Adam Silver plans to let the NBA investigation into the Clippers’ alleged salary-cap circumvention play out rather than issue an immediate punishment.
The commissioner met with the media Wednesday after the NBA’s Board of Governors meeting and addressed Kawhi Leonard’s “no-show job” with failed start-up Aspiration for the first time since Pablo Torre’s report last week. Clippers owner Steve Ballmer has adamantly denied the allegations and has supported the league’s investigation.
“The burden is on the league if we’re going to discipline a team, an owner, a player, or any of our constituent members of the league,” Silver said. “The burden should be on the party that is in essence bringing those charges.”
On Sept. 2, Torre reported that Leonard had an endorsement agreement with Aspiration—an environmental start-up that declared bankruptcy in March—to earn $7 million annually for four years. Clippers owner Steve Ballmer invested $50 million into Aspiration, and the team had a $300 million sponsorship with the company. Torre alleged Leonard’s agreement was intended to circumvent the NBA’s salary cap, which would be a clear violation of the league’s bylaws.
Silver said Wednesday that he has broad power in a potential Clippers punishment, which could include financial penalties, the docking of draft picks, or a combination of both. The league’s CBA allows him to act now, if he wanted to, according to Article XIII, which details cap circumvention.
“A violation of [unauthorized agreements] above may be proven by direct or circumstantial evidence, including, but not limited to, evidence that a Player Contract or any term or provision thereof cannot rationally be explained in the absence of conduct violative of [unauthorized agreements],” the CBA says.
Silver said Torre’s podcast was the first time he had heard of Aspiration’s ties to Leonard or the Clippers despite the company’s previous sponsorship with the team. The NBA tracks sponsorship deals made by teams but doesn’t intently analyze every aspect.
Torre’s reporting has a paper trail that gives Silver the ability to act based on circumstantial evidence, but he appeared adamant about allowing the investigation to unfold before ruling on a possible punishment.
“I was only quasi-joking with someone earlier, when people talk about a smoking gun, that’s obviously circumstantial. It means the gun is still smoking. It must have been recently fired,” Silver said. “I’d say in the case of the league we have our investigators look at the totality of the evidence. I would be reluctant to act if there was a mere appearance of impropriety.”
NBA Expansion Updates
Silver said he spent the summer touring Europe with deputy commissioner Mark Tatum about a prospective overseas league. On Sunday, Tony Parker said the prospective league is happening ”in a matter of time.” Silver confirmed he’s frequently spoken with Parker about it and added the NBA has hired JPMorgan to help with financial analysis.
In July, EuroLeague CEO Paulius Motiejūnas said he planned to meet with FIBA and the NBA in September regarding the prospective league. Silver said discussions with the EuroLeague “are ongoing.”
“There is still room to further engage with them and find ways that we can integrate our operation in some way,” Silver said.
Silver said there was “no new news” on domestic expansion despite the Board of Governors asking the league in July to provide an “in-depth analysis” to explore it. He pushed back on the notion that the NBA is prioritizing international expansion over domestic expansion.
“I see them as completely independent opportunities,” Silver says. “It’s a high-class problem, but some of the recent jumps in franchise valuations sort of created some confusion in the marketplace about how you might even price an expansion franchise.”
