The Los Angeles Clippers and owner Steve Ballmer reportedly may have circumvented the NBA salary cap with the Kawhi Leonard contract, potentially paying him $28 million under the table to play for the franchise.
On the latest episode of Pablo Torre Finds Out , the reporter and podcaster for The Athletic revealed that he found documents for a signed $28 million endorsement deal for a "no-show job" with a fraudulent tree-planting company that was funded by Ballmer.
"I was told, 'These are the major players and major contracts you really need to be aware of… Oh, and by the way, we also have a marketing deal with Kawhi Leonard. A $28 million organic marketing sponsorship… If I had any questions about it, essentially don't, because it was to circumvent the salary cap.'"
Kawhi Leonard contract ( Spotrac ):$50 million cap hit (2025-26), $50.3 million cap hit (2026-27), NBA free agent in the summer of 2027
Torre's lengthy investigation found that Leonard was paid by the "allegedly fraudulent" tree-planting company, Aspiration, which the Clippers' owner has funded.
The company, Aspiration, filed for Chapter 11 bankruptcy. In its filing, Form 204 listed the largest creditors who still had the biggest unsecured claims. Ballmer's Clippers ($30.047 million) had the largest unsecured claim, and KL2 Aspire LLC, which is owned by Leonard, was owed $7 million.
Torre spoke to seven former Aspiration employees, with that process leading to the release of more documents. In one of them, there's an endorsement agreement showing the connection between KL2 Aspire LLC and Aspiration Partners, Inc.
The endorsement contract stated that Aspiration "desires that KL2 cause Leonard to provide the services to promote and market" the company. In exchange, per the documents, Leonard's KL2 Aspire LLC would receive $38 million in cash "during the terms of the agreement," paying $7 million for each year of the deal.
"I was told, 'These are the major players and major contracts you really need to be aware of… Oh, and by the way, we also have a marketing deal with Kawhi Leonard. A $28 million organic marketing sponsorship… If I had any questions about it, essentially don't, because it was to circumvent the salary cap."
However, in speaking to former Aspiration employees, they said it was indicated to them that this was essentially a "no-show job" for Leonard that was done to circumvent the NBA salary cap. A former employee in the finance department, who spoke to Torre, said that Leonard's deal with Aspiration "completely eclipsed" every other celebrity endorsement deal combined.
"The single largest sponsorship deal that Aspiration ever made. It completely eclipsed every other agreement. Compeltely eclipsed it. Every other celebrity endorsement combined, would not have met, even a quarter of Kawhi Leonard's endosement.
The employee said he never saw any proof of Leonard marketing or endorsing Aspiration in any way. In documents obtained by Torre, Section 3.2 iv (Obligations of KL2) stated that "KL2 may decline to proceed with any action desired by the Company if Leonard believes that such proposed actions are not consistent with his beliefs." As a result, he could still be paid the endorsement money despite not meeting Key Performance Indicators (KPI).
While Leonard's camp didn't respond to a request for comment from Torre, the Clippers' organization denied the allegations of circumventing the NBA salary cap.
"Neither Mr. Ballmer nor the Clippers circumvented the salary cap or engaged in any misconduct related to Aspiration. Any contrary assertion is provably false."
Leonard originally signed with the Clippers in the summer of 2019, choosing them over the Los Angeles Lakers . A few months later, Sam Amick of The Athletic reported that Leonard's uncle/advisor Dennis Robertson, allegedly asked team officials for improper benefits, including guaranteed sponsorship money, a private plane and part ownership of the NBA franchise he signed with.
"Sources say the league was told that Robertson asked team officials for part ownership of the team, a private plane that would be available at all times, a house and — last but certainly not least — a guaranteed amount of off-court endorsement money that they could expect if Leonard played for their team."
At the time, the league found no evidence that the Clippers agreed to provide Leonard with any improper benefits that circumvented the NBA salary cap. However, NBA commissioner Adam Silver stated that circumventing the cap was a "cardinal sin" and any team found to have done it would face significant penalties from the league.
Furthermore, Silver told The Athletic that if any new information emerged that might have evidence of improper benefits, the NBA would reopen its investigation and pursue charges.
Credit: Ron Chenoy-Imagn Images
In the NBA Collective Bargaining Agreement , Article XIII states that any circumvention of the NBA salary cap is prohibited. The penalties are also significant, as the league has already demonstrated.
If it is found that a team had a sponsor, business partner, or any third party "pay or agree to pay compensation for basketball services (even if such compensation is ostensibly designated as being for non-basketball services) to a player under Contract to the Team" or if there was an unauthorized agreement (Section 2) that provided compensation for a player or anyone with acting authority on behalf of the player or if there is an "investment or business opportunity" made available for the benefit of a player or someone on their behalf.
As stated in the latest NBA CBA, circumventing the salary cap or agreeing to an unauthorized financial agreement with a player can result in a multi-million-dollar fine for the team, voiding of the player's contract, forfeiture of draft picks and a one-year suspension for any team personnel found to have "willfully engaged" in the violation.
The Minnesota Timberwolves signed forward Joe Smith to a one-year, $2.2 million contract in 1999. As part of the deal, there was a reported promise to pay Smith $86 million over the next seven years, a violation of league rules as it circumvented the NBA salary cap.
Kawhi Leonard career earnings:$325.772 million
In October 2000 , the NBA fined the Timberwolves $3.5 million and stripped them of first-round picks for the next five years. In addition, Smith's contract with Minnesota was voided and he immediately became a free agent. Smith then signed with the Detroit Pistons in November 2000 . The Timberwolves were ultimately stripped of first-round picks in 2001, '02 and '04, with the NBA later returning Minnesota's first-round picks in '03 and '05.
"'We have to take this stuff extremely seriously to make sure there is a competitive playing field."
The NBA also suspended Timberwolves' owner Glen Taylor while Kevin McHale, Minnesota's vice president of basketball operations, took an unpaid leave of absence until Aug. 1, 2001 . Taylor's suspension lasted into October 2001. In exchange for both stepping away from the team, the NBA returned the team its 2003 first-round pick.
Read More: Best NBA Players of All Time
Steve Ballmer net worth ( Forbes ):$152.7 billion
If the NBA investigates the report made by "Pablo Torre Finds Out" and determines that the Clippers violated the CBA and circumvented the salary cap, the penalties could prove historic.
"Upon a finding of a violation of Section 2 above by the System Arbitrator, but only following the conclusion of any appeal to the Appeals Panel, the Commissioner shall be authorized to: impose a fine of up to $7,500,000 on any Team found to have committed such violation (fifty percent (50%) of which shall be payable to the NBA, and fifty percent (50%) of which shall be payable to the NBPA-Selected Charitable Organization); direct the forfeiture of draft picks; when both the player (or any person or entity acting with authority on behalf of such player) and the Team (or Team Affiliate) are found to have committed such violation, (A) void any Player Contract, or any Renegotiation, Extension, or amendment of a Player Contract, between such player and such Team."
The league could immediately void Leonard's contract, making him an NBA free agent. In addition, Ballmer could be suspended along with any Clippers' officials who the league determines were involved in signing Leonard to a deal that circumvented the NBA salary cap.
As for the potential fine the Clippers could face, the maximum penalty is a $7.5 million fine (first-time offense), with 50 percent of that payable to the NBA and the other half "payable to the NBPA-Selected Charitable Organization."
There would also be draft-pick penalties. Many of the Clippers' future draft picks have already been traded, with the team currently only outright owning its first-round picks in 2030-35. Los Angeles' first-round pick in 2027 is owned by the Oklahoma City Thunder (swap rights) and the Philadelphia 76ers have rights to the Clippers' 2028 first-round pick (outright) and the Clippers' 2029 first-round pick (swap rights).
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