Clippers in Hot Water? Report Claims $28 Million Kawhi Leonard Deal Skirted NBA Salary Cap

The LA Clippers and team owner Steve Ballmer are facing serious questions after fresh reports suggested the franchise may have bypassed NBA salary cap rules by funneling $28 million to star forward Kawhi Leonard through a “no-show job.”

The allegation surfaced Wednesday on the Pablo Torre Finds Out podcast, where the former ESPN journalist cited internal documents from Aspiration, a now-bankrupt company backed by Ballmer. According to Torre, Leonard signed a four-year endorsement deal worth $28 million with Aspiration in 2022—just months after inking his maximum four-year, $176.3 million contract with the Clippers.

The NBA confirmed it is investigating the matter. “We are aware of this morning’s media report regarding the LA Clippers and [are] commencing an investigation,” league spokesman Mike Bass said in a statement.

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Inside the Alleged Deal

Aspiration, a financial services startup, received a $50 million personal investment from Ballmer in September 2021. Just weeks later, the Clippers announced a $300 million sponsorship agreement with the company, which included jersey patches and naming rights deals tied to the team’s new arena.

By April 2022, Leonard’s company KL2 Aspire had signed its $28 million endorsement contract with Aspiration. One clause reportedly tied the deal directly to his presence with the Clippers—if Leonard left the team, the agreement would be void.

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An ex-employee of Aspiration told Torre that the payments were specifically designed “to circumvent the salary cap.”

Clippers Fire Back

The Clippers strongly denied the allegations, calling them “provably false.” The team noted its partnership with Aspiration ended during the 2022-23 season after the company defaulted on obligations.

“Neither Mr. Ballmer nor the Clippers circumvented the salary cap or engaged in any misconduct related to Aspiration,” the team said in a statement. “The notion that Steve invested in Aspiration in order to funnel money to Kawhi Leonard is absurd.”

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The Clippers added that sponsors frequently strike independent endorsement deals with players, and that the team had no involvement in Leonard’s arrangement. “The Clippers take NBA compliance extremely seriously,” the statement said, while welcoming the league’s investigation.

What Penalties Could Follow?

Under the NBA’s collective bargaining agreement, cap circumvention carries stiff punishments, including fines up to $7.5 million, loss of draft picks, voided contracts, and suspensions of team personnel for up to a year.

The league has handed down harsh penalties in the past. In 2000, the Minnesota Timberwolves were stripped of five first-round picks and fined $3.5 million after secretly promising forward Joe Smith a lucrative future deal.

Clippers’ History With League Scrutiny

This is not the first time the Clippers have been investigated in relation to Leonard. In 2019, the NBA fined the team $50,000 twice—first for tampering, and later for comments about Leonard’s health. That same year, reports alleged Leonard’s camp demanded improper perks like part ownership of a team, private planes, and guaranteed endorsement money during free agency.

In 2020, a lawsuit accused the Clippers of using a consultant to help secure Leonard’s signing for $2.5 million. The case was dismissed and no penalties followed.

Most recently, Leonard signed a three-year, $153 million extension in January 2024, keeping him under contract until the 2026-27 season. But the Clippers remain embroiled in a separate lawsuit from ex-strength coach Randy Shelton, who alleged wrongful termination after raising concerns over Leonard’s injury management.

What’s Next?

Aspiration filed for bankruptcy in March 2025, and its co-founder Joe Sanberg pleaded guilty in August to two counts of wire fraud, admitting to defrauding investors of more than $248 million. Those revelations only add fuel to the questions now surrounding Leonard’s deal.

For now, the Clippers say they will cooperate fully with the NBA probe. Whether the league comes down hard—as it did with the Timberwolves two decades ago—remains to be seen.