Lead: On Sept. 3–4, 2025 the NBA said it has opened an investigation after a podcast report alleged that Los Angeles Clippers star Kawhi Leonard received a four‑year, $28 million endorsement from Aspiration—an environmental firm partly funded by Clippers owner Steve Ballmer—as a potential means to circumvent league salary‑cap rules; the Clippers and Ballmer deny any wrongdoing and the league has begun fact‑finding.
Key Takeaways
- The NBA confirmed it is investigating a media report tying the Clippers and Kawhi Leonard to an Aspiration endorsement allegedly used to avoid salary‑cap limits.
- Podcast reporting claims Leonard received a four‑year, $28 million deal from Aspiration in 2022; public filings show a related entity claims $7 million owed.
- Aspiration filed for bankruptcy in March 2025 after co‑founder Joseph Sanberg faced fraud charges and later pleaded guilty to a $243 million fraud.
- The Clippers and owner Steve Ballmer deny funneling money to Leonard and say they lacked knowledge of Aspiration’s alleged fraud.
- The NBA previously reviewed aspects of Leonard’s 2019 free‑agency process; no team sanctions were publicly announced then.
- League rules bar teams from paying players through outside arrangements; proven circumvention can trigger fines, lost draft picks, voided contracts and suspensions.
Verified Facts
Reporting that prompted the league review appeared on the podcast “Pablo Torre Finds Out” and was distributed through The Athletic’s network. Multiple former Aspiration employees, speaking anonymously to the program, said Aspiration arranged a $28 million endorsement for Leonard starting in 2022. The Athletic and public court documents identify a business entity, KL2 Aspire, listing Leonard as manager and claiming it is owed $7 million.
Aspiration, which Clippers ownership had financially supported, filed for bankruptcy in March 2025 after federal authorities brought charges related to investor fraud. In August 2025, Aspiration co‑founder Joseph Sanberg pleaded guilty to a fraud scheme prosecutors say involved roughly $243 million. Bankruptcy records reviewed by reporters list the Clippers as one of Aspiration’s largest creditors, claiming about $30 million.
The NBA confirmed it is “commencing an investigation” following the media report, per league spokesman Mike Bass. The Clippers issued a statement denying any attempt to circumvent the salary cap, saying Ballmer invested in Aspiration based on its stated mission and that the team had no oversight of Leonard’s independent endorsement deals.
League records show the NBA previously examined aspects of Leonard’s 2019 free agency amid reports about requests from his designated representative. Leonard signed with the Clippers in 2019 on a three‑year, $103 million deal, then accepted a four‑year, $176 million extension in 2021 and a three‑year, $153 million extension in 2024.
Context & Impact
The NBA strictly prohibits teams from using outside parties to funnel compensation to players in ways that evade the salary cap. If the league finds evidence of circumvention, potential penalties for a first offense can include fines up to $7.5 million, forfeiture of draft picks, voiding of contracts or extensions, player fines up to $350,000 and personnel suspensions.
Commercial relationships between sponsors and players are common in professional sports, and teams often list sponsors publicly. The investigative focus here is whether payments were arranged or coordinated specifically to affect a player’s contractual or cap status rather than normal endorsement commerce.
For the Clippers, scrutiny could affect past contract approvals, current roster planning and the franchise’s public standing. For the broader league, a high‑profile finding of circumvention would likely prompt stricter oversight of team‑related investments and third‑party commercial deals.
Possible Consequences
- Financial penalties and loss of draft assets for the team.
- Contract voiding or renegotiation for the player if a direct circumvention is proven.
- Increased league audits of team‑affiliate partnerships and sponsor agreements.
Official Statements
“Neither the Clippers nor Steve Ballmer circumvented the salary cap… To say otherwise is flat‑out wrong. The Clippers take NBA compliance extremely seriously and welcome the league’s investigation.”
LA Clippers / Steve Ballmer statement
“We are aware of this morning’s media report regarding the LA Clippers and are commencing an investigation.”
Mike Bass, NBA spokesman
Unconfirmed
- Whether payments from Aspiration were explicitly coordinated with the Clippers or Ballmer to influence Leonard’s NBA compensation.
- The full extent of Aspiration’s internal records supporting claims about the $28 million endorsement and how payments flowed to KL2 Aspire.
- Any direct role by team executives in negotiating or approving Leonard’s endorsement terms with Aspiration.
Bottom Line
The league’s inquiry is the next formal step after public reporting linked a high‑value endorsement from a now‑bankrupt firm to a star player on a team whose owner backed that firm. The probe will aim to determine whether ordinary sponsorship activity crossed into prohibited salary‑cap circumvention; findings could carry significant sanctions and reshape how team‑related investments are reviewed.
Readers should expect the NBA to follow standard investigatory procedures: document review, interviews with involved parties and, if warranted, disciplinary recommendations. Until the league releases its findings, central allegations remain reported but not proven.