The NBA opened an investigation into allegations that the Los Angeles Clippers arranged a $28 million “no-show” endorsement deal for Kawhi Leonard. Reports claim the arrangement helped the franchise bypass salary cap rules while securing Leonard’s commitment.
Journalist Pablo Torre revealed that the money came through Aspiration Fund Adviser, LLC, a sustainability firm that later went bankrupt. From 2022 to 2025, Leonard reportedly received $7 million each year without any clear obligations. Because of this, critics argue the deal served as an under-the-table incentive to keep him in Los Angeles.
Clippers Deny Wrongdoing
The Clippers quickly rejected the claims, calling them “provably false.” Owner Steve Ballmer and team executives stressed that the organization never tried to dodge league restrictions or bridge any rules. Nevertheless, the allegations intensified debate across the NBA. Fans, reporters, and analysts now question how far teams will go financially to retain or protect their top stars.
Possible NBA Penalties
If the investigation proves violations occurred, the league could impose heavy sanctions. The NBA’s Collective Bargaining Agreement allows penalties such as $7.5 million in fines, the loss of first-round draft picks, voided contracts, or even staff suspensions. Importantly, the league punished the Minnesota Timberwolves in 2000 for a similar cap-circumvention scheme, setting a strong precedent. Beyond that, the case could also influence how the NBA monitors future endorsement deals to prevent disguised salary arrangements.
Why This Matters
Leonard stands as one of the NBA’s most influential players, so any confirmed violations would represent a major scandal or cause issues. Furthermore, the case raises questions about transparency and fairness in a league where salaries continue to rise and teams seek creative loopholes.
Ultimately, this investigation will test the NBA’s commitment to integrity. Either the league enforces strict accountability or it risks weakening trust in its financial system and competitive balance.
