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Kawhi Leonard, Clippers scandal explained: What we know about NBA investigation
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- Kawhi Leonard, Clippers scandal explained: What we know about NBA investigation
NBA training camps are set to open later this month, but the bombshell news around the league centers around the Los Angeles Clippers and Kawhi Leonard .
The league is investigating allegations that the Clippers facilitated a $28 million "no-show" endorsement deal for Leonard with a now-bankrupt sustainability company called Aspiration, allegedly in an effort to circumvent the NBA salary cap.
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The Clippers have adamantly denied the allegations.
If the NBA, however, finds the franchise to have violated the provisions against circumvention laid out in the Collective Bargaining Agreement, the penalties could be massive.
Here's everything you need to know about the allegations surrounding Kawhi Leonard and the Los Angeles Clippers :
Kawhi Leonard news: NBA to investigate Clippers alleged $28 million payment to Kawhi Leonard for 'no-show job'
Have the Clippers responded to the allegations?
Yes. The team issued a pair of statements Wednesday, September 3, in response to the matter. The second statement was lengthier and called the notion that Ballmer used Aspiration to funnel money to Leonard "absurd." The statement also attacked Aspiration for "fraudulent activity," alleging market manipulation that "defrauded not only Steve but numerous other investors and sports teams" out of their investments.
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The team also distanced itself from Leonard's relationship with Aspiration.
"There is nothing unusual or untoward about team sponsors doing endorsement deals with players on the same team," the second statement reads. "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 said they would cooperate with the NBA investigation and added that it would cooperate with law enforcement "in its investigation into Aspiration's blatantly fraudulent activity."
What are the allegations Kawhi Leonard and the Clippers are facing?
The Los Angeles Clippers reportedly facilitated a $28 million "no-show" endorsement deal for star Kawhi Leonard with a now-bankrupt sustainability company, allegedly in an effort to circumvent the NBA salary cap.
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Sports reporter Pablo Torre of "Pablo Torre Finds Out" hosted an episode of his show that published Wednesday, September 3 in which he outlined the allegations. At the center of it is the now-bankrupt "green" financial services company called Aspiration.
Torre uncovered thousands of pages of legal documents, including a contract signed by Leonard for $28 million over a four-year term to market and endorse Aspiration, which previously received a significant investment from Clippers owner Steve Ballmer.
In the contract, a clause states that KL2 Aspire LLC, a company run by Leonard, could "decline to proceed with any action desired by the Company," which set up a structure for Leonard to potentially receive payments without performing any work. Another clause states that Leonard would receive payments only if he continued to be a player on the Clippers.
Torre also aired an interview with a former high-ranking executive who worked in the finance department with Aspiration who said the arrangement was done "to circumvent the salary cap."
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Aspiration had struck an agreement to be a team sponsor of the Clippers from 2021-23. Aspiration filed for bankruptcy in March 2025, and the company is facing a federal probe for fraud. On Thursday, August 21, co-founder Joseph Sanberg was charged and pleaded guilty to two counts of wire fraud, the Department of Justice said. Per the DOJ, Sanberg defrauded investors of more than $248 million.
Did Kawhi Leonard perform any marketing or endorsement work for Aspiration?
There isn't much evidence to show that he did. Torre said in his report that he could not uncover any example. When Torre asked the high-ranking former Aspiration exec if they ever saw any proof of Leonard marketing or endorsing Aspiration in any way, the person responded: "Never, not once."
The only example that came to light on Wednesday was a social media post from Thursday, June 29, 2023, in which the Clippers honored Leonard for his birthday, with a branded message from Aspiration.
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"For every comment/retweet, @Aspiration will plant one tree for Kawhi's birthday!" the message reads.
The post also contained an image that featured Aspiration's logo at the top.
The post was likely the result of a sponsorship deal the team had struck with Aspiration.
What are potential penalties the Clippers, Steve Ballmer and Kawhi Leonard could face?
Clippers Kawhi Leonard
If the NBA finds the Clippers guilty of wrongdoing in an attempt to circumvent the salary cap, the penalties could be steep.
According to Article XIII of the Collective Bargaining Agreement, the league could "impose a fine of up to" $4.5 million for a first-time violation. A second violation could trigger a $5.5 million fine and forfeiture of a first-round draft pick.
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Another section under the same article prohibits unauthorized agreements; a violation of that section could trigger a fine of up to $7.5 million, forfeiture of draft picks, the voiding of player contracts, a fine of up to $350,000 to the player, a prohibition of the player signing an additional contract with the violating team and a one-year suspension of "any Team personnel found to have willfully engaged in such violation."
The NBA investigation will determine whether any potential discipline would fall under the second section.
It's worth noting that the Clippers have already been found to have engaged in impropriety with third-party endorsements under Ballmer. Back in August 2015 — a year after Ballmer's purchase of the team was finalized — the NBA fined Los Angeles $250,000 for "violating NBA rules prohibiting teams from offering players unauthorized business or investment opportunities" in their pursuit of then-free agent center DeAndre Jordan .
A second violation would almost certainly trigger a massive penalty.
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What has the NBA said about the matter?
The NBA announced on Wednesday, September 3, that it would open an investigation into the matter, but declined to comment beyond that.
"We are aware of this morning's media report regarding the LA Clippers and are commencing an investigation," NBA spokesman Mike Bass said Wednesday in a statement emailed to USA TODAY Sports.
Have other NBA figures commented on the matter?
Former Dallas Mavericks majority owner and current minority owner Mark Cuban posted a message on social media , defending Ballmer.
"I'm on Team Ballmer," Cuban wrote. "First Steve isn't that dumb. If he did try to feed KL money, knowing what was at stake for him personally, and his team, do you think he would let the company go bankrupt? Knowing all creditors would be visible to the world? They got scammed by Aspiration, along with many others. Crimes for which they pleaded guilty last week."
Cuban went on to say that Aspiration used the $300 million sponsorship deal with the Clippers to boost their own valuation, pinning the blame on Aspiration.
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"It actually makes perfect sense that if they stole money from investors and want the Clippers to succeed, why not give stolen money to help keep their best player?" Cuban wrote.
This article originally appeared on USA TODAY: Kawhi Leonard situation explained as NBA investigates Clippers
