The sentencing of Aspiration co-founder Joseph Sanberg to 14 years in federal prison brings the NBA closer to concluding its nine-month investigation into allegations that the Los Angeles Clippers circumvented the salary cap.
Sanberg pleaded guilty in October to federal charges of defrauding investors out of $248 million by misrepresenting Aspiration, a now-defunct company, as a firm specializing in socially conscious and sustainable banking services and investment products. The NBA's probe is reportedly focused on $60 million invested in Aspiration by Clippers owner Steve Ballmer and a $28 million contract signed by Clippers star Kawhi Leonard with Aspiration for endorsement and marketing services he allegedly did not render.
While players are permitted independent endorsement and business agreements, the NBA is examining whether the Clippers facilitated this specific side deal beyond merely connecting Aspiration executives with Leonard. Such involvement would constitute a violation of Article 13 of the NBA collective bargaining agreement, potentially resulting in a $4.5 million fine, forfeiture of a first-round draft pick, and the nullification of Leonard's contract. The league is anticipated to release its findings after the NBA Finals, which commence this week.
Clippers officials have remained silent on the investigation. However, Leonard, who is entering the final year of a three-year, $149.5 million contract, expressed confidence to The Athletic in April, stating, "I think we're going to be in the clear. I'm not stressing."
In documents submitted to federal court ahead of Sanberg's sentencing, Dave Anders of Wachtell Lipton, representing the NBA, stated that Sanberg had provided information and documentation that "substantially assisted our investigation." Conversely, Ballmer's attorney, David N. Kelley, submitted a victim impact statement arguing that Sanberg's cooperation was self-serving and his credibility questionable due to his guilty plea. Judge Stephen V. Wilson acknowledged Sanberg's questionable credibility, noting, "He portrays himself as a do-gooder who was in business to help the world, but he did personally gain from his fraud."
Ballmer, who acquired the Clippers in 2014, alleged that Sanberg targeted him due to his known interest in environmental sustainability, exaggerating their relationship to solicit investments. Ballmer stated he met Sanberg only once. Ballmer invested $50 million in Aspiration in September 2021, with a $300 million sponsorship deal between the Clippers and Aspiration announced the following month. Ballmer also made an additional $10 million investment in Aspiration in March 2023. Ballmer was subsequently named a defendant in a civil lawsuit filed by 11 Aspiration investors accusing him and others of fraud and aiding and abetting fraud, seeking at least $50 million in damages.
