U.S. Attorney's Offense Investigating Contract NBPA Signed With Investment Firm
The U.S. Attorney's office is investigating the authenticity of a National Basketball Players Association contract that authorized future payment of more than $3 million to Prim Capital, according to sources.
Prim Capital is an investment firm that employed the son of executive director Billy Hunter.
The agreement called for a "five-year term, stretching from the date of execution, that cannot be cancelled or revoked while in effect for any reason by the NBPA." Under terms of the deal, the NBPA would pay Prim $602,000 per year.
"In our opinion, this provision is highly unusual and inconsistent with normal business practices," the Paul-Weiss report said.
Prim Capital hired Hunter's son, Todd, in 2002, and has provided financial services to the NBPA since 2003.