Timeline
Every event below comes only from the Wachtell Lipton summary report. Filter by person or by the kind of claim. 38 events.
Heads up. These event descriptions are our plain-language summary of the report, not direct quotes. We have tried hard to keep them accurate, but for the exact wording and the full detail you should read the full report. Anything in quotation marks is quoted from the report as written.
Clippers fined $250,000 in the DeAndre Jordan case
The NBA found the Clippers tried to arrange an endorsement deal between DeAndre Jordan, a player they wanted to sign, and an incoming team sponsor. The team was fined $250,000. The report cites this as proof the Clippers knew the circumvention rules well.
NBA launches a 'rules enforcement initiative'
Partly because of Robertson's conduct around Leonard's signing, the NBA started a rules-enforcement push. A new rule required teams to report any request for unauthorized pay, even one they turned down.
Leonard signs with the Clippers after winning the title in Toronto
After winning the 2019 championship with the Toronto Raptors, Leonard became a top free agent. During talks, Robertson (on Leonard's behalf) repeatedly asked for benefits the CBA bans, such as team equity, housing, private transportation and off-court income. Leonard signed with the Clippers.
NBA gives the Clippers circumvention-rules training
The league held a training session on the circumvention rules with the Clippers, including Ballmer, Zucker and Frank. It happened during the same period as the misconduct the report describes.
Robertson sets a ~$10M/year off-court income target
Within months of Leonard signing, Robertson again pressured the team. He said he expected the Clippers to help get Leonard roughly $10 million per year, telling mainly Frank but also Ballmer and Zucker. No one told him to stop or reported it to the NBA.
COVID-19 shuts down the NBA
The pandemic suspended the NBA season. That makes it more striking that companies rushed to sign Leonard to endorsement deals in the months that followed.
Robertson vents to Ballmer and Frank; 'I have to get paid'
Per Frank's notes, Robertson complained that Zucker was making introductions for 'bull**** deals' and that he couldn't wait on her. He said, 'I have to get paid.' Ballmer called the group 'collective workers' trying to help Leonard's financial goals. Robertson asked for a '3-6 month plan' and a list of '5-6 companies' in the pipeline.
“I [Mr. Robertson] cant [sic] wait on [Ms. Zucker] - I have to get paid.”
Dennis Robertson, p.14“collective workers to try to help [Mr. Leonard] achieve his financial goals”
Steve Ballmer, p.15Daktronics 'spend back' proposed
After telling Daktronics it was the preferred provider for the Intuit Dome scoreboard, the Clippers sought a 'spend back.' Zucker suggested doing it through an endorsement deal between Daktronics and Leonard. A senior Clippers executive later set the terms at $3 million per year for two years. (Ballmer had also bought the Forum in Inglewood in May 2020. See the Forum entry.)
Zucker's six-day burst of email 'introductions'
In just six days, Zucker sent email 'introductions' connecting Robertson to executives at Boingo, Daktronics and Lockton. Each was written to look like a reply to a company asking to meet Leonard. Investigators found no records of those requests and doubted that all three companies asked within six days during the pandemic.
KL2 LBS LLC is formed the same day as the second 'introduction'
On the same day Zucker sent the second of the three 'introductions,' KL2 LBS LLC was formed, with Leonard and Robertson as its members. It later became the counterparty to Leonard's Boingo, Daktronics and Lockton deals. That suggests Leonard's side was already getting ready to be paid before any real talks could have happened.
Leonard signs two endorsement deals on the same day
Within a month of the introductions, Leonard signed multi-year, multi-million-dollar endorsement deals with two of the three companies on the same day.
Daktronics–Leonard endorsement agreement signed
Daktronics signed its endorsement deal with Leonard on the terms the Clippers' executive had set ($3 million per year for two years). The goal was to help Daktronics win the Intuit Dome scoreboard business.
Leonard signs the third company's endorsement deal
By the end of August 2020, Leonard had signed a similar endorsement deal with the third company.
Leonard has been paid under all three deals
By early September 2020, Leonard had been paid under all three endorsement deals. Around the same time, each company signed a multi-million-dollar consulting deal with the Clippers. Two got $10 million each up front. The third got a $2 million yearly fee one day after its first payment to Leonard.
Clippers push Daktronics to pay Leonard more
Before the first year of the Daktronics deal with Leonard ended, the same senior Clippers executive told Daktronics that, since the team was spending more on scoreboards, Daktronics should pay Leonard more too. The report stresses this push came entirely from the Clippers, not Daktronics.
Daktronics–Leonard deal amended (+$2M)
The parties signed an amendment raising Daktronics' second-year payment to Leonard by $2 million, with extra services from Leonard in return.
All $18M across the three deals has been paid
Leonard was owed $18 million total under the Boingo, Daktronics and Lockton deals. All of it was paid to him by August 2021.
Leonard re-signs with the Clippers
Leonard re-signed with the Clippers in August 2021. That set the stage for the Aspiration deals that followed weeks later.
Aspiration signs three big deals with the Clippers and Ballmer
Aspiration signed a 23-year, $382.5 million sponsorship (a jersey patch and founding arena partner status at the Intuit Dome) and a 23-year, $72 million sustainability-services deal for the Intuit Dome. It also took a $50 million personal investment from Ballmer.
Zucker raises player endorsements with Sanberg
At Zucker's suggestion, she and Sanberg met. Two months into Leonard's new contract, Zucker brought up endorsement deals between team sponsors and players, naming Leonard (and another player) as options for Aspiration.
Sanberg asks Zucker for help signing Leonard
Sanberg told Zucker he wanted an endorsement deal with Leonard and asked for her help. Zucker said she told him the rules barred her from helping. But the record shows she did help, offering to bring in a business agent (then under contract with the Clippers) to structure the deal.
The 'Aspiration and Kawhi' email lays out the terms
Zucker reached out to the business agent. Within minutes, the agent emailed colleagues, in a message titled 'Aspiration and Kawhi,' describing an offer to Leonard of $5 million cash plus $7 million in stock per year for four years. He asked them to build a 'wish list' because Sanberg 'doesn't really know what to ask for.' Investigators conclude Zucker supplied those terms.
“[Mr. Sanberg] is making an offer to Kawhi to be a spokesperson for 5 million cash plus 7 million in stock per year for 4 years as long as he is with the clippers. Can someone please come up with a wish list [Mr. Sanberg] should ask for from [Mr. Leonard]? [. . .] [Mr. Sanberg] doesn't really know what to ask for.”
The business agent (unnamed), p.24Agent emails the term sheet to Zucker
The agent's colleagues drafted a term sheet for the Leonard and Aspiration deal. The agent emailed it to Zucker, saying, 'Let me know your thoughts on this.'
Zucker gives 'input' on the term sheet
After speaking with Zucker, the agent emailed colleagues 'I reviewed with club to get input' and asked for revisions. About 30 minutes later the revised term sheet went to Sanberg ('Gillian shared with me that you guys spoke…'). Zucker also asked for a call with Robertson and Leonard's agent Mitch Frankel about her plan to 'introduce' Leonard's reps to Sanberg.
“Gillian shared with me that you guys spoke. She asked me to help you draft thoughts for the Kawhi offer. Please review and let me know if this is how you were looking at this.”
The business agent (unnamed), p.25Zucker sends the formal 'introduction' email
Zucker sent a formal 'introduction' email to Robertson and Sanberg, written to look like a response to Aspiration's interest. But it came nine days after she offered to bring in the agent, eight days after she passed on financial terms, and one day after she gave 'input.' Investigators find it was written for the record, not to start a process that was already well underway.
Aspiration's executives balk at the Leonard deal
Sanberg pushed Aspiration's leaders to sign Leonard. Their reaction was 'swift and uniformly negative' ('I have no idea why we'd do this'; '$48M over 4 years for Kawhi, who is not a big name'). Sanberg told them 'the Clippers are asking us to do this' and would send business back to offset the cost.
“I have no idea why we'd do this”
Internal Aspiration email (senior executive), p.28“this is not a good investment of our capital [. . . .] It's $48M over 4 years for Kawhi, who is not a big name [. . . .] Not sure why we would make such a commitment considering we are already paying a huge sponsorship fee to Clippers”
Internal Aspiration email (another executive), p.28“[Mr. Sanberg said] that the Clippers are promising to increase the amount they pay us per quarter in line with what we pay this guy [i.e., Mr. Leonard].”
Internal Aspiration email exchange, p.28Hundreds of unreimbursed personal-expense payments
Investigators confirmed hundreds of times the Clippers paid for personal travel, hotels, gifts and tickets for Leonard, his family and Robertson without deducting them from Leonard's pay, as CBA rules require. Frank was responsible for approving these payments.
'Business Back' appears in the Forum term sheet
Sanberg and Zucker discussed a sustainability-services deal for the Forum. The first January 2022 term sheet had a heading 'Business Back Opporutnities [sic]' with '[t]o be filled in by Eric Chan ($7M back in business).' That matched the $7M cash part of Leonard's Aspiration endorsement.
“Business Back Opporutnities [sic] … [t]o be filled in by Eric Chan ($7M back in business)”
Forum term sheet (January 2022 draft), p.29Robertson texts Zucker to be brought 'in the loop'
After Robertson and Aspiration talked over the endorsement terms, Robertson texted Zucker asking to speak so he could 'bring [her] in the loop with Aspiration[.]'
“bring [her] in the loop with Aspiration[.]”
Dennis Robertson, p.26Frank intervenes when Aspiration goes quiet
Frank got a text from Leonard's agent Mitch Frankel, who complained Aspiration was ignoring him and asked for help. Frank said he asked Zucker to step in. Frankel later texted his thanks, saying, 'I got a response from Aspiration since we spoke so we are engaged again.'
“I got a response from Aspiration since we spoke so we are engaged again. Thank you.”
Mitch Frankel, p.26Clippers executives privately flag 'red flags'
In March 2022 texts, Chief Commercial Officer Scott Sonnenberg told CFO Eric Chan 'I never wanted this Forum deal. Always knew it was super shady,' and 'I cannot begin to tell you all the red flags with these deals. Just doing what I'm told at this point.'
“I never wanted this Forum deal. Always knew it was super shady.”
Scott Sonnenberg, p.29“I cannot begin to tell you all the red flags with these deals. Just doing what I'm told at this point.”
Scott Sonnenberg, p.29Sanberg threatens to tear up the Leonard deal
With the Forum Agreement at risk of missing the Q1 deadline, Sanberg texted the business agent, threatening to 'tear up the Clippers contract,' do 'nothing with Kawhi,' and 'go into litigation.' He said there was 'ZERO CHANCE' of a Kawhi deal if the Forum deal wasn't fixed. Chan relayed the threat to Ballmer's office (Brandt Vaughan).
“[I]f [the Forum Agreement] isn't fixed, I will tear up the Clippers contract, we will do nothing with Kawhi and we will go into litigation . . . . Should I call Dennis and Kawhi and tell them that deal is off because we got f**ked . . . . If [the Forum Agreement] isn't signed tomorrow, that's happening next.”
Joe Sanberg, p.31“[D]o you understand how serious this is? This is the ball game. If this isn't fixed, the Clippers / Ballmer / Sanberg / Aspiration relationship is being burned to the ground and so is the Clippers / Kawhi relationship. ZERO CHANCE there is a Kawhi deal if this isn't fixed. You know that right?”
Joe Sanberg, p.31“[Sanberg's] last comment was if we don't sign this deal he will sue Steve, the Clippers, and burn everything down. But let's chat when you can. He will also call Kawhi and tell them how the Clippers screwed everything.”
Eric Chan, p.32'Steve knows… his $12M deal is no longer'
In a March 31, 2022 email, Chan wrote that Ballmer knew that if the deal blew up, Sanberg would call Leonard and tell him his '$12M deal is no longer because of Clippers management.'
“Steve knows that when this deal blows up, Joe is calling Kawhi and telling him his $12M deal is no longer because of Clippers management, right? I think so, but just double checking.”
Eric Chan, p.32Ballmer approves the Forum Agreement
Aware of Sanberg's threat, Ballmer personally approved the Clippers signing the Forum Agreement in April 2022. Given the condition Sanberg set, the report finds signing it was an act of facilitation that breaks the circumvention rules.
Podcast breaks the story
The podcast Pablo Torre Finds Out aired the first episode alleging the scheme. It revealed the four-year, $28 million Aspiration endorsement of Leonard and aired an anonymous former-employee interview claiming its purpose was 'to circumvent the salary cap.' Soon after, the NBA hired Wachtell Lipton.
Ballmer defends the Clippers on TV
In a TV interview, Ballmer said the team's only role with Aspiration was an introductory email ('The introduction got made and then they were off to the races on their own. We weren't involved.'). Investigators find this was inaccurate for Ballmer and clearly false for Zucker.
“[W]e even found the email that makes the first introduction. It was early November, I won't remember the exact date. So where, where could any of this circumvention have happened? It didn't. It couldn't have. The introduction got made and then they were off to the races on their own. We weren't involved.”
Steve Ballmer, p.27Clippers 'double down' with a public statement
The Clippers put out a carefully worded public statement saying 'making introductions between players and team partners is both an ordinary practice by NBA teams and a common request of players.' The report says that, if this implied the rules let teams start off-court income for players, that is wrong.
Summary report issued; NBA announces penalties
Wachtell Lipton issued its summary report finding multiple violations. Separately, the NBA announced penalties, including a $30M fine and five forfeited first-round picks for the Clippers and a one-year suspension for Ballmer. See the Penalties page.
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