The National Basketball Association (NBA) has officially begun an investigation into the Los Angeles Clippers and star forward Kawhi Leonard concerning allegations of salary cap circumvention. The reports suggest that the Clippers and their owner, Steve Ballmer, may have facilitated a secret payment arrangement designed to skirt the NBA’s salary cap rules.
According to a detailed report by Pablo Torre, a podcaster and former ESPN contributor, the Clippers allegedly funneled $28 million to Leonard through a now-bankrupt sustainability company named Aspiration. Ballmer had invested $50 million in Aspiration via his personal LLC in September 2021. Subsequently, the Clippers entered a $300 million partnership with Aspiration for jersey sponsorship and arena naming rights.
The core of the allegations is that Leonard’s endorsement deal for four years and $28 million through his LLC, KL2 Aspire, was orchestrated to bypass the salary cap restrictions. This endorsement deal was signed in April 2022, several months after Leonard committed to a four-year, $176.3 million contract with the Clippers, which was the maximum allowed under the NBA collective bargaining agreement at that time.
Documents cited by Torre, revealed on his podcast “Pablo Torre Finds Out,” include internal records from Aspiration suggesting the arrangement was structured as a “no-show job” — a payment arrangement requiring Leonard to remain on the Clippers’ roster while receiving the sponsorship funds indirectly from Ballmer’s investment in Aspiration.
In response to these claims, the Clippers have issued a strong denial. The team’s statement emphasized that neither they nor Ballmer circumvented the salary cap, calling the allegations “absurd.” They clarified that Ballmer’s investment in Aspiration was motivated by the company’s environmental goals, not to funnel money to Leonard.
Furthermore, the Clippers indicated that they had no knowledge of any improper dealings by Aspiration or its co-founder Joseph Sanberg until government investigations began. Sanberg has since pleaded in a $243 million fraud case, and Aspiration filed for bankruptcy in March 2025 after ending its sponsorship relationship with the Clippers roughly three years earlier.
The NBA has acknowledged the media reports and stated it is commencing an investigation into the matter. A league spokesman, Mike Bass, remarked on the situation following the public disclosures. The outcome of this investigation could have significant implications for the Clippers organization and Kawhi Leonard’s contract status.
Kawhi Leonard, currently 34, remains under contract with the Clippers through the 2026-2027 NBA season, following a lucrative deal that secured his services as a cornerstone of the franchise. This investigation highlights increasing scrutiny on salary cap compliance and the sophisticated methods reportedly used to evade established financial regulations within the NBA.
This developing situation underscores the league’s commitment to enforcing salary cap rules designed to maintain competitive balance and financial fairness among teams. Fans and analysts alike will be closely watching the NBA’s findings and any disciplinary actions that may ensue.