The Kawhi Leonard Situation Can Have Massive Implications For Sports Moving Forward
Or, "Cushy Jobs For Everyone? Why Not?"
A couple of years ago, somebody told me that the Los Angeles Clippers were the New York Mets of NBA Basketball. Try as they might to get out of their own way, historically, the franchise just saddles itself with L after L. And when Steve Ballmer (not Cohen) bought the franchise in 2014, he was seen as a bright spot to turn the beleaguered franchise around.
Well, it’s not all that bright currently.
A couple of days ago now sports journalist Pablo Torre broke the news on his show, “Pablo Torre Finds Out” that Steve Ballmer and the Clippers had (allegedly) offered star player Kawhi Leonard a phantom job with a fake subsidiary called ‘Aspiration’ to the tune of $28 million dollars. This “no show” deal was income outside the confines of the National Basketball Association, allowing the team to bypass the league’s salary cap rules. A pretty clever endeavor if true. Well, I suppose it’s not that clever if it became public knowledge after all.
Full episode below, but check out the 31-minute mark:
Now, I think I’m fairly good with money. I try to save for a rainy day here and there, even though it rains all the time when you’re in entertainment. I (mostly) try to make sound financial decisions. Although, there was this one time I went to the theater and bought a $41 specialty bucket of popcorn at a samurai movie screening because I thought it looked cool.
But even then, I know you just can’t stash $28 milli on a roundabout way and not expect people to ever notice, right? Well, ever since the news that possibly the Clippers circumvented the NBA salary cap rules, sports and financial outlets are going NUTS to see what could mean for everyone moving forward. Either way, the Clips are probably going to be the subject of an investigation. Former Dallas Mavericks owner Mark Cuban actually stepped up to defend Ballmer here:
Are billionaires like a giant family where if you pick on one, the others always are ready to hop a fence to scrap with you?
Anyway, this report has opened the floodgates. There has been calls to look at the New York Knicks and their books, ever since they extended superstar Jalen Brunson for an extreme discount. For context:
In July 2024, Brunson signed a four-year, $156 million extension with New York. That figure sits far below the five-year, $270 million maximum he could have earned by waiting. The decision stunned executives and agents across the league.
The contract saves the Knicks over $100 million in obligations, freeing flexibility under the restrictive new CBA. It also allowed the team to extend Mikal Bridges at full market value while staying under the second apron. The Knicks now have a cleaner path to keeping their Villanova trio—Brunson, Bridges, and Josh Hart—together for years.
Still, critics wonder: why leave $113 million behind? - Source
In fact, Torre is game to do so (9:36)
But what does that mean for the rest of us? Well, not much for now. Tickets will still have the litany of fees, and a beer will still cost an arm and a leg. Trust me, I’m still saving up for the day when I can afford a non-knockoff jersey.
But the reason why teams do these things is to sign star players for a chance to win championships. You and I both know winning championships isn’t about feeling good; it’s about the potential windfall (immediate or otherwise) you get for being champ. This may not stop seemingly underhanded tactics to game the system, but rather, teams are going to get more sophisticated if that is their intent. And if it isn’t? If, say, this was a giant misunderstanding and Ballmer is innocent? It almost wouldn’t even matter, as a more discerning look at team spending could be happening to every sport and level moving forward.
Whatever happens, I’m going to be watching things unfold while eating the finest popcorn my $41 bucket allows.