Two-time Finals MVP Kawhi Leonard and Los Angeles Clippers owner Steve Ballmer suddenly find themselves in the hot seat during the offseason.
Sports journalist Pablo Torre reported in his "Pablo Torre Finds Out" podcast that the Clippers may have circumvented the NBA salary cap when they signed Leonard. The team has denied those allegations.
Here's what we know.
The allegation: Pablo Torre finds out about the 'no-show' deal with a now-bankrupt company
Torre reported in his podcast that in March 2025, firm Aspiration, filed for bankruptcy. The company featured mutual funds for environment sustainability and encouraged a "Plant Your Change" campaign to plant trees. Founder Joe Sanberg was eventually arrested on fraud chargers.
One of those bankruptcy documents that Torre obtained was a list of creditors. At the top was the LA Clippers LLC. The team is owned by Steve Ballmer.
Fourth on the list was KL2 Aspire LLC. A separate document shown by Torre revealed that Leonard was listed as a manager/member. Coincidentally, his Clippers jersey number is 2.
Torre alleged that he tried to find any mention by Leonard promoting the company, noting that rapper Drake, Kawhi's former coach Doc Rivers, as well as actor Robert Downey Jr. marketed the firm.
"This was hard to find," Torre said. "The grand total number of times that I found Kawhi Leonard ever publicly referring to Aspiration—zero times."
He reached out to former employees, seven of which agreed to an interview and allowed him to see documents. One of them included a reported compensation clause to KL2 for $28-million overall, or $7-million per year.
Exclusive: Kawhi Leonard signed a $28M endorsement deal for a "no-show job" with a fraudulent tree-planting company funded by $50M from Clippers owner Steve Ballmer, according to documents obtained by @PabloTorre.
— Pablo Torre Finds Out (@pablofindsout) September 3, 2025
"It was to circumvent the salary cap," an inside source says. pic.twitter.com/F6z5pNEkI1
Torre reported that the two-time champion was to receive the agreed amount in cash over the course of four years between 2022 and 2025 as long as he is with the Clippers.
To backstop his allegations, Torre played a recording of a supposed former finance employee, who spoke under a voice modifier.
"We have a marketing deal with Kawhi Leonard," the employee recounted someone telling them. "A $28-million organic sponsorship deal with Kawhi. And that if I have any questions about it, essentially don't, because it was to circumvent the salary cap, LOL."
Asked if Leonard did do any marketing, the employee said, "Never, not once."
“He didn't have to do anything."
The response: Clippers deny any rules were broken, 'absurd' notion
The Clippers, for their part, strongly denied that any rules were broken and emphasized that their relationship with Aspiration ended when the company defaulted on its obligations after the 2022-23 season.
"Neither Mr. Ballmer nor the Clippers circumvented the salary cap or engaged in any misconduct related to Aspiration," the Clippers said in a statement. "The notion that Steve invested in Aspiration to funnel money to Kawhi Leonard is absurd."
The statement continued: "Any contrary assertion is provably false."
“There is nothing unusual or untoward about team sponsors doing endorsement deals with players on the same team. Neither Steve nor the Clippers organization had any oversight of Kawhi's independent endorsement agreement with Aspiration. To say otherwise is flat-out wrong," the team said.
Clippers statement:
— Shams Charania (@ShamsCharania) September 4, 2025
The Clippers also said they welcome an NBA investigation, vowing to cooperate with law enforcement regarding Aspiration.
NBA investigates
With this, the NBA stated that it is investigating the matter to determine whether the endorsement deal violated salary cap regulations.
“We are aware of this morning’s media report regarding the LA Clippers and are commencing an investigation,” league spokesman Mike Bass said.
An NBA spokesman confirmed the league is aware of the Clippers report and is commencing an investigation, per ESPN.
— Yahoo Sports (@YahooSports) September 3, 2025
Pablo Torre previously reported that Kawhi Leonard reportedly signed a $28M endorsement deal for a "no-show job" with a fraudulent tree-planting company funded by… pic.twitter.com/ZgLDePwfQK
Leonard though has yet to issue a statement.
Looking back
Leonard joined the Clippers in 2019 on a three-year, $104 million deal. He signed a four-year, $176 million extension in 2021 and a three-year, $149 million extension in 2024.
The 34-year-old missed the 2021-22 season due to knee surgery and has struggled with injuries in recent seasons, averaging 21.5 points and 5.9 rebounds in just 37 games last season.
Accusations of circumventing the salary cap are rare.
The most notable case occurred in 2000, when the Minnesota Timberwolves were fined $3.5 million and lost five first-round draft picks (later reduced to three) for secretly signing an illegal agreement with Joe Smith.
