PHILADELPHIA, PENNSYLVANIA - MARCH 27: Kawhi Leonard #2 of the LA Clippers reacts during the fourth quarter against the Philadelphia 76ers at the Wells Fargo Center on March 27, 2024 in Philadelphia, Pennsylvania (Photo by Tim Nwachukwu/Getty Images)
The Los Angeles Clippers are under investigating after accusations of circumventing NBA salary cap restrictions with forward Kawhi Leonard.
Speaking on the Pablo Torre Finds Out podcast, investigative journalist Pablo Torre reported that the team funded Leonard’s contract through the now-bankrupt company Aspiration. This was meant to navigate around the NBA’s salary cap, according to an unnamed Aspiration former employee.
Clippers owner Steve Ballmer made a $50 million investment into Aspiration in September 2021. Nearly two weeks later, the team secured a $300 million partnership with the company.
The Clippers released a statement regarding the accusations.
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“Neither the Clippers nor Steve Ballmer circumvented the salary cap,” the team said. “The notion that Steve invested in Aspiration in order to funnel money to Kawhi Leonard is absurd.”
The statement later said Ballmer made the initial investment as he saw the company in a good light which also protected the environment, and that the team will welcome the impending investigation.
In April 2022, Leonard completed a four-year, $28 million endorsement partnership with the company. This came during the same season where the star forward signed a four-year, $176.3 million deal with the Clippers. According to Torre, despite signing the endorsement, Leonard did not make any public appearances for Aspiration.
“Neither Steve nor the Clippers organization had any oversight of Kawhi’s independent endorsement agreement with Aspiration,” the Clippers said. “To say otherwise is flat-out wrong.”
Aspiration is currently under investigation for fraud after filing for bankruptcy in March 2025. Five months later, company co-founder Joe Sanberg pled guilty on two counts of wire fraud.
A similar case of circumventing league salary cap occurred before the 2000-01 season. Then-league commissioner David Stern handed the Minnesota Timberwolves a hefty punishment after they were found trying to circumvent the salary cap for No. 1 overall draft pick Joe Smith.
The Timberwolves were fined $3.5 million, handed a one-year suspension for owner Glen Taylor and front office executive Kevin McHale, and terminated Smith’s contracts. Stern also revoked the team’s five upcoming first-round picks.
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