NBA training camps are set to open later this month, but the bombshell news around the league centers around the Los Angeles Clippers and Kawhi Leonard.
The league is investigating allegations that the Clippers facilitated a $28 million “no-show” endorsement deal for Leonard with a now-bankrupt sustainability company called Aspiration, allegedly in an effort to circumvent the NBA salary cap.
What are the allegations Kawhi Leonard and the Clippers are facing?
The Los Angeles Clippers reportedly facilitated a $28 million “no-show” endorsement deal for star Kawhi Leonard with a now-bankrupt sustainability company, allegedly in an effort to circumvent the NBA salary cap.
Sports reporter Pablo Torre of “Pablo Torre Finds Out” hosted an episode of his show that published Wednesday, September 3 in which he outlined the allegations. At the center of it is the now-bankrupt “green” financial services company called Aspiration.
Torre uncovered thousands of pages of legal documents, including a contract signed by Leonard for $28 million over a four-year term to market and endorse Aspiration, which previously received a significant investment from Clippers owner Steve Ballmer.
In the contract, a clause states that KL2 Aspire LLC, a company run by Leonard, could “decline to proceed with any action desired by the Company,” which set up a structure for Leonard to potentially receive payments without performing any work. Another clause states that Leonard would receive payments only if he continued to be a player on the Clippers.
What are potential penalties the Clippers, Steve Ballmer and Kawhi Leonard could face?
The NBA is investigating whether the Los Angeles Clippers and owner Steve Ballmer facilitated a $28 million “no-show” endorsement deal involving Kawhi Leonard and a now-bankrupt company, Aspiration Inc. The deal allegedly paid Leonard—via his LLC—without any promotional work performed, potentially bypassing salary-cap rules .
Potential Consequences (According to the NBA CBA and Precedent)
For the Clippers / Steve Ballmer:
Fines: A first offense could trigger a $4.5 million fine; a second offense might cost $5.5 million . Loss of Draft Picks: The team could forfeit a first-round draft pick . Void Contracts: The player contract in question (Leonard’s) could be voided . Suspensions: League rules allow for suspension of executives or staff, potentially including Ballmer himself .
This is comparable to the high-profile Joe Smith–Timberwolves case, in which Minnesota lost five first-round picks (though two were later returned), paid millions in fines, voided Smith’s contract, and suspended its owner and GM .
For Kawhi Leonard:
Void of Endorsement Contract: If the league deems the deal invalid, Leonard’s Aspiration-linked contract could be voided . Still, penalties for players in these cases are relatively rare—usually the team bears the brunt unless the player is involved in orchestrating the violation.
What’s Next
The NBA is actively investigating, and evidence may be direct or circumstantial. League rules allow for penalties even if no explicit documentation of wrongdoing exists . Commissioner Adam Silver has emphasized that salary-cap circumvention is a “cardinal sin” for the league . League owners (the Board of Governors) will ultimately vote on any sanctions . The Clippers and Ballmer deny any misconduct, maintaining that they had no involvement in Leonard’s endorsement contract and were defrauded like others by Aspiration’s founders.
Summary Table
Entity
Clippers / Ballmer
Potential penalty
• ~$4.5M fine (first offense)• Loss of first-round pick(s)• Executive suspensions• Possibility of voided contract(s)
Entity
Kawhi Leonard
Potential penalty
• Voidance of Aspiration endorsement contract• Limited direct penalties unless found complicit
Tags
- NBA Investigation 2025
- Los Angeles Clippers salary cap scandal
- Kawhi Leonard endorsement deal Controversy
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