The Los Angeles Clippers have issued a firm denial after reports raised questions about Kawhi Leonard’s 2019 free agency and a possible breach of salary cap rules.
The NBA confirmed it has opened an investigation following documents obtained by journalist Pablo Torre, which revealed Leonard signed a $28 million endorsement deal with Aspiration, a now-bankrupt tree-planting company. The firm was reportedly funded with $50 million from team owner Steve Ballmer.
League spokesman Mike Bass told ESPN the organization is “aware of this morning’s media report regarding the LA Clippers and are commencing an investigation.”
In response, the Clippers released a detailed 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,” the team said.
The franchise emphasized that Ballmer invested in Aspiration based on its environmental mission and was also a victim of fraud. Co-founder Joseph Sanberg recently pleaded guilty to a $243 million scheme. The Clippers noted that Aspiration later became a team sponsor before defaulting on its contract.
“There is nothing unusual or untoward about team sponsors doing endorsement deals with players on the same team,” the statement continued. “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 allegations suggest Leonard’s contract with Aspiration functioned as a “no-show job,” with payments tied to his tenure in Los Angeles. Such arrangements could constitute salary cap circumvention under the NBA’s collective bargaining agreement.
The Clippers maintained they welcome the league’s review and “take NBA compliance extremely seriously.” The organization added it would cooperate with law enforcement in the ongoing probe into Aspiration’s fraudulent activities.
Leonard, who joined the Clippers after leading the Toronto Raptors to the 2019 championship, has since signed multiple extensions. His most recent deal, agreed in January 2024, is worth $152.4 million over three years.
The case underscores the magnitude of the Clippers’ 2019 decisions. To pair Leonard with Paul George, the team sent Shai Gilgeous-Alexander and a historic package of draft picks to Oklahoma City. Gilgeous-Alexander has since won MVP and Finals MVP with the Thunder, heightening the stakes around Los Angeles’ pursuit of Leonard.
