s investigation into the Clippers and Leonard: from “Clippers being completely innocent and avoiding punishment” to “the team (and Leonard) facing severe penalties similar to the Timberwolves’ ‘Joe Smith case.’” Back in 2000, the NBA found the Minnesota Timberwolves had signed an illegal contract with Joe Smith to circumvent the salary cap, resulting in a $3.5 million fine, loss of five first-round draft picks (two later restored), and the nullification of Smith’s contract.