The NBA has launched an investigation into the Los Angeles Clippers over allegations that the team circumvented the league’s salary cap by orchestrating a deceptive $28 million endorsement deal for star forward Kawhi Leonard through a now-bankrupt company. This follows a detailed report by journalist Pablo Torre, who uncovered internal documents suggesting the deal was designed to avoid salary restrictions, prompting swift league action.
The investigation was initiated after Torre revealed on his podcast ‘Pablo Torre Finds Out’ that he had accessed over 3,000 pages of internal documents from Aspiration Partners, Inc., a financial technology company. These documents allegedly outline a scheme where Leonard was paid for a ‘no-show job’ intended to bypass NBA rules, with the deal structured through his LLC, KL2 Aspire. Torre cited anonymous sources, including a former Aspiration employee who claimed the arrangement was explicitly meant to ‘circumvent the salary cap’ and involved no actual marketing work from Leonard.
Aspiration had significant ties to the Clippers organization, as team owner Steve Ballmer invested $50 million in the company in 2021, and the Clippers announced a $300 million partnership with Aspiration later that year, including sponsorship deals for the team’s arena and jerseys. The endorsement agreement with Leonard was signed in April 2022, nine months after he inked a maximum four-year, $176.3 million contract with the Clippers, raising suspicions about the timing and intent behind the additional payments.
Key details from the documents include clauses that would void the endorsement deal if Leonard left the Clippers, and provisions allowing him to decline any marketing activities while still receiving full payment. This structure suggests an effort to provide extra compensation outside the salary cap, which is prohibited under NBA rules designed to maintain competitive balance among teams.
The Clippers have vehemently denied any wrongdoing, issuing statements asserting that neither Ballmer nor the organization engaged in misconduct or was aware of improper activities by Aspiration. They highlighted that the team ended its relationship with Aspiration during the 2022-23 season due to the company’s default on obligations, and only learned of potential fraud after government investigations began. The team has pledged full cooperation with the NBA’s inquiry.
Aspiration’s bankruptcy in March 2025 and the recent guilty plea of its co-founder to defrauding investors of over $248 million add layers of complexity to the case. The federal investigation into Aspiration’s practices may influence the NBA’s findings, as the league examines whether the Clippers were complicit or merely victims of the company’s alleged schemes.
Under the NBA’s collective bargaining agreement, teams found guilty of cap circumvention face severe penalties, including fines up to $7.5 million, forfeiture of draft picks, voiding of player contracts, and suspensions for involved personnel. Historical precedents, such as the Minnesota Timberwolves’ punishment for a secret deal with Joe Smith in 2000, demonstrate the league’s willingness to impose harsh sanctions to uphold rules integrity.
The outcome of this investigation could have far-reaching implications for the Clippers, potentially affecting their roster construction, financial stability, and reputation. It also tests the NBA’s enforcement mechanisms amid growing scrutiny of endorsement deals and team-owner relationships. As the probe unfolds, it will be closely monitored by fans, analysts, and other teams for its impact on league governance and competitive fairness.