Earlier this year, we witnessed extensive wildfires across Los Angeles. For those not familiar with the area, the devastation was starkly captured in news reports: neighborhoods reduced to rubble and residents grappling with the aftermath.
I found myself in the region during January, having returned from New York to attend a family funeral. As a journalist focused on climate issues, I was grateful not to be reporting live on this crisis but, rather, supporting my family while keeping an eye on which freeways were closed due to the fires, and whether they might affect our ability to attend the service.
Such experiences have become increasingly common in Southern California. The situation is exacerbated by climate change, where rising temperatures and prolonged drought conditions dry out the environment, creating ample fuel for wildfires. When I relocated back to California this spring, my editor inquired about what I would miss most from New York. My answer was water—specifically, the assurance of using it without guilt about conservation.
Climate change is particularly challenging in Los Angeles
This context leads to an unexpected tie-in with recent controversies surrounding the Los Angeles Clippers. Allegations have surfaced that franchise owner Steve Ballmer, a former Microsoft CEO, possibly circumvented the NBA’s salary cap rules through unconventional means involving carbon credits to retain star player Kawhi Leonard.
This potential scandal, which has garnered significant attention, could challenge the integrity of a system designed to promote fairness across the league, regardless of the financial power of its owners. Furthermore, this incident connects to broader environmental concerns, with alleged rule bending under the pretense of ecological responsibility adding a layer of offense to a community already grappling with climate-related issues.
Understanding these allegations has been complicated, even for a journalist well-versed in environmental controversies. Hats off to journalist Pablo Torre, who recently exposed the unfolding story on his podcast. He investigated bankruptcy filings and spoke with former employees of Aspiration, a self-proclaimed “climate-friendly” banking institution closely linked to Ballmer.
According to the findings, Leonard reportedly signed a $28 million endorsement deal with Aspiration. This arrangement is said to allow the Clippers a loophole in circumventing the NBA’s salary cap, which aims to distribute talent evenly throughout the league. Aspiration had secured similar endorsement deals with notable celebrities such as Leonardo DiCaprio, Robert Downey Jr., and Drake, yet Leonard did not engage in any promotional activities for the brand. Strikingly, Aspiration did not even announce Leonard’s endorsement publicly. Concurrently, Ballmer made a personal investment of $50 million in Aspiration, raising suspicions that these funds could have financed Leonard’s no-show role.
In what capacity would Leonard have promoted Aspiration? The bank aimed to assist companies, including major players like Microsoft and Meta, in purchasing carbon credits to offset their greenhouse emissions. Aspiration also partnered with the Clippers on a substantial sponsorship deal for their new arena, the Intuit Dome, valued at $300 million, with a commitment to operate 100% carbon-free. Ballmer stated that constructing an environmentally conscious arena comes with significant responsibility.
In a recent development, Torre’s podcast revealed that the Clippers made payments to Aspiration totaling $56 million for carbon credits in 2022, purportedly to mitigate the Intuit Dome’s carbon emissions. Curiously, these payments coincided with the period Leonard was allegedly receiving compensation. Reports indicate that by 2024, the Department of Justice had begun investigating Aspiration over claims of misleading green credit offers. The company filed for bankruptcy in March, and earlier this summer, cofounder Joseph Sanberg entered a guilty plea for defrauding investors in a scheme totaling $248 million.
The Clippers have not responded to inquiries from the media regarding the ongoing scandal, nor have they clarified if the Intuit Dome is indeed carbon neutral and whether that status depends on the carbon credits from Aspiration. A recent statement from the franchise suggested that while they engaged in buying carbon credits through Aspiration, Ballmer claims to have been misled in his investments and contractual agreements. The Clippers denied breaching the salary cap, although the NBA has opened an inquiry into their practices.
As a side note, I write this from a household that proudly supports the Lakers, where conversations about the Clippers have dominated dinner discussions due to this brewing scandal.
This situation is far from an isolated incident surrounding carbon credits, which often fuel corporate greenwashing
This case highlights ongoing issues with carbon credits, which are frequently linked to corporate greenwashing. Each carbon credit is intended to represent a metric ton of CO2 emissions either captured or avoided, typically through efforts like reforestation. Although companies and individuals purchase these credits to mitigate their carbon footprints, the environmental gains are often overstated or, in some instances, non-existent. The durability of newly planted trees and the legitimate impact of such initiatives are subject to considerable debate.
Before the revelations surrounding Aspiration emerged, Ballmer had already embraced what many refer to as a questionable approach to addressing climate change through carbon offsets. In Los Angeles, the tangible consequences of climate change are evident. The wildfire season has lengthened significantly due to human-induced climate change. The January fires that ravaged parts of Los Angeles County claimed at least 31 lives and destroyed thousands of structures. Climate studies indicate that increased temperatures contributed to the fire’s conditions, making such events significantly more probable.
Moreover, the health risks posed by wildfire smoke have escalated, potentially leading to a rise in premature deaths due to worsening air quality. Heightened smog levels are another consequence of climate change, as emissions from vehicles and power plants contribute to ozone pollution, which becomes more formidable during hotter conditions.
As I write from my backyard, I am reminded of the current air quality, which has been designated as unhealthy for sensitive populations. This condition mirrors today’s levels with those from yesterday. Notably, I reside in proximity to Leonard’s hometown; both of us grew up in the Inland Empire, an area notorious for its pollution according to the American Lung Association.
This personal connection deepens the disappointment—rooting for a local figure only to feel let down by their actions.
