salary cap

Clippers owner Steve Ballmer is being sued by 11 former investors in the sustainability firm Aspiration Partners.

Ballmer was added this week as a defendant in an existing civil lawsuit against Aspiration co-founder Joseph Sanberg and several others associated with the now-defunct company. Ballmer and the other defendants are accused of fraud and aiding and abetting fraud, with the plaintiffs seeking at least $50 million in damages.

“This is an action to recover millions of dollars that Plaintiffs were defrauded into investing, directly or indirectly, in CTN Holdings, Inc. (‘Catona’), previously known as Aspiration Partners, Inc,” reads the lawsuit, which was initially filed July 9 in Los Angeles County Superior Court, Central District.

Attorney Skip Miller said his firm, Miller Barondess LLP, filed an amended complaint Monday that added the billionaire team owner and his investment company, Ballmer Group, as defendants in light of recent allegations that a $28-million deal between Aspiration and Clippers star Kawhi Leonard helped the team circumvent the NBA’s salary cap.

“Ballmer was the perfect deep-pocket partner to fund Catona’s flagging operations and lend legitimacy to Catona’s carbon credit business,” says the amended complaint, which has been viewed by The Times. “Since Ballmer had publicly promoted himself as an advocate for sustainability, Catona was an ideal vehicle for Ballmer to secretly circumvent the NBA salary cap while purporting to support the company as a legitimate environmentalist investor.”

Although Ballmer did invest millions in Aspiration, it is not known whether he was aware of or played a role in facilitating the company’s deal with Leonard. The Times reached out to the Clippers for a comment from Ballmer or a team representative but did not receive an immediate response.

CTN Holdings filed for bankruptcy in March and, according to the lawsuit, is no longer in operation.

In late August, Sanberg agreed to plead guilty in federal court to a scheme to defraud investors and lenders of more than $248 million. On Sept. 3, investigative journalist Pablo Torre reported on his podcast that after reviewing numerous documents and conducting interviews with former employees of the now-defunct firm, he did not find evidence of any marketing or endorsement work done by Leonard for the company.

That was news to the plaintiffs, according to their amended lawsuit.

“Ballmer’s purported status as a legitimate investor in Catona was material to Plaintiffs’ decision to invest in and/or keep their investments with Catona,” the complaint states.

It also says that “Sanberg and Ballmer never disclosed to Plaintiffs that the millions of dollars Ballmer injected into Catona were meant to allow Ballmer to funnel compensation to Leonard in violation of NBA rules and keep Catona’s failing business afloat financially. Sanberg and Ballmer’s scheme to pay Leonard through Catona to evade the NBA’s salary cap was only later revealed in 2025, by journalist Pablo Torre.”

Miller said in a statement to The Times: “A lot of people including our clients got hurt badly in this case. This lawsuit is being brought to make them whole for their losses. I look forward to our day in court for justice.”

The NBA announced an investigation into the matter in early September. Speaking at a forum that month hosted by the Sports Business Journal, Ballmer said that he felt “quite confident … that we abided [by] the rules. So, I welcome the investigation that the NBA is doing.”

The Clippers said in a statement at the time: “Neither Mr. Ballmer nor the Clippers circumvented the salary cap or engaged in any misconduct related to Aspiration. Any contrary assertion is provably false: The team ended its relationship with Aspiration years ago, during the 2022-23 season, when Aspiration defaulted on its obligations.

“Neither the Clippers nor Mr. Ballmer was aware of any improper activity by Aspiration or its co-founder until after the government instituted its investigation.”

Leonard also has denied being involved in any wrongdoing associated with his deal with the now-defunct firm. Asked about the matter Sept. 29 during Clippers media day to open training camp, Leonard said, “I don’t think it’s accurate” that he provided no endorsement services to the company. He added that he hadn’t been paid all the money due to him from the deal.

TORONTO — Beneath his feet, confetti decorated the turf. Behind him, the video boards congratulated his team on its latest championship.

The Dodgers owner who lives and breathes championships smiled broadly. Magic Johnson always does, of course. This time, he had an impish twinkle in his eye.

“They said we ruined baseball,” Johnson said. “Well, I guess we didn’t.”

If you are not in Los Angeles, you might be screaming in frustration. The team with all the gold makes the rules, and the new rule is that the Dodgers win every year, and now their most famous owner is mocking you?

He is not.

He is, however, issuing a subtle warning to all of baseball’s owners: Don’t let your desperation for a salary cap destroy a sport on the rise — in no small part thanks to the Dodgers.

The NBA was not much more than a minor league 45 years ago. This is crazy to imagine now, but the NBA Finals aired on tape delay, on late-night television, most often at 11:30 p.m. The NBA audience was so small that advertisers would not pay prime-time rates for those commercials, so the games were not broadcast in prime time.

Johnson helped change that. The rivalry between his Lakers and Larry Bird’s Celtics revived the NBA, and then Michael Jordan and the Chicago Bulls became global sporting icons.

From 1980-88, either the Lakers or the Celtics won the NBA title in every year but one. From 1991-98, the Bulls won six titles.

The Celtics and Lakers and Bulls did not ruin the NBA.

“What the Celtics and Lakers were able to do, and Michael Jordan’s Bulls, was to bring in new fans — fans that were, ‘Oh, I don’t know about the NBA,’” Johnson said, “but the play was so good, and the Celtics and Lakers and Bulls were so dominant, people said, ‘Oh man, I want to watch them.’

“It’s the same thing happening here.”

The NBA leadership could not believe its good fortune. Baseball’s leadership appears intent on lighting its good fortune on fire.

“My phone was blowing up with people who hadn’t watched baseball for a long time,” Johnson said. “They were watching this series.

“This was good for baseball around the world.”

The World Baseball Classic is four months away. The World Series most valuable player, the Dodgers’ Yoshinobu Yamamoto, is from Japan.

So is the Dodgers’ Shohei Ohtani, the closest baseball has ever had to its own Jordan. The Dodgers rescued him from purgatory in Anaheim and surrounded him with a star-studded roster, and now he makes more money from pitching products than pitching baseballs. To the Dodgers, he doubles as an All-Star and cash machine.

The league — and all the owners complaining about the Dodgers and their spending — happily profited from this traveling road show. The Dodgers get the same share of international merchandise and broadcast revenue every other team does.

The Dodgers led the major leagues in road attendance, again. The league sent the Dodgers to Seoul last spring and Tokyo this spring, meaning that, for two years running, they were one of the first two teams to report to spring training and one of the last two playing at season’s end. The league’s television partners rushed to book the Dodgers, even for games at times inconvenient to the team.

“MLB put us in every hard situation you can think about,” infielder Miguel Rojas said. “We never complained. We were trying to come through for the fans, for baseball, and everybody should be recognizing what we are doing.”

With the Blue Jays in the World Series, Canadian ratings for the World Series increased tenfold. The Dodgers did not destroy the Jays. They survived them, and barely at that.

The Dodgers have not ruined competition, despite the spotlight.

“They have a great team,” Toronto infielder Ernie Clement said. “There’s no denying it. They’re one of the best teams probably ever put together, and we’ve taken ‘em to seven games, so that’s got to say something about us.”

Toronto manager John Schneider said his team, which won more games than the Dodgers this season, had chances to sweep the World Series.

“People were calling it David versus Goliath,” Schneider said, shaking his head from side to side. “It’s not even… close.”

The Dodgers make a lot of money, pour the money back into the team, and win. They give the people what they want.

“People want the best,” co-owner Todd Boehly said.

Granted, not every team can spend like the Dodgers. Most cannot, and baseball should be able to find ways to share the wealth without risking its tenuous but growing popularity by locking out players in pursuit of a salary cap.

After all, isn’t a compelling product with stars from home and abroad good for baseball?

“You bet,” controlling owner Mark Walter said. “I think they think so, too.”

It was time to go. The parade was 36 hours away, and Johnson had to rest his throat.

“I’m hoarse,” he said. “I’ve never been hoarse.”

So we’ll leave you with one bit of sports trivia, in response to the mistaken notion that a salary cap assures competitive balance: In the Magic, Bird and Jordan years, the ones that lifted the NBA into popular culture, did the NBA have a salary cap?

It did then. It does now. Onto the quest for a three-peat.

Highlights from the Dodgers’ 5-4 win in 11 innings over the Blue Jays in Game 7 of the World Series.