Pablo Torre released part five of his investigative series on his podcast. He focused on Kawhi Leonard’s $48 million deal with Aspiration.
Torre quoted a current NBA head coach. The coach said, “This should be embarrassing for the league. I know teams do little side deals, but what happened here is so obvious.”
The journalist explained the deal’s terms. Leonard had to remain with the Clippers to receive payments.
Torre read from the endorsement agreement. It stated, “Company shall have the right to terminate if Leonard is no longer an employee of the team for any reason.”
Amin Elhassan noted the deal exceeded fair market value. Torre highlighted Aspiration’s payments to other celebrities. The firm paid Leonard more than four times what it gave to Drake, Leonardo DiCaprio, and Robert Downey Jr. combined.
Internal texts from Aspiration executives surfaced. One executive wrote, “Roj and I are trying to talk Joe and Andre out of a $48 million deal with Clippers player Kawhi Leonard. It’s regional male niche redundant to the Clippers, had no ASUS impact, and is a huge expense with no clear ROI.”
Another text called the idea horrible. It added, “They are love drunk with these celebs. Plus Kawhi is dull.”
Despite these internal protests, Aspiration co-founder Joe Sandberg pushed the deal through. He even personally guaranteed a separate $20 million equity offer for Leonard that included a “put option,” ensuring the star would get his money back if Aspiration’s stock value fell.
A former Aspiration finance member defined the put option. The source said, “To oversimplify, a put option is a fixed price at which a buyer is able to sell their stock in a company.”
Torre revealed Sanberg’s personal involvement. Sanberg used his RJB Partners LLC to fund the equity. An email from Sanberg stated, “For avoidance of doubt. Any and all benefit to aspiration from the Kawhi deal is being subsidized by my contributing my equity to make this happen.”
Torre uncovered communications from Leonard’s agent Mitch Frankel. Frankel texted Aspiration’s general counsel about delayed payments.
One text read, “Mike, good morning. Can you tell me the status of the payment from Aspiration to KL2? Thank you. Mitch Frankle.”
Torre linked Clippers owner Steve Ballmer to Aspiration. Ballmer invested $50 million personally. The podcast detailed Ballmer’s later investments. Dennis Wong, a Clippers minority owner, invested $1.99 million in December 2022.
Torre reported Ballmer’s charity donation. The Ballmer Group gave $1.875 million to Golden State Opportunity Foundation in December 2024. Joe Sanberg founded that foundation. The donation came after federal probes into Aspiration.
An October 2021 email from Sandberg stated, “Balmer himself is enthusiastic to help and will personally be a reference and advocate where we ask him.” Ballmer was later revealed to have personally connected Aspiration’s founders with other CEOs.
NBA insider Jake Fischer reported on the league’s probe. He said the investigation may extend past the All-Star Game.
John Hollinger from The Athletic outlined penalties. These include fines up to $7.5 million for the team and $350,000 for the player. Hollinger mentioned other sanctions. They range from suspensions to draft pick forfeitures.
The Clippers deny wrongdoing. Ballmer claims he was defrauded by Aspiration.
Torre’s reporting raises questions. It suggests deeper ties between the star forward, the owner, and the fintech company. The probe continues. League sources expect resolution in the season’s second half.
Torre simplified the story. He called it the largest salary cap circumvention scheme in sports history.
Elhassan referenced the CBA. He read, “Compensation from a sponsor, business partner or third party substantially in excess of the fair market value of any services to be rendered by the player.”
Torre urged steel-manning critiques. He addressed Ballmer’s defenses. The journalist quoted Ballmer. The owner said, “They defrauded me. They defrauded many other investors.”
Aspiration faced federal charges. Sanberg pleaded guilty to wire fraud. Torre’s sources include former Aspiration staff. They provided documents and texts.
NBA Commissioner Adam Silver emphasized due process. He said, “The goal of a full investigation is to find out if there really was impropriety.” Wachtell, Lipton, Rosen & Katz leads the review. They examine documents and transactions.
Leonard has not commented publicly. His camp did not respond to Torre. The Clippers ended ties with Aspiration in 2022-23. They cited defaults on obligations.
Leonard remains under contract. His deal pays over $50 million next season.
