NBA launches probe into Kawhi Leonard’s Clippers deal amid salary cap concerns tied to failed Aspiration endorsement agreement.
League Launches Formal Probe
The NBA confirmed Wednesday it is investigating whether the Los Angeles Clippers violated salary cap rules through a $28 million endorsement agreement involving star forward Kawhi Leonard. The probe follows a report by journalist Pablo Torre linking Leonard, the Clippers, and the now-bankrupt California firm Aspiration Fund Adviser, LLC.
Focus of the Investigation
At the centre of the inquiry is an endorsement deal between Aspiration and Leonard’s company, KL2 Aspire LLC. Court filings from Aspiration’s bankruptcy earlier this year revealed debts owed to both the Clippers and Leonard’s firm. The league will examine whether those financial ties indirectly allowed Los Angeles to provide Leonard with compensation outside of his four-year, $176 million contract signed in 2021.
Clippers Respond to Allegations
The Clippers have strongly denied any wrongdoing. Team owner Steve Ballmer, who personally invested $50 million in Aspiration, insisted neither he nor the organization circumvented the cap. “Any contrary assertion is provably false,” the team said in a statement, noting their partnership with Aspiration ended during the 2022–23 season when the company defaulted on its obligations.
The Role of Aspiration and Its Collapse
Aspiration, a sustainability-focused investment company, once announced a $300 million partnership with the Clippers. However, the company has since collapsed under fraud allegations. Co-founder Joseph Sanberg pleaded guilty last month to federal wire fraud charges, admitting to misleading investors and lenders out of nearly $248 million.
Leonard’s Involvement Questioned
California filings list Leonard as the manager of KL2 Aspire LLC, a company owed $7 million by Aspiration at the time of its bankruptcy. Torre’s reporting suggests Leonard’s endorsement deal promised annual payments of $7 million over four years. Yet, no public record shows Leonard promoting the brand, raising further questions about the nature of the agreement.
Potential Consequences for the Clippers
If the NBA concludes the Clippers circumvented the salary cap, the franchise could face severe penalties. Possible sanctions include fines of up to $7.5 million, voiding of contracts, or the loss of future draft picks. The league has previously investigated Leonard’s free agency negotiations but has not handed down major penalties.
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