Commissioner touts very broad powers as NBA looks into Clippers

NBA Commissioner Adam Silver has confirmed that the league is investigating serious allegations made against the Los Angeles Clippers and their owner Steve Ballmer. The core claim is that Ballmer arranged a “no-show” endorsement deal worth $28 million with Kawhi Leonard through the now-bankrupt company Aspiration in a way that may have been designed to circumvent the NBA’s salary cap rules.

What’s alleged

• The deal is said to involve no real work by Leonard for Aspiration — no marketing, promotion, or public endorsement — which would make it unusual for a legitimate endorsement.
• Ballmer had invested $50 million in Aspiration. The deal reportedly paid Leonard periodically as long as he was playing for the Clippers.
• Aspiration has since gone bankrupt, and its co-founder Joseph Sanberg has pleaded guilty to defrauding investors.

What the NBA is doing

• Silver says the league has retained an independent law firm—Wachtell, Lipton, Rosen & Katz in New York—to conduct the investigation.
• Silver emphasized that the league is not going to rush to judgment. They want to see the full facts, and they are operating with due process in mind.

What powers the Commissioner says he has

• Silver says he has very broad powers under the NBA’s rules and collective bargaining agreement (CBA) for situations involving salary cap circumvention.
• These powers include imposing financial penalties, stripping draft picks, suspensions, voiding contracts, or other sanctions.
• But Silver also made clear that the burden of proof lies with the NBA. It is not enough to have appearances or allegations; the league must have evidence showing wrongdoing before imposing sanctions.

Possible outcomes & precedents

• If wrongdoing is found, penalties could be severe. Examples from past cases include heavy fines, loss of draft picks, voiding of contracts. The NBA’s rules allow for a range of disciplinary actions.
• A relevant past case was when the Minnesota Timberwolves were penalized in 2000 for entering into a secret agreement with Joe Smith — they were fined and lost draft picks.