Last Updated:September 05, 2025, 12:04 IST
The probe, triggered by a report from journalist Pablo Torre, raised questions about the financial relationship between Leonard and the Clippers.
LA Clippers’ Kawhi Leonard with team owner Steve Ballmer (X)
The NBA offseason took an unexpected turn this week after the league confirmed it is investigating whether a $28 million endorsement contract between Kawhi Leonard and a California-based sustainability firm may have allowed the Los Angeles Clippers to bypass salary cap restrictions.
The probe was triggered by a report from journalist Pablo Torre, which raised questions about the financial relationship between Leonard, the Clippers, and the now-bankrupt company Aspiration Fund Adviser LLC.
Hours after Torre’s report surfaced, the Clippers issued a strong denial of wrongdoing, stressing that they would fully cooperate with the league’s inquiry.
So, let us understand what truly has transpired so far:
What Is the NBA’s Salary Cap?
The NBA’s salary cap is designed to promote competitive balance across the league’s 30 franchises, which operate in vastly different markets, from New York and Los Angeles to smaller cities like Memphis or Salt Lake City.
For the 2025–26 season, the salary cap is set at $154.647 million, with a minimum team payroll of $139.182 million.
Teams are allowed to exceed the cap, but doing so triggers escalating penalties, such as luxury taxes, restrictions on free-agent signings, and limitations on roster construction.
What Is the Focus of the NBA’s Investigation?
The league’s inquiry centers on financial ties between Leonard, the Clippers, and Aspiration, which filed for bankruptcy in 2025.
Court filings from the bankruptcy case listed both the Clippers and KL2 Aspire LLC — a company managed by Leonard, according to California business records — as creditors. KL2 Aspire was reportedly owed $7 million.
Aspiration and Leonard had signed a $28 million endorsement agreement in 2021, structured as $7 million annually over four years.
Last month, Aspiration’s co-founder Joseph Sanberg agreed to plead guilty to federal wire fraud charges after prosecutors alleged he defrauded investors and lenders out of $248 million.
Court filings claimed that Aspiration’s financial statements had “reflected much higher revenue than the company in fact received.”
At the time of the company’s bankruptcy, Leonard was still due his final installment.
How Did the Clippers Respond?
The Clippers moved quickly to dismiss suggestions that the team or Ballmer had used Aspiration to funnel money to Leonard in violation of league rules.
In a statement Wednesday, the franchise declared:
“Neither the Clippers nor Steve Ballmer circumvented the salary cap. The notion that Steve invested in Aspiration in order to funnel money to Kawhi Leonard is absurd.”
“Neither Steve nor the Clippers had knowledge of any improper activity by Aspiration or its co-founder until after the government initiated its investigation.”
The Clippers also stressed that Leonard’s endorsement deal was independent of the team:
“There is nothing unusual or untoward about team sponsors doing endorsement deals with players on the same team. Neither Steve nor the Clippers organization had any oversight of Kawhi’s independent endorsement agreement with Aspiration. To say otherwise is flat-out wrong.”
What Are the Possible Penalties?
Kawhi Leonard, a two-time NBA Finals MVP and six-time All-Star, is one of the Clippers’ cornerstone players.
If the NBA concludes that salary cap rules were violated, the consequences could be severe. Sanctions include:
Fines of up to $7.5 million.The voiding of contracts.The loss of future draft picks.
Has Such An Incident Happened Before?
In 2000, then-commissioner David Stern punished the Minnesota Timberwolves after the team secretly arranged under-the-table payments to forward Joe Smith.
That case resulted in:
A $3.5 million fine.The suspension of owner Glen Taylor and coach Kevin McHale for one year.The forfeiture of multiple first-round draft picks.
(with AP inputs)
After training in the field of broadcast media, Siddarth, as a sub-editor for News18 Sports, currently dabbles in putting together stories, from across a plethora of sports, onto a digital canvas. His long-term…Read More
After training in the field of broadcast media, Siddarth, as a sub-editor for News18 Sports, currently dabbles in putting together stories, from across a plethora of sports, onto a digital canvas. His long-term… Read More
News18 Sports brings you the latest updates, live commentary, and highlights from cricket, football, tennis, badmintion, wwe and more. Catch breaking news, live scores, and in-depth coverage. Also Download the News18 App to stay updated!First Published:
September 05, 2025, 12:04 IST
News sports Explained: NBA’s Probe Into Kawhi Leonard, LA Clippers Over $28M Endorsement DealDisclaimer: Comments reflect users’ views, not News18’s. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
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