Lead: On Sept. 3, 2025, former employees of San Francisco startup Aspiration told a podcast that Kawhi Leonard received a four‑year, $28 million endorsement in 2022 that functioned as a no‑work payment tied to the LA Clippers and owner Steve Ballmer — an arrangement alleged to have been used to avoid counting that money against the NBA salary cap and now drawing scrutiny after Aspiration’s collapse.
Key Takeaways
- Seven former Aspiration staffers allege Leonard’s $28 million endorsement was a “no‑show” arrangement intended to sidestep salary‑cap rules.
- Clippers owner Steve Ballmer reportedly invested $50 million in Aspiration in Sept. 2021; the team later announced a 23‑year, $300 million sponsorship with the company.
- Aspiration filed for bankruptcy in March 2025 after co‑founder Joe Sanberg was charged; Sanberg later pleaded guilty to defrauding investors of $248 million.
- Bankruptcy filings list the Clippers as owed about $30 million, Forum Entertainment $11 million, and Leonard’s KL2 Aspire $7 million.
- The Clippers deny any misconduct or salary‑cap circumvention and say they will cooperate with authorities.
Verified Facts
According to accounts shared on the “Pablo Torre Finds Out” podcast released Sept. 3, 2025, former Aspiration employees described a four‑year, $28 million agreement that became effective in April 2022 between the firm and a company tied to Leonard. Those employees characterized the deal as requiring little or no promotional work by the player.
Public records and reporting show Ballmer agreed to put $50 million into Aspiration in September 2021, shortly after Leonard signed a team‑friendly extension with the Clippers. Weeks later the Clippers named Aspiration a team sponsor under a reported 23‑year, $300 million deal.
Aspiration entered bankruptcy protection in March 2025 after charges against its co‑founder. Court documents reviewed in reporting list major creditors connected to Ballmer, the Clippers and Leonard’s LLC. Separately, prosecutors say Aspiration’s co‑founder defrauded investors of about $248 million; he has pleaded guilty.
Leonard’s contract history with the Clippers is a key context: he signed a three‑year, $103 million deal in 2019, a reported four‑year, $176 million extension in 2021, and later a three‑year, $153 million contract in January 2024. Those team‑friendly deals have been noted previously as giving the franchise cap flexibility.
Context & Impact
If the league determines a team and player conspired to hide compensation to evade the salary cap, the NBA rules allow penalties including fines up to $7.5 million, forfeiture of draft picks, voiding of player contracts or extensions, player fines up to $350,000 and personnel suspensions. Past precedent includes the 2000 Joe Smith case and fines tied to other recruitment tactics.
The potential ramifications reach beyond fines. A finding of cap circumvention could lead to voided contracts or reversed transactions, and would be a major integrity issue for the Clippers as Ballmer prepares to host major events — the 2026 All‑Star Game and the 2028 Olympic basketball tournament site.
- Team building: Voided contracts or lost draft capital would affect roster planning and free‑agency strategy.
- Ownership scrutiny: Any proven involvement by an owner or related entities would invite league penalties and reputational fallout.
- League precedent: The NBA may pursue strict sanctions to deter similar arrangements.
“Neither Mr. Ballmer nor the Clippers circumvented the salary‑cap or engaged in any misconduct related to Aspiration. Any contrary assertion is provably false,” the Clippers said in a statement, adding the team ended its relationship with Aspiration when the firm defaulted and that it was unaware of improper activity until authorities opened an investigation.
LA Clippers statement to The Athletic
Unconfirmed
- Whether Steve Ballmer knew of the specific terms of the Aspiration‑Leonard agreement before or after his investment.
- Whether Leonard or his representatives performed any promotional work for Aspiration beyond what has been publicly documented.
- Any formal NBA investigation opened specifically into the Aspiration payments beyond prior league reviews related to Leonard’s recruitment.
Bottom Line
The allegations, if substantiated, raise serious questions about the use of third‑party deals to influence team salary flexibility. The Clippers deny wrongdoing and Aspiration’s bankruptcy and its founder’s guilty plea complicate the picture. The NBA’s response — whether investigatory, disciplinary or both — will determine immediate consequences for the franchise and for Leonard.