The NBA's investigation into Kawhi Leonard and the Los Angeles Clippers had produced the harshest punishment in league history. After nearly a year of work, the league concluded that the Clippers circumvented salary-cap rules by helping arrange outside endorsements for Kawhi through team-friendly sponsors.
The investigation, led by Wachtell, Lipton, Rosen & Katz, found what the NBA described as a wide pattern of misconduct. The fallout led to owner Steve Ballmer being suspended from all league and team activities for one year and fined $30 million.
The franchise would also have to forfeit five first-round picks from the 2029 through 2033 NBA Drafts. Lawrence Frank received a six-month suspension, while business president Gillian Zucker was also banned for one year.
Kawhi, whom the Clippers agreed to trade to the Toronto Raptors earlier this summer, was fined $700,000, while his uncle and business manager, Dennis Robertson, received a five-year ban from conducting business with NBA teams or any affiliates. Still, ESPN's Brian Windhorst believes there is one part of the Clippers explanation in this whole conundrum that made sense to him.
Speaking on his "The Hoops Collective" podcast, the 48-year-old analyst explained that he did not see the Clippers' Aspiration deal as Ballmer simply deciding to find a way around the salary to keep the two-time NBA champion. But Windy believed there was another motive behind the Aspiration deal, one involving the company's co-founder, Joseph Sanberg.
"The one defence that I heard from the Clippers that made sense to me, because I'm all about what makes sense, was that this guy [Sanberg] was running a Ponzi scheme selling freaking carbon credits, whatever that means, and that he needed to keep Ballmer's investment going," Windhorst said . "So, he paid off Kawhi Leonard to keep Ballmer's investment going. It was a Ponzi scheme. That was actually a defense that I could understand."
Aspiration, a green-tech startup built around carbon credits, was a major part of the controversy. Kawhi had a $28 million no-show endorsement agreement with the company, while Ballmer had invested tens of millions of dollars into the business.
Aspiration promoted carbon offsets as a way for individuals and businesses to reduce the impact of their emissions. Ballmer also brought carbon credits and trees through the company to help offset the carbon footprint of the Clippers, Intuit Dome, Kia Forum, and their fans and patrons.
The company eventually fell apart after federal authorities accused co-founder Sanberg of running a Ponzi scheme. Investigators found fake financial records, fabricated revenue, and misleading bank statements had been used to keep the struggling business going.
Just days before Sanberg was set to be sentenced, Ballmer addressed his involvement with Aspiration and clearly admitted that he had been duped by the company's founder. He explained how he invested in Aspiration because of its focus on environmental sustainability, a cause that mattered deeply to him and his family.
"I was duped and feel silly about that. Everyone who believed in Aspiration, including employees, customers and investors, was also duped. Everyone is still tallying the losses." He wrote on X , sharing his letter sent to Judge Wilson.
Ballmer was also named in a lawsuit brought by 11 former Aspiration investors, who claimed they were defrauded of millions by Sanberg and others at the company. The lawsuit was initially filed in July 2025, with Ballmer added as a defendant in November.
The investors alleged that Ballmer participated in the fraud by funneling money to Kawhi. But Ballmer's attorney pushed back on that position in the letter to the judge, arguing that any sentence for Sanberg should also take into account the reputational damage Ballmer has suffered.
This story was originally published by Basketball Network on Sep 5, 2026, where it first appeared in the Off The Court section. Add Basketball Network as a Preferred Source by clicking here.
