The allegations
According to reporting from Pablo Torre Finds Out, the Los Angeles Clippers and owner Steve Ballmer allegedly funnelled $28 million to Kawhi Leonard through a now-bankrupt company, Aspiration, in what a former employee described as a scheme to “circumvent the salary cap”.
Internal documents reportedly show that Leonard's endorsement contract with Aspiration is tied directly to his continued presence with the Clippers, raising concerns about whether the deal was truly independent of his on-court employment.
The NBA has since confirmed that it has opened a formal investigation.
Exclusive: Kawhi Leonard signed a $28M endorsement deal for a "no-show job" with a fraudulent tree-planting company funded by $50M from Clippers owner Steve Ballmer, according to documents obtained by @PabloTorre.
"It was to circumvent the salary cap," an inside source says. pic.twitter.com/F6z5pNEkI1
— Pablo Torre Finds Out (@pablofindsout) September 3, 2025
Why this matters
Salary cap circumvention is one of the league's most serious violations. The NBA's competitive balance relies on each team operating within the same financial framework. If the Clippers are found to have used an outside company, partially funded by Ballmer himself, to pay Leonard beyond his $176.3 million contract, the team could face harsh penalties.
Under the league's current collective bargaining agreement, penalties for salary cap circumvention can be severe. Teams found guilty risk multi-million dollar fines, the loss of future draft picks, contracts being voided, and even year-long suspensions for team executives.
History offers a reminder of how severe the league can be. In 2000, the Timberwolves lost five first-round picks and paid $3.5 million in fines for a secret deal with Joe Smith.
Firm denials
The Clippers have released a statement strongly pushing back, calling such allegations "absurd".
They emphasised that there is "nothing unusual" and that Ballmer's investment in Aspiration was rooted in the company's stated mission to serve customers and protect the environment.
Team representatives assert they were unaware of any wrongdoing until Aspiration's fraudulent actions came under government scrutiny. Aspiration was a sponsor only during the 2021–2023 seasons, and the Clippers had no oversight of Leonard's separate endorsement agreement with the company.
Kawhi Leonard
Leonard has been at the centre of league controversy since joining the Clippers in 2019. From tampering fines tied to Doc Rivers' comments, to lawsuits alleging improper recruitment payments, to ongoing questions about his "load management", Leonard's LA career has been anything but quiet.
This latest investigation only adds to the turbulence. Leonard, now 34, is signed through 2027 on a $153 million deal. Should the NBA find evidence of wrongdoing connected to his earlier contract, the consequences could ripple through both his legacy and the Clippers' long-term future.
Bigger picture
This story isn't just about the Clippers; it's about the fine line between legitimate endorsements and illegal circumvention, a line that grows increasingly blurred as players, teams, and sponsors become more interconnected. The NBA has worked hard to tighten transparency around its cap system, especially with harsher penalties under the new CBA.
The investigation's outcome carries significant weight. If wrongdoing is confirmed, the Clippers could face severe consequences that reshape their future. If not, the case still underscores how easily high-profile partnerships can spark controversy and test the league's rules. For now, the Clippers insist they welcome the investigation, but all eyes will remain on how the league handles the matter.
