The NBA has issued a statement rejecting an ESPN report detailing the results of the league investigation into the Los Angeles Clippers.
On Monday, the network reported that league investigators could not find evidence that Clippers owner Steve Ballmer bypassed salary cap rules through corporate sponsorships to pay star forward Kawhi Leonard. ESPN also reported that both parties were negotiating a resolution to the inquiry.
However, league spokesperson Mike Bass released a statement on Monday afternoon strongly disputing the claims made by the sports news outlet.
"ESPN's article regarding the LA Clippers investigation - for which the NBA declined to cooperate - contains numerous and significant inaccuracies," Bass said. "The results in this matter will be made clear once the investigation is concluded."
The NBA did not specify which exact parts of the ESPN report were inaccurate. The league, which sets strict team payroll limits to maintain competitive balance across professional basketball, has been examining whether the franchise breached salary cap circumvention rules.
Scope of the salary cap probe
According to ESPN, league officials are investigating whether introducing Leonard to team sponsors violated rules against circumvention, as well as whether the Clippers are liable for a failure to supervise their employees. It remains unclear what specific regulations may have been broken or what penalties could be imposed.
The allegations first emerged in September in a report published by journalist Pablo Torre. That report alleged the franchise arranged a $28 million no-show endorsement deal for Leonard with team sponsor Aspiration, a financial technology firm partly funded by Ballmer before it declared bankruptcy.
In addition to Aspiration, ESPN reported that three other companies with Clippers sponsorship deals are included in the NBA investigation. The co-founder of Aspiration is currently serving a prison sentence after pleading guilty to fraud charges involving $248 million.
Team response and player movement
ESPN reported that the NBA presented its initial findings late last month and is in the process of resolving the case. However, the Clippers denied any wrongdoing in a statement provided to the network.
"Making introductions between players and team partners is both an ordinary practice by NBA teams and a common request of players and representatives," the team said, adding that it introduced players, including Leonard, to corporate partners.
The Clippers maintained that they did not negotiate or dictate terms for Leonard's endorsement deals, asserting that business arrangements between players and sponsors do not constitute salary cap circumvention.
The unresolved investigation has impacted player movements across the league. In June, the Toronto Raptors agreed to a trade with Los Angeles to acquire Leonard. However, the deal has yet to be finalized as the NBA made clear the Raptors would assume the risk of any potential outcome of the investigation. A statement from the Raptors at the time said they would wait until the league's investigation is complete.
