NEW YORK— Pablo Torre set off a firestorm this summer. His reporting detailed suspicious financial ties between Kawhi Leonard, a bankrupt tree brokerage, and Clippers ownership. The fallout has become one of the NBA’s biggest scandals in years. The Clippers and Kawhi Leonard are set to face severe penalties from the league if found guilty according to senior NBA insider, John Hollinger of the Athletic.
Clippers Face Double Jeopardy Penalty In Kawhi Leonard Scandal
A Deepening Investigation
The NBA has hired Wachtell, Lipton, Rosen & Katz to investigate allegations of cap circumvention. Commissioner Adam Silver called the law firm “the big guns.” He made clear that the league is treating the case with unusual seriousness.
At issue is whether Leonard’s relationship with Aspiration, the bankrupt firm, amounted to a “no-show” endorsement deal meant to dodge salary cap rules. The investigation’s results may not come for months.
As The Athletic’s John Hollinger writes: “There is not, at least as of yet, a smoking gun that ties Clippers owner Steve Ballmer’s and minority owner Dennis Wong’s investments in Aspiration to the payments the company made to Leonard, even if the timing and amounts of the investments are clearly suspicious.”
What The Clippers Could Face
The penalties are outlined in Article XIII of the CBA. They are sweeping. They could include:
- Up to $7.5 million in fines for the Clippers.
- Up to $350,000 in fines for Leonard.
- Forfeiture of draft picks.
- Suspensions of Ballmer or other team officials for up to a year.
- Voiding Leonard’s contract and banning him from re-signing with the Clippers.
- Requiring Leonard to return Aspiration’s money.
The penalties are more punitive for the Clippers than Kawhi Leonard.
Precedent And Severity
The Joe Smith case in 1999 offers precedent. Minnesota lost five first-round picks for violations many consider less severe. Hollinger notes, “The NBA can’t take more than five first-round picks from the Clippers, though, because they only have five left to be penalized.”
Those include their own picks in 2030, 2031, and 2032, plus swaps in 2027 and 2029. Second-rounders and other partial rights could also vanish. The league may reinstate picks later, as it did in Minnesota, if the Clippers ‘behave themselves.’
Suspending Ballmer would hit personally. He is beloved around the league for his passion, so removal from his team would sting deeply. Wolves owner Glen Taylor endured nine months away for a lesser infraction.
The Kawhi Contract Question
The most volatile punishment involves Leonard’s contract. The league could void it outright. That would create two distinct possibilities.
One scenario leaves $50 million of dead money on the books in 2026–27 without Leonard on the court. The other removes his salary completely, creating unexpected cap space for the Clippers. Rival owners dread this outcome, which could let the Clippers pivot away from an injury-prone star earlier than expected.
Hollinger poses a middle-ground solution: “A more interesting question, perhaps, is whether the commissioner could put the money Leonard received from Aspiration onto the Clippers’ 2026-27 cap, as this had never been charged to their books in any previous season.” That would punish the Clippers while satisfying owners who want the team to pay luxury tax on past under-the-table payments.
Why The Stakes Are So High
The penalty the Clippers and Kawhi Leonard face cuts deeper than fines. Draft picks, suspensions, and contract voiding reshape the franchise’s future. It also tests the league’s willingness to confront wealthy owners and stars when rules appear bent.
For now, the investigation continues. The NBA will weigh precedent, fairness, and optics. But if the evidence proves true, the Clippers could face double jeopardy: losing both their star and their flexibility.
Credit: Ron Chenoy-Imagn Image
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