Kawhi Leonard investigation expands as NBA examines two more financial arrangements

The NBA’s investigation into Kawhi Leonard and the Los Angeles Clippers reportedly reaches beyond the controversial Aspiration sponsorship deal that first triggered scrutiny nearly a year ago, with the uncertainty now putting Leonard’s planned trade to the Toronto Raptors on ice.According to new reporting from The Athletic, the outside law firm conducting the inquiry has examined whether the Clippers paid expenses on Leonard’s behalf without receiving reimbursement.Investigators have also looked into whether Leonard held a previously undisclosed endorsement agreement with a second company.“[The investigation] looked into whether the Clippers improperly covered expenses for Leonard but were not reimbursed for them, those sources said, wrote The Athletic.

“And the firm has examined if Leonard had a previously unreported endorsement deal with another company, those sources said.”Those two developments significantly broaden what was initially understood to be a narrow investigation centered on possible salary-cap circumvention.The league hired Wachtell Lipton to determine whether the Clippers helped arrange Leonard’s lucrative agreement with Aspiration as a way to provide compensation outside his NBA contract.The environmental company agreed to pay Leonard $28 million, though he never appeared in a public advertising campaign before Aspiration’s financial collapse and eventual bankruptcy.The Athletic reported that investigators are now following additional financial threads uncovered during the process.

It remains unclear which expenses the Clippers allegedly covered, how much money was involved or what company was connected to the possible second endorsement deal.No finding of wrongdoing has been announced.The Clippers and owner Steve Ballmer have repeatedly denied using Aspiration to funnel money to Leonard.The organization maintains that it was among the investors and business partners defrauded by Aspiration co-founder Joe Sanberg, who pleaded gui...