The Philadelphia 76ers’ future draft picks are climbing in value as more information from Pablo Torre Finds Out alleges salary cap circumvention between the Los Angeles Clippers and Kawhi Leonard via a fraudulent carbon credit company.
Pablo Torre’s investigation into the company, called Aspiration, disclosed an endorsement deal between Aspiration and Kawhi Leonard, rewarding the Clippers star $28 million for doing nothing in return.
The investigation also revealed that a total of $118 million was
invested in Aspiration over 18 months through a combination of Clippers owner Steve Ballmer, Clippers minority owner Dennis Wong, and the Clippers organization itself.
Simply put, Aspiration’s business model was to sell “Carbon Credits” to companies or celebrities who were told, in turn, that trees would be planted on their behalf, offsetting their personal carbon emissions.
Torre’s reporting notes how Leonard’s endorsement deal with Aspiration came just six months after Ballmer personally invested $50 million into the company in September of 2021.
Later that September, the Clippers announced Aspiration as the “first founding partner” of the Intuit Dome, hoping to offset the carbon footprint of the Intuit Dome construction. The deal was worth $300 million; in return, Aspiration would be the sponsor on the Clippers jersey patch and have a branded cover on the seats.
Fast forwarding ahead to April 2022, on the same day that Leonard’s endorsement is inked, the Clippers purchase $32 million in carbon credits.
The endorsement deal between Aspiration and Kawhi was to be paid out quarterly in installments of $1.75 million. According to anonymous senior executives at Aspiration that Torre interviewed, by the time Leonard’s first payment was almost due, Aspiration was already losing money.
In June of 2022, the Clippers bought $21 million in additional carbon credits, just over two weeks before Leonard’s first payment. Torre’s sources explained how that money came in “very quickly” and was critical in keeping the company above ground until at least Leonard’s first payday, which was already tardy. Torre revealed the document confirmation for the transaction signed by the Chief Financial Officer of the Clippers.
Leonard’s second payday was even later, as Aspiration continued to go downhill and eventually defaulted in November 2022. On Dec. 6, “Wong LLC” invests $2 million into the company. Torre details that the LLC was founded by Clippers minority owner Dennis Wong. Wong was also Ballmer’s college roommate. On Dec. 15, Leonard gets his second $1.75 million payment.
In March of 2023, Ballmer invested an additional $10 million from his personal LLC into Aspiration during a round of fundraising. Torre reveals through court filings of the former CEO Joe Sanberg that Ballmer was the only investor during the company’s fundraising, despite asking 19 investment firms.
The statement the Clippers gave Torre before the first episode of the investigation aired said, “The team ended its relationship with Aspiration years ago, during the 2022-23 season, when Aspiration defaulted on its obligations.”
The last investment came with 14 games left in the season, but months after the company defaulted.
This suspicious timeline has prompted the NBA and Commissioner Adam Silver to launch an investigation into the Clippers for possible cap circumvention, hiring law firm Wachtell, Lipton, Rosen & Katz from New York.
The possible punishment for the Clippers could have sweeping effects for the league, but it would drastically improve the outlook on the 76ers’ future draft picks and where they may land.
They own the Clippers’ 2028 first-round pick and swap rights for their 2029 first-round pick (top three protected) thanks to the return package in the 2023 James Harden trade.
If Silver were to believe the information made public by Torre, and the investigation supports such, there is a chance the league sets an example out of the Clippers, as the integrity of the league and its rules are at risk.
A punishment of multiple first-round picks and voiding Leonard’s contract would be on the harsh end of the scale, as it would cripple the Clippers from a team-building perspective.
An aging roster, an evicted superstar, and no draft capital would likely mean the end for this era of the Clippers, barring an illustrious free agency signing.
This would bode well for the Sixers; the worse the Clippers are in 2027-29, the better the picks, and the more valuable they become as trade chips. The only player on the roster signed through 2028 is center Ivica Zubac.
On the flip side of the token, Silver and Ballmer have historically had a good relationship, ever since Ballmer bought the Clippers from the disgraced Donald Sterling in 2014.
Torre even showed how Silver, when first asked about the company Aspiration at the owners’ meetings, said he “never heard of the company before”.
Torre sent a tweet in response. According to league rules, the Clippers and Aspiration’s “founding partner” deal in 2021 had to be approved by the league, which would assume that Silver had to have some knowledge of the company.
When questioned on this at Tuesday’s Front Office Sports’ Tuned In Summit, Silver would walk it back.
“If I said I never heard of it, I meant in the context of the accusations here. I mean, I was certainly aware of the brand.”
In addition to Silver, Ballmer has respect across the league owners, as Ballmer is currently the Chair of the Audit Committee of the NBA Board of Governors. Ballmer is also currently the seventh richest man in the US. All of these factors make it extremely difficult to predict the punishment, as the implications span many directions.
Unless the league lets the Clippers go free, the Sixers will have a valuable stock of draft capital in their back pocket.
