NBA insider compares Clippers' Aspiration saga to connection with FTX scandal that led to Sam Bankman-Fried's arrest

The league is investigating the LA Clippers over a controversy surrounding owner Steve Ballmer's investment in Aspiration. The investigation also involves a $28 million endorsement deal with star player Kawhi Leonard.

NBA insider Dan Roberts of “Front Office Sports” on Sunday drew comparisons to the FTX scandal. Despite being a relatively new company, FTX had secured a 19-year, $135 million stadium naming rights deal with the Miami Heat.

“The situation reminds me very much of FTX, the fraudulent crypto exchange that launched in 2019, surged to a $32 billion valuation by early 2022, and collapsed by the end of that same year,” Roberts wrote for Front Office Sports. “Along the way, FTX cozied up to Tom Brady and Gisele Bündchen, plus a slew of athlete endorsers. (Aspiration had Drake and Leo DiCaprio.)”

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The controversy began when journalist Pablo Torre uncovered evidence that raised questions about the deal. It also included why Ballmer continued to invest in Aspiration despite a federal investigation into the company. Additionally, LA Clippers co-owner Dennis Wong also invested in Aspiration, which further fueled concerns about the legitimacy of the deal.

NBA Commissioner Adam Silver acknowledged that the league would review its rules regarding companies that players are investing in and owners. However, he also noted that the league cannot fully investigate every team sponsor.

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LA Clippers owner Steve Ballmer continued donating to Aspiration co-owner: Reports

Pablo Torre provided evidence of claims that Clippers owner Steve Ballmer continued to give money to Aspiration cofounder Joe Sanberg. He added that his donation didn’t stop even as the company was being investigated by the federal government.

Torre also added that the LA Clippers, Ballmer and co-owner Dennis Wong made multiple payments to Aspiration despite the company's dire financial situation. In March 2023, Ballmer invested $10 million in Aspiration, despite 19 other potential investors declining.

Furthermore, Ballmer's investment company reportedly sent a $1.875 million grant to the Golden State Opportunity Foundation, a separate entity run by Aspiration's co-founder, Joseph Sanberg. This happened months after the government investigation started. Meanwhile, Wong invested $1.99 million in Aspiration in December 2022, just before the company made a $1.75 million payment to Leonard.

Edited by Ubong Richard