An NBA investigation into whether the Los Angeles Clippers circumvented the salary cap has grown in scope, now including an inquiry into improper expenses provided to Kawhi Leonard and a potential second unreported endorsement deal.
The probe, which began 10 months ago, was initially focused on a $28 million sponsorship deal between Leonard and Aspiration, a carbon credits company that has since shuttered and filed for bankruptcy. According to multiple sources who spoke to The Athletic, the league’s hired law firm, Wachtell Lipton, is now examining if the Clippers covered expenses for Leonard without being reimbursed and if Leonard held another unreported endorsement agreement with a different company.
Trade to Toronto Raptors Paused
The expanding investigation has placed a significant offseason trade on hold. The Toronto Raptors and Los Angeles Clippers had agreed to a deal that would send Leonard back to Toronto in exchange for Brandon Ingram, Gradey Dick, two first-round draft picks, two second-round picks, and pick swaps.
The Raptors announced they paused the trade after the NBA league office informed them that Toronto would assume the risk of any potential punishment levied against Leonard if they acquired him. While a team source denied that the delay implies Toronto fears a specific penalty, the Raptors stated they will wait until the investigation is complete before finalizing the move.
The Aspiration Sponsorship Dispute
The core of the investigation centers on Leonard’s contract with Aspiration, which was reported by the “Pablo Torre Finds Out” podcast in September. The deal was valued at $28 million, but Leonard never publicly promoted the company, and the contract reportedly gave him broad discretion to deny work.
Former Aspiration employees told The Athletic they found Leonard to be a poor choice as a spokesman due to his limited social media presence and detached public profile. Despite this, evidence of an attempted marketing campaign exists; The Athletic uncovered images of a scrapped campaign that cast Leonard as a character similar to Marvel’s Groot to tie his interest in comics to the company’s tree-planting pledges. One former employee recalled being told to “stop thinking about Kawhi, this feels like a dead end.”
The investigation’s complexity is further compounded by the legal issues surrounding Aspiration. Co-founder Joe Sanberg recently pleaded guilty to two counts of wire fraud and was sentenced to 14 years in federal prison, though he has spoken with NBA investigators.
League Timeline and Team Response
NBA Commissioner Adam Silver provided an updated timeline during the NBA Board of Governors meetings in Las Vegas. Silver stated that the investigation “can be wrapped up — and needs to be wrapped up — before next season.”
The Los Angeles Clippers and owner Steve Ballmer have vehemently denied any wrongdoing. Ballmer has stated he was a victim of fraud and one of many who lost money when the company went bankrupt. The Clippers said they have fully cooperated with the league by providing tens of thousands of documents, participating in dozens of interviews, and facilitating access to staff.
David Kelly, the executive director of the National Basketball Players Association, criticized the length of the probe, stating, “It should not take this long in order for something to get wrapped up.”
Summary of Investigation Focus
| Area of Inquiry | Details |
|---|---|
| Aspiration Deal | Whether a $28 million no-work sponsorship was used to circumvent the salary cap. |
| Team Expenses | Whether the Clippers improperly covered expenses for Leonard without reimbursement. |
| Additional Endorsements | Whether Leonard had a second, previously unreported endorsement deal. |
Find more reporting in our Sports section.
Discover more from Archyworldys
Subscribe to get the latest posts sent to your email.
