Clippers Reportedly Accused of Circumventing NBA’s Salary Cap Paying Millions to Kawhi Leonard
NBA players are making more money than ever before; with former Mavs owner, Mark Cuban; believing we’re not too far off from the first billion dollar contract. However, this week it wasn’t just money amounts that caught the attention of the basketball world; but HOW a player may have been paid. The LA Clippers reportedly are accused of circumventing the NBA’s salary cap by paying $28 million to Kawhi Leonard for a “no-show job.”
This is no small accusation. It could have major repercussions. Therefore, the Los Angeles franchise and its owner immediately wanted to set matters straight.
On Wednesday morning, journalist and podcaster, Pablo Torre reported that the Clippers paid Leonard through a now-bankrupt company owned by Clippers owner Steve Ballmer. Torre cited a large array of internal documents supposedly from the company Aspiration, which Ballmer partially funded with a $50 million investment through his personal LLC on Sept. 14, 2021.
Aspiration filed for bankruptcy just earlier this year. Around March 2025 to be more exact. Nonetheless, ESPN’s Baxter Holmes reports,
“[Back on] Sept. 27, 2021, the Clippers announced a $300 million partnership with the now-bankrupt Aspiration, including sponsorship in the team’s new arena and on the team’s jersey patch.
According to Torre, Leonard agreed to a four-year, $28 million endorsement deal in April 2022 through his LLC, KL2 Aspire. The endorsement deal came nine months after Leonard signed a four-year, $176.3 million contract to remain with the Clippers — the maximum allowed at the time under the NBA’s collective bargaining agreement.
A clause in one of the documents purportedly obtained by Torre states that the deal between Aspiration and KL2 Aspire would be voided if Leonard left the Clippers. According to Torre, Leonard also could “decline to proceed with any action desired” by Aspiration and continue to get paid.
An unnamed employee who purportedly worked for Aspiration told Torre that the payment to Leonard “was to circumvent the salary cap.”
Clippers Reportedly Accused of Circumventing NBA’s Salary Cap Paying Millions to Kawhi Leonard
Steve Ballmer and the Clippers released the following statement:
“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. Steve invested because Aspiration’s cofounders presented themselves as committed to doing right by their customers while protecting the environment.
After a long campaign of market manipulation, which defrauded not only Steve but numerous other investors and sports teams, Aspiration filed for bankruptcy. Its co-founder, Joseph Sanberg, recently pleaded guilty to a $243 million fraud. Neither Steve nor the Clippers had knowledge of any improper activity by Aspiration or its co-founder until after the government initiated its investigation. Aspiration was a team sponsor for the 2021- 2022 and 2022- 2023 seasons before defaulting on its contract.
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.
The Clippers take NBA compliance extremely seriously, fully respect the league’s rules, and welcome its investigation related to Aspiration.
The Clippers will also continue to cooperate with law enforcement in its investigation into Aspiration’s blatantly fraudulent activity.”
As of right now, what the Clippers and Ballmer are being accused of; is just that… accusations. However, the NBA is going to look into this matter just to be sure. NBA spokesman Mike Bass mentions: “We are aware of this morning’s media report regarding the LA Clippers and are commencing an investigation.” We will keep you updated.
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