2:54 pm: “We are aware of this morning’s media report regarding the L.A. Clippers and are commencing an investigation,” NBA spokesperson Mike Bass said in a statement, per Shams Charania of ESPN (Twitter link).
The Clippers, meanwhile, issued a longer statement to Steve Henson of The Los Angeles Times strongly denying that they engaged in any sort of cap circumvention.
“Neither Mr. Ballmer nor the Clippers circumvented the salary cap or engaged in any misconduct related to Aspiration,” the statement reads. “Any contrary assertion is provably false: The team ended its relationship with Aspiration years ago, during the 2022-23 season, when Aspiration defaulted on its obligations.
“Neither the Clippers nor Mr. Ballmer was aware of any improper activity by Aspiration or its co-founder until after the government instituted its investigation. The team and Mr. Ballmer stand ready to assist law enforcement in any way they can.”
Aspiration co-founder Joseph Sanberg pled guilty last month to two counts of wire fraud for a $248MM scheme to defraud lenders and investors.
8:01 am: A $28MM endorsement deal signed by Kawhi Leonard could land the Clippers in hot water with the league.
According to an investigation by ESPN’s Pablo Torre on his “Pablo Torre Finds Out” podcast (Twitter video link), Leonard performed no work for an allegedly fraudulent tree-planting company funded by $50MM from Clippers owner Steve Ballmer.
The endorsement deal could be construed as a means to circumvent the salary cap, which would carry heavy penalties from the league.
After leading the Raptors to the 2019 championship, Leonard declined his player option and became an unrestricted free agent. Leonard chose to sign with the Clippers on a three-year, $103.1MM deal in July of that year. He has subsequently signed a pair of extensions with the franchise.
The “tree brokerage” company named Aspiration filed for bankruptcy in March 2025. Among the list of creditors is KL2 Aspire LLC with Leonard named as the manager or member. The company owed KL2 Aspire LLC $7MM.
Torre couldn’t find any evidence that Leonard actually performed any work for the company, unlike other celebrity endorsers. Torre interviewed seven former employees of the company, one of whom provided a document showing Leonard was to receive $7MM over four years in the marketing agreement, which began in 2022. According to a former Aspiration employee who worked in the finance department, Leonard “didn’t have to do anything.”
The Clippers denied any wrongdoing. The organization provided Torre with a statement that read, “Neither Mr. Ballmer nor the Clippers circumvented the salary cap or engaged in any misconduct related to Aspiration. Any contrary assertion is provably false.”
Back in 2000, the league and then-commissioner David Stern issued harsh penalties against the Timberwolves due to salary cap violations. Minnesota signed former No. 1 overall pick Joe Smith to a series of one-year contracts below market value with the promise of giving him a long-term deal that would pay him up to $86MM over seven seasons.
As Spotrac contributor Keith Smith notes (Twitter link), Smith’s contract was voided and the Timberwolves were fined $3.5MM and had five first-round picks forfeited (the team later recouped two of those picks). Owner Glen Taylor was suspended and general manager Kevin McHale was forced to take a leave of absence.
For what it’s worth, Stern had a reputation for handing out harsher discipline than current commissioner Adam Silver. In recent years, teams found to have engaged in free agent gun-jumping or tampering violations have typically been docked a single second-round pick. However, if an NBA investigation determines the Clippers were circumventing the cap via this agreement with Leonard, it seems safe to assume the penalty would be more significant than that.