NBA Launches Investigation into Clippers and Kawhi Leonard Over Alleged Salary Cap Circumvention
The National Basketball Association (NBA) announced on Wednesday that it is officially investigating the Los Angeles Clippers and star forward Kawhi Leonard amid allegations of circumventing the league’s salary cap rules through a $28 million endorsement deal.
The probe centers on Leonard’s endorsement contract with Aspiration Fund Adviser, LLC, a California-based sustainability company that filed for bankruptcy earlier this year. The company reportedly had close financial ties to the Clippers and Clippers owner Steve Ballmer, who invested $50 million personally into Aspiration through his own LLC. The Clippers and Aspiration also entered into a $300 million partnership in September 2021, shortly after Leonard signed a four-year, $176 million maximum contract extension with the team.
According to investigative journalist Pablo Torre, who first reported on the complex arrangement, Leonard was paid $28 million through KL2 Aspire LLC, a company registered under his initials and jersey number, between 2022 and 2025 for endorsement services. However, allegations suggest this payment was effectively for a “no-show job,” designed to secretly funnel money to Leonard without counting against the Clippers’ NBA salary cap.
The NBA’s spokesman Mike Bass confirmed the league’s awareness and the initiation of a formal investigation in response to media reports. “We are aware of this morning’s media report regarding the LA Clippers and are commencing an investigation,” Bass said.
The Clippers have vehemently denied any wrongdoing or salary cap violations. In an official statement, the team asserted, “Neither the Clippers nor Steve Ballmer circumvented the salary cap. The notion that Steve invested in Aspiration in order to funnel money to Kawhi Leonard is absurd. Steve invested because Aspiration’s co-founders presented themselves as committed to doing right by their customers while protecting the environment.” They added that they were unaware of any improprieties until investigations into Aspiration began.
Steve Ballmer’s investment and the partnership with Aspiration have come under intense scrutiny, especially given the company’s bankruptcy filing and the guilty plea of its co-founder, Joseph Sanberg, in a $243 million fraud case. Court documents showed that Aspiration owed significant sums to the Clippers and KL2 Aspire.
The situation has drawn attention and opinions from NBA insiders and former executives. Notably, former Dallas Mavericks owner Mark Cuban expressed his support for Ballmer on social media, stating skepticism about the alleged scheme’s existence and pointing out the high-profile financial transparency around the bankruptcy.
Kawhi Leonard has remained publicly silent on the matter. The investigation’s outcome could have significant implications for the Clippers, Leonard, and the NBA’s enforcement of salary cap rules designed to maintain competitive balance.
This development is one of the most high-profile financial allegations involving an NBA team in recent years. The league’s investigation is ongoing, and further updates are expected as the NBA probes the contractual and financial links between Leonard, the Clippers, and Aspiration.