The Los Angeles Clippers this week asserted that a team making introductions between players and team partners for potential player endorsement deals not only doesn’t violate any NBA rule but is “both an ordinary practice by NBA teams and a common request of players and representatives.”
That “ordinary practice”—which in the past has involved stars such as Michael Jordan and Steph Curry—is likely to become more fraught for teams and star players with intersecting or overlapping sponsor relationships.
The Clippers’ assertion came after ESPN reported two key points regarding the NBA’s ongoing investigation into how Kawhi Leonard was compensated during his tenure with the team.
First, ESPN says, the NBA didn’t find evidence that the Clippers funneled money to team sponsors, including fintech and environmental sustainability company Aspiration, for the purpose of providing Leonard with additional compensation outside of his employment contract—and no obligation to render services. Second, the league is weighing whether to punish the Clippers for how they supervised employees who made introductions between Leonard’s representatives and those sponsors.
The NBA hasn’t issued a decision on the salary-cap circumvention allegations. It continues an investigation led by league officials and David Anders, a partner at Wachtell, Lipton, Rosen & Katz, whom the NBA retained to probe the Clippers and owner Steve Ballmer.
