Clippers Forward, Kawhi Leonard Accused of Dodging NBA Salary Cap Rules

The practice of paying players outside the amounts established in their contracts by franchises is expressly prohibited by the NBA.

Mandatory Credit: Ron Chenoy-Imagn Images

Journalist Pablo Torre made a serious accusation this Wednesday involving winger Kawhi Leonard and the Los Angeles Clippers. Torre said, in an episode of his podcast ‘Pablo Finds Out’, that the player had received US$ 28 million in a sponsorship deal with the company Aspiration. However, he never took any public action to promote the company, which belongs to Steve Ballmer, majority shareholder of the Clippers.

Exclusive: Kawhi Leonard signed a $28M endorsement deal for a “no-show job” with a fraudulent tree-planting company funded by $50M from Clippers owner Steve Ballmer, according to documents obtained by @PabloTorre.

“It was to circumvent the salary cap,” an inside source says. pic.twitter.com/F6z5pNEkI1

— Pablo Torre Finds Out (@pablofindsout) September 3, 2025

The journalist conducted interviews with former employees of the company, which operated in the tree-planting industry and recently declared bankruptcy. According to the professionals, the practice was nothing more than a way to “circumvent” the NBA ‘s salary cap, allowing the athlete to receive higher salaries than those agreed upon in his contract.

In the documents obtained by Torre, KL2 Aspire, a company registered in Leonard’s name, was listed as one of the company’s creditors. However, the contract signed by the winger and Aspiration contained a clause that removed the obligation to participate in events or campaigns that “weren’t aligned with their personal beliefs.”

Furthermore, he would continue to be paid throughout his contract with the Clippers. Torre added that Ballmer could also be subject to investigations by the United States federal government for possible fraud.

What’s the Rule by the NBA on Such Practices? What’s the Past History of Such Incidents?

The practice of paying players outside the amounts established in their contracts by franchises is expressly prohibited by the NBA. This prohibition is formally outlined in the collective bargaining agreement signed jointly by the league and the players’ association.

The NBA has not yet commented on the case. However, given the serious nature of the allegations, it is expected to conduct an investigation into the agreement to determine whether or not it violated the collective bargaining agreement. Kawhi Leonard initially chose not to comment on the case.

May 23, 1994: “The NBA (it seems) will return to New Orleans.”

The Minnesota Timberwolves are reportedly being sold for $152.5 million and moved to New Orleans, where they’d be renamed the “Rhythm” or the “Angels,” and play home games in the Superdome in 1994-95.

📺 NBA on TNT pic.twitter.com/Xu3svr2zJd

— NBA Cobwebs (@NBACobwebs) May 23, 2023

Back in 1999, the Minnesota Timberwolves suffered severe punishment for a similar incident to that reported by Pablo Torre. At the time, the franchise persuaded forward Joe Smith to sign a contract with a salary lower than his market value, with the promise that he would receive a generous raise in a future deal.

The league found out and soon after stripped the team of three first-round draft picks. The penalty severely damaged the Wolves’ ambitions, as they, then led by Kevin Garnett, were trying to build a roster capable of competing at a high level in the Western Conference. Joe Smith contract was voided and the owner and VP were suspended because they tried to circumnavigate the salary cap.

Will Kawhi Leonard Face Consequences from the League?

If the NBA confirms the veracity of the complaint and finds the practice illegal, the Clippers could face similar punishment. It’s worth noting that, due to recent agreements, Los Angeles won’t regain control of its first-round picks until 2030.

Kawhi signed with the team during the 2019 offseason, still a free agent, on a three-year, $103.3 million contract. Since then, he has signed two maximum extensions. The first in 2021, for four years and $176.2 million, and the second last year, for three years and $149.5 million.

Mandatory Credit: Ron Chenoy-Imagn Images

Gulshan Sharma

Gulshan Sharma is a passionate writer with a love for storytelling. With a keen interest in Sports Journalism, he aim to craft engaging and thought-provoking content that resonates with readers.