I have two more quick notes. #1, working in H’wood a little bit, I’m more familiar than the average person with what’s called a “no services contract.” Sometimes a rightsholder or original producer or writer, etc., can get credit and get paid and do absolutely nothing–it happens a fair amount, especially with IP and remakes and sequels, etc. It sounds like Kawhi’s deal had extremely limited endorsement commitments that were at his discretion, for tons of money. The deal was based on association, and it might have been made in order to get the investment from Ballmer. But that’s not trying to get around the salary cap, I don’t think.

But the big thing #2 is that I think the Kawhi deal with Aspiration is dated 2022, the podcast said. They raise a big question of why did Kawhi sign with the Clippers–but that was in 2019. Need to check on all that, but it was a big glitch in the argument.

Still a ways to go in the pod.

I just feel like whatever employee they interviewed who was quoted as this was a means to circumvent the cap is confused what that really means. I don’t think it’s uncommon for teams to make connections for their players to their sponsors, and even if the Clippers were a little involved, that doesn’t mean they’re circumventing the cap to get Kawhi to stay.

I’d be curious, given the huge amount of fraud already linked with this company, did Kawhi actually receive any of these benefits? Seems like a lot of companies are going after this company for not fulfilling agreements. I think it was cited that they had an agreement with “KL2” for a endorsement contract, but I would assume he could just be another party who this company did not fulfill their obligations.

I was wondering about it through the day yesterday, maintaining faith in Ballmer and the professionalism of the Clips. Seeing the Clippers statement was quite convincing.

As I said yesterday, ‘endorsement’ is a fuzzy gray area. The bad actor appears clearly to have been the principals of the company, who were guilty of substantial fraud. They seem to have made the generous deal with Kawhi in order to be able to secure the investment and associate themselves with the Clippers. Whoever negotiated the deal on Kawhi’s behalf might have been part the bad faith, doing a no services contract for a ton of money, but there were probably some sort of rights to use his name and have him be a part of their profile, if not their marketing. An investigation could turn up elements of this negotiation and deal that would reflect poorly on Kawhi, some knowledge that this was a scam in which he would be a beneficiary, but it doesn’t seem like it would be something that would go against league rules

As Osamu says above, Ballmer and the Clippers very much appear to be the victims here. They didn’t create the company or hatch the scheme, were clearly victims of the fraud rather than perpetrators of it. The statement seems very clear about the company, its fraud, and the Clippers ending their association with it.

Another element in the story–which we should not jump too quickly to call a “scandal,” especially the idea that it implicates and includes the Clippers organization–is the journalistic angle here. The fraudulent actions of the company, which have been established apparently, is a story, and Kawhi’s association, contract, and payment are a story as well. But employees of the company, who may have been acting in good faith and duped themselves, saying that Kawhi was receiving money for no services, doesn’t amount to much–marquee/name athletes get money for doing nothing all the time. Associating the Clippers organization as part of the scheme and making the leap to “an attempt to get around the salary cap” is the sensational take that is going to get all the clicks and attention. I don’t see the problem though–the main issue is that the company was clearly committing fraud and not delivering on any of its promises or products.

I don’t really blame the journalism here, I don’t think, but it got amped up and will probably prove to be aggressive and premature. That’s the way it goes these days.

Still watching to see how it plays out.

$28 million is a LOT and I don’t see this getting swept under the rug.
Im going to hold onto the 10% chance that it’s not as technically awful as it appears.

Am sure many of you also feel this way but if this comes to light what is the breaking point for Clipper fans? Ugh!!!

I SUPPOSE there is some grey area where Ballmer thought they were a legitimate business, who said they would sponsor Kawhi, and get him the money he or his “family” demanded? Just seems like if someone is offering you that deal, you don’t get into bed with them for like $300M sponsorship deal. And definitely don’t put anything in writing or on paper linking you to the deal.

In any case, while not a good look for the Clippers, I doubt much comes out of this. In 24 hours once football season starts, this is all going to get out of sight out of mind at least among the national media. After that, the NBA can do an investigation if they want, I just doubt the Clippers have some smoking gun linking them to the Kawhi endorsement deal.