Kawhi Leonard Revealed as Investor in Rhode Island Soccer Project

NBA superstar Kawhi Leonard is one of the long-hidden investors behind a controversial, taxpayer-funded Rhode Island soccer project, as uncovered by a 10-month investigation by Target 12. The investigation, conducted in collaboration with the "Pablo Torre Finds Out" podcast and Hunterbrook, reveals that Leonard and his associates became involved in the Rhode Island Football Club during a tumultuous period marked by the collapse of a multimillion-dollar endorsement deal.

Why it matters: Leonard's undisclosed role in the Rhode Island FC ownership raises questions about transparency and accountability in public funding for sports ventures. With over $130 million invested in the new stadium, taxpayers deserve clarity on who benefits from their contributions.

• The Rhode Island FC is building a new 10,000-seat stadium in Pawtucket, costing more than $130 million.
• Leonard's involvement was not known to key local officials, including Governor Dan McKee and Pawtucket Mayor Don Grebien, until recently.
• Rhode Island FC has never publicly disclosed the full list of its ownership group, raising concerns about transparency.

Driving the news: The investigation revealed that Leonard, along with his uncle Dennis Robertson and former agent Mitch Frankel, are categorized as small investors in the club. Rhode Island FC founder Brett Johnson confirmed their roles, indicating that they became involved around the same time Johnson was struggling to secure private financing for the stadium.

• Johnson described Leonard and his associates as "small investors" who have been quietly backing the club.
• Johnson emphasized the importance of confidentiality for investors, stating that it's atypical for capital-raising efforts.
• In a surprising twist, even local leaders were unaware of Leonard's financial commitment until questioned by reporters.

State of play: Leonard, a two-time NBA champion and one of the league's most recognized figures, has maintained a low profile in Rhode Island FC's promotional activities. Unlike other teams that highlight celebrity involvement, Rhode Island FC has kept Leonard's stake out of the public eye.

• There is no public record of Leonard attending a game or being featured in promotional materials for the team.
• In comparison, other franchises openly promote their celebrity owners, such as Russell Westbrook and Marshawn Lynch.
• Johnson defended the decision to keep investor identities confidential, arguing it protects their interests.

The big picture: Leonard's investment comes at a time when his business dealings are under scrutiny due to allegations involving a sponsorship deal with Aspiration Partners Inc., which was accused of being a vehicle for circumventing the NBA's salary cap. This backdrop adds complexity to his involvement in the Rhode Island project.

• The Clippers ended their sponsorship deal with Aspiration as federal investigations unfolded, leading to an internal NBA probe.
• Leonard's association with Aspiration and the subsequent fallout may impact public perception of his investment in Rhode Island FC.
• As taxpayers back the stadium with $60 million in bonds, questions about the motivations behind Leonard's investment become increasingly relevant.

What they're saying: Local officials expressed surprise at Leonard's involvement. Pawtucket Mayor Don Grebien noted, "If I were them, I’d be shouting it because of the positivity it brings to the organization." Similarly, Governor McKee admitted he was unaware of Leonard's stake, stating, "I knew there were some players that were involved in it." This lack of awareness among key political figures highlights the need for greater transparency in publicly funded projects.

• Mayor Grebien provided political support for the stadium, emphasizing the positive economic impact it could have on the city.
• Governor McKee acknowledged his support for the soccer club but could not recall discussions about Leonard's involvement.
• McKee jokingly mentioned, "He was on my fantasy basketball team this year," indicating his familiarity with Leonard as a player rather than as an investor.

By the numbers: The financial implications of this project are staggering. Taxpayers are expected to spend nearly $117 million over the next three decades to pay back the bonds issued for the stadium.

• The Rhode Island FC stadium project has received $27 million in public subsidies.
• Bloomberg News previously described the bond deal as "eye-popping," illustrating the financial burden on local taxpayers.
• Johnson's firm has also pursued additional taxpayer-backed subsidies for housing developments associated with the stadium.

What's next: As the Rhode Island FC moves forward with its plans, the identities of other investors remain undisclosed, leaving many questions unanswered about who else is financing this heavily subsidized development. Johnson stated that Leonard and his associates are interested in real estate investments, particularly in low-income areas, but concrete plans for housing development have yet to materialize.

• Johnson has promised housing developments as part of the stadium project but has faced delays in bringing those plans to fruition.
• Local approvals for additional housing units have been secured, but completed units are still years away.
• As the investigation continues, the implications of Leonard's investment on public trust and future funding for similar projects will be closely watched.