The NBA has officially launched an investigation into the Clippers and Kawhi Leonard! They are suspected of signing a secret contract to circumvent the salary cap, and if proven true, severe penalties will be imposed.

On September 4th Beijing time, ESPN reporter Shams reported that NBA spokesperson Mike Bass confirmed the league "is aware of media coverage regarding the Los Angeles Clippers and has begun an inquiry." Previous reports alleged that the Clippers and owner Ballmer paid Leonard $28 million under the guise of a "nominal job" to bypass the NBA salary cap rules.

Former ESPN writer Pablo Torre revealed that the Clippers funneled this payment to Leonard through a now-defunct company owned by Ballmer.

Torre cited numerous internal documents from Aspire Corporation. On September 14, 2021, Ballmer personally invested $50 million into the company via his personal LLC, becoming one of its financiers.

On September 27 of the same year, the Clippers announced a $300 million partnership deal with Aspire Corporation, then operational but now bankrupt, which included sponsorship placements at the Clippers’ new arena and on team jerseys.

Torre stated that in April 2022, Leonard signed a four-year, $28 million endorsement contract with Aspire Corporation through his personal LLC, KL2 Aspire. This was nine months after Leonard had signed a four-year, $176.3 million extension with the Clippers, which at the time complied with the NBA’s maximum salary rules under the collective bargaining agreement.

According to a document obtained by Torre, if Leonard left the Clippers, the endorsement deal between Aspire Corporation and KL2 Aspire would automatically terminate. Torre also noted that Leonard could continue receiving endorsement payments even if he refused to participate in any promotional activities requested by Aspire Corporation.

An anonymous former employee of Aspire Corporation told Torre that the payment to Leonard was “intended solely to circumvent the salary cap.”

In response, the Clippers stated: “Mr. Ballmer and the Clippers have never engaged in salary cap circumvention or any wrongdoing in their collaboration with Aspire Corporation. Any contrary claims are false and can be disproven. As early as the 2022-23 season, the Clippers terminated their partnership with Aspire due to the company’s breach of contract. Before any government investigation began, neither the Clippers nor Mr. Ballmer were aware of any misconduct by Aspire or its co-founder. The team and Mr. Ballmer are prepared to fully cooperate with any law enforcement inquiries.”

Aspire Corporation filed for bankruptcy in March 2025. Currently, the company is under federal investigation for fraud. Its 46-year-old co-founder Joe Samberg admitted to two counts of telecommunications fraud in late August, involving over $248 million and allegations of defrauding investors and creditors.

According to the NBA’s 2023 collective bargaining agreement anti-circumvention clause, teams found guilty of salary cap evasion face penalties including fines up to $7.5 million, loss of draft picks, nullification of player contracts, and suspensions of involved personnel for up to one year.

Historically, the NBA has dealt with similar violations: in 2000, the Minnesota Timberwolves were exposed for signing an illegal secret agreement with player Joe Smith. The Timberwolves allegedly promised Smith a multi-million dollar future contract in exchange for signing a lower-paying short-term deal to join the team.

As a result, the NBA handed down severe penalties to the Timberwolves: stripping five first-round draft picks, fining $3.5 million, banning head coach Kevin McHale and owner Glen Taylor from coaching or managing for one season, and voiding Smith’s contract.

The Clippers have previously been penalized for violations: in May 2019, then-head coach Doc Rivers publicly compared Leonard, then with the Raptors, to Michael Jordan. This violated league rules prohibiting teams from privately contacting other teams’ active players or making public statements that might interfere with player trades or signings, resulting in a $50,000 fine for the Clippers.

During the summer of 2019, when Leonard was a free agent, reports indicated that Leonard and his team, led by his uncle Dennis Robertson, made improper demands to interested teams. These demands reportedly included partial team ownership, private jet use, housing, and guaranteed off-court endorsement income. The NBA investigated the Clippers regarding this matter.

In November 2019, Rivers was fined another $50,000 by the NBA after making comments inconsistent with Leonard’s health status, causing the Clippers to be penalized again.

In December 2020, a man named Johnny Wilkes filed a lawsuit claiming he helped the Clippers sign Leonard and was promised $2.5 million by Clippers advisor Jerry West, but the payment was never made. The NBA investigated the allegations related to Leonard’s signing. The Clippers denied the claims, the lawsuit was dismissed, and no penalties were imposed on the team.

The 34-year-old Leonard signed a three-year, $153 million extension with the Clippers in January 2024, which will keep him with the team through the 2026-27 season.

Additionally, the Clippers are currently facing another 2024 lawsuit: former strength and conditioning coach Randy Shelton sued the Clippers and basketball operations president Lawrence Frank, alleging wrongful termination partly due to his previous concerns about Leonard’s health management and injury treatment.