NBA says it will open investigation into report that Clippers broke cap rules with Leonard deal

LOS ANGELES (AP) — The NBA said Wednesday that it will investigate if a $28 million endorsement contract between Kawhi Leonard and a California-based sustainability services company allowed the Los Angeles Clippers to circumvent league salary cap rules, following a report by journalist Pablo Torre.

The Clippers strongly denied that any rules were broken and said they welcomed the league's investigation.

The probe will focus on ties between Leonard, the Clippers and a company called Aspiration Fund Adviser, LLC, which filed for bankruptcy this year. It listed several creditors at that time, among them the Clippers (who were owed about $30 million) and a company called KL2 Aspire LLC that was owed $7 million.

Leonard is listed as the manager of that company in California filings. KL is his initials, and 2 is his jersey number. Emails sent to his listed representatives seeking comment Wednesday were not immediately returned.

“We are aware of this morning’s media report regarding the LA Clippers and are commencing an investigation,” NBA spokesman Mike Bass said Wednesday.

Clippers owner Steve Ballmer made a $50 million investment in Aspiration, and the company and the team announced a $300 million partnership in September 2021. That was about a month after Leonard signed a four-year, $176 million extension with the Clippers.

The team ended its relationship with Aspiration after two years, saying the contract was in default.

“Neither the Clippers nor Steve Ballmer circumvented the salary cap,” the team said. "The notion that Steve invested in Aspiration in order to funnel money to Kawhi Leonard is absurd. Steve invested because Aspiration’s co-founders presented themselves as committed to doing right by their customers while protecting the environment.

“After a long campaign of market manipulation, which defrauded not only Steve but numerous other investors and sports teams, Aspiration filed for bankruptcy. ... Neither Steve nor the Clippers had knowledge of any improper activity by Aspiration or its co-founder until after the government initiated its investigation.”

Aspiration’s co-founder, Joseph Sanberg, agreed to plead guilty last month after facing federal charges of wire fraud. Prosecutors said he defrauded investors and lenders out of $248 million, adding that “Aspiration’s financial statements were inaccurate and reflected much higher revenue than the company in fact received.”

Torre, in his reporting, obtained a copy of the endorsement agreement between Aspiration and KL2 Aspire, one that called for Leonard to be paid $7 million annually for four years. Given that timetable, Leonard still would have been owed the final $7 million at the time of Aspiration’s bankruptcy filing.

There is no evidence that Leonard did anything to publicly endorse Aspiration.

“There is nothing unusual or untoward about team sponsors doing endorsement deals with players on the same team,” the Clippers said. “Neither Steve nor the Clippers organization had any oversight of Kawhi’s independent endorsement agreement with Aspiration. To say otherwise is flat-out wrong.”

The league — which previously looked into claims that Leonard's representatives asked for certain things that would be considered cap circumventions when he was a free agent several years ago — can issue stiff penalties if cap rules are found to have been broken by a team, including a fine of up to $7.5 million, the voiding of contracts and the forfeiture of future draft picks.

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FILE - Los Angeles Clippers forward Kawhi Leonard, right, looks toward the scoreboard during the second half of an NBA basketball game, May 1, 2025, in Inglewood, Calif. (AP Photo/Mark J. Terrill, file)

CHARLOTTE, N.C. (AP) — The FBI said Friday it had disrupted a plot to attack a North Carolina grocery store and fast-food restaurant on New Year's Eve, arresting a man who officials said was inspired by the Islamic State group and had pledged loyalty to the extremist militants.

Christian Sturdivant, 18, was charged with attempting to provide material support to a foreign terror organization after officials say he communicated his attack plans to an undercover FBI employee who was posing as an encouraging confidant.

He was arrested by federal agents on Wednesday. He remained held following a Friday morning court appearance. Another hearing is set for Jan. 7. The lawyer representing Sturdivant in federal court on Friday didn’t immediately respond to an email seeking comment.

An FBI affidavit filed in the case said Sturdivant came under investigation last month following information that a social media account, which officials connected to Sturdivant, had made posts supportive of IS. Those included posts that depicted a ballistic vest and appeared to promote violence, the affidavit said, and the display name for the account referenced the name of the late IS leader, Abu Bakr al-Baghdadi.

Sturdivant began communicating on social media with someone who he thought was supportive of his plans but who was actually an undercover FBI employee, the affidavit said.

Russ Ferguson, the U.S. Attorney for western North Carolina, declined to name the grocery store and fast-food restaurant that were allegedly targeted, citing the ongoing investigation. But he said both were in Mint Hill, a small bedroom community of Charlotte.

The affidavit says Sturdivant had been on the FBI's radar in January 2022, when he was a minor, after officials learned that he had been in contact with an IS member in Europe and had received instructions to dress in all black, knock on people's doors and commit attacks with a hammer.

Sturdivant did actually set out for a neighbor's house armed with a hammer and a knife but was restrained by his grandfather, the affidavit says.

The North Carolina attack would’ve come a year after 14 people were killed in New Orleans by a U.S. citizen and Army veteran who had proclaimed his support for IS on social media.

Other IS-inspired attacks over the past decade include a 2015 shooting rampage by a husband-and-wife team who killed 14 people in San Bernardino, California, and a 2016 massacre at a gay nightclub in Orlando, Florida, by a gunman who fatally shot 49 people.

The FBI has foiled several alleged attacks through sting operations in which agents posed as terror supporters, supplying advice and equipment. Critics say the strategy can amount to entrapment of mentally vulnerable people who wouldn’t have the wherewithal to act alone.

Robertson reported from Raleigh, North Carolina. Associated Press writer Eric Tucker in Washington contributed.

FILE - An FBI seal is displayed on a podium before a news conference at the field office in Portland, Ore., Thursday, Jan. 16, 2025. (AP Photo/Jenny Kane, File)