The Los Angeles Clippers are under scrutiny after reports emerged alleging that the team circumvented the NBA salary cap through an endorsement deal involving star forward Kawhi Leonard. The revelation has sparked an NBA investigation into the nature of Leonard’s contract and the financial arrangements surrounding it.
According to multiple sources, including a detailed report from The Athletic, Leonard’s uncle and longtime advisor, Dennis Robertson, reportedly sought improper benefits during Leonard’s free agency process in 2019. These benefits allegedly included part ownership of the Clippers, guaranteed private plane access, housing arrangements, and notably, off-court endorsement money linked to Leonard’s commitment to the team—elements that fall outside the NBA’s collective bargaining agreement (CBA).
The centerpiece of controversy is a so-called “no-show” endorsement deal reportedly worth $28 million, which was structured in a way that blurred typical boundaries. The deal, funded by Clippers owner Steve Ballmer, included termination clauses that made the endorsement conditional on Leonard being an active Clippers employee. This unusual stipulation led to questions about whether the payments effectively functioned as concealed salary increases or benefits that skirted the NBA’s salary cap rules.
Reports detail that if Leonard were to leave the Clippers, the endorsement deal could be terminated, indicating that it was tightly linked to his presence on the team rather than general promotional efforts. This arrangement differs significantly from standard endorsement contracts, which are usually player-centric and not contingent on team employment.
This is not the Clippers’ first brush with salary cap-related violations. In 2015, the franchise was fined $250,000 for offering an unauthorized endorsement contract to DeAndre Jordan. While no conclusive proof has yet emerged that Leonard or the Clippers intentionally violated league rules, these allegations and the investigation cast a shadow over the team’s financial dealings.
NBA officials have confirmed they are reviewing the matter thoroughly, considering the implications of the endorsement deal on salary cap integrity and league compliance. The Clippers have remained silent publicly on the investigation, while speculation continues about the impact on the team’s roster construction and future contracts.
Should the league find that the Clippers consciously circumvented the salary cap, the Clippers could face significant repercussions, including fines, loss of draft picks, or voided contracts. Such outcomes would also deepen concerns about the ongoing challenges the NBA faces in policing complex financial arrangements designed to maximize player compensation beyond official salary limits.
The Kawhi Leonard case highlights the intricate nature of modern NBA contracts where endorsements, ownership stakes, and private arrangements increasingly intersect with league salary regulations. As the investigation unfolds, teams and players alike will be watching closely for how the NBA enforces rules to maintain competitive balance and financial fairness.