A new, explosive report has ignited concerns across the NBA, suggesting a high-profile scheme involving Los Angeles Clippers star Kawhi Leonard and team owner Steve Ballmer. Allegations point to a secret $28 million “no-work” endorsement deal. This arrangement, with a now-bankrupt environmental company, allegedly helped Leonard receive extra compensation. The goal? To bypass the NBA’s strict salary cap rules. This development could carry severe repercussions for the franchise and its star player.
The detailed accusations stem from former employees of Aspiration. This San Francisco-based environmental startup was partly funded by a significant $50 million investment from Ballmer himself. Seven anonymous ex-employees, speaking on the “Pablo Torre Finds Out” podcast, claim Leonard’s four-year, $28 million deal was a sham. Initiated in 2022, it was purportedly designed to “circumvent the (NBA) salary cap.” One former financial official from Aspiration explicitly recounted internal discussions. They stated the deal was openly acknowledged as a salary cap circumvention, often with “lots of LOLs.”
Unpacking the Allegations: A “No-Show” Contract
The core of the controversy centers on the nature of Leonard’s agreement with Aspiration. Critics describe it as a “no-show job.” Evidence suggests a lack of promotional activity from the NBA superstar. Despite the substantial payment, no public evidence of Leonard endorsing Aspiration has surfaced. This includes social media posts, photographs, or official appearances. In contrast, other high-profile figures endorsing Aspiration, like Drake and Robert Downey Jr., actively promoted the brand. This stark difference fuels suspicions about the deal’s legitimacy.
Crucially, the endorsement contract, reviewed by the Torre podcast, contained specific language. It granted Leonard “the exclusive right to control and approve all content and distribution.” Additionally, it allowed Aspiration to terminate the contract if Leonard was “no longer an employee of the [Clippers] for any reason.” This clause directly links the endorsement to Leonard’s continued tenure with the team. A former Aspiration finance official dramatically stated on the podcast, “(Leonard) didn’t have to do anything.” They added, “Uncle Dennis demanded payment. It was priority one.” Dennis Robertson, Leonard’s uncle and chief business partner, is listed as the “designated representative” on the Aspiration contract. This highlights his central role in negotiating such agreements.
The Clippers’ Defense and Prior Incidents
The Los Angeles Clippers have strongly denied any wrongdoing. Their communications team issued a statement to The Athletic. It asserts, “Neither Mr. Ballmer nor the Clippers circumvented the salary-cap or engaged in any misconduct related to Aspiration.” The team claims its relationship with Aspiration ended during the 2022-23 season. This occurred when the company defaulted on its obligations. They further state that neither Ballmer nor the Clippers knew of any improper activity by Aspiration. This awareness only came after a government investigation began. The Clippers pledged to assist law enforcement fully.
This isn’t the first time the Clippers or Leonard have faced scrutiny over off-court payments. In 2019, the NBA launched a formal investigation. It addressed complaints that Dennis Robertson had requested impermissible benefits. These demands allegedly came from multiple teams during Leonard’s free agency that summer. Sources indicated Robertson sought part ownership of a team. He also reportedly asked for a private plane, a house, and guaranteed off-court endorsement money. While the 2019 investigation found no evidence of the Clippers granting these specific lavish requests, the league did not close the door on the matter. Commissioner Adam Silver stated the investigation could reopen if new evidence emerged.
Another notable instance occurred in 2015. The Clippers incurred a $250,000 fine relating to DeAndre Jordan’s free agency. The league found the team included a third-party endorsement deal in their pitch. This deal, reportedly with Lexus, would have paid Jordan $200,000 annually. These past incidents create a pattern that adds weight to the current allegations.
Steve Ballmer, Aspiration, and the Financial Web
Clippers owner Steve Ballmer, with a personal fortune of $153 billion, stands as the NBA’s richest owner. His financial ties to Aspiration are a critical component of the allegations. Ballmer reportedly wired $50 million to the startup in September 2021. This substantial investment came just a month after Leonard signed a “team-friendly” four-year, $176 million contract extension with the Clippers. This contract deferred his free agency eligibility. Weeks after Ballmer’s investment, the Clippers announced Aspiration as their team sponsor. This was a massive 23-year, $300 million deal. Leonard subsequently registered his personal limited liability company (LLC), “KL2 Aspire,” in November 2021. His $28 million Aspiration contract became effective in April 2022.
Aspiration, once touted as a “green bank,” promised carbon credits and tree planting services. However, the company filed for bankruptcy protection in March 2025. This followed the arrest and guilty plea of its co-founder, Joe Sanberg, who defrauded investors of $248 million. Public bankruptcy filings paint a complex picture of financial relationships. The Clippers are listed as Aspiration’s largest creditor, owed $30 million. Forum Entertainment, another Ballmer-owned entity, claims an $11 million debt. Notably, Leonard’s “KL2 Aspire” LLC is listed as the fourth-largest creditor, claiming a $7 million debt. This intricate web of financial dealings between Ballmer, Aspiration, and Leonard’s personal company fuels the circumvention narrative.
NBA Rules and Potential Penalties
NBA rules on salary cap circumvention are stringent. Violations can lead to severe penalties for both teams and players. According to Article XIII of the NBA’s Collective Bargaining Agreement (CBA), a first-time offense for salary cap circumvention could result in a fine of up to $4.5 million for the team. A second violation can escalate to a $5.5 million fine and the forfeiture of a first-round draft pick. More broadly, the CBA empowers the league to impose fines up to $7.5 million, forfeit multiple draft picks, and even void player contracts. Players involved could face fines up to $350,000. Additionally, team personnel found to have willfully participated could face a one-year suspension.
A significant precedent exists from the 1999-2000 season. The NBA punished the Minnesota Timberwolves and player Joe Smith for a similar scheme. Smith signed a series of one-year, below-market deals. This was secretly predicated on a promise of a future, much richer $86 million contract. Then-commissioner David Stern fined the Timberwolves $3.5 million. The team lost five future first-round draft picks (though two were later returned). Smith’s contracts were voided, and his Bird Rights revoked. Furthermore, then-owner Glen Taylor and chief basketball executive Kevin McHale faced year-long suspensions. This historical case underscores the NBA’s seriousness about maintaining salary cap integrity. The league has since strengthened its monitoring practices, including requiring teams to retain player communication records and allowing random audits.
Frequently Asked Questions
What are the specific allegations against Kawhi Leonard and the Clippers?
Allegations claim Kawhi Leonard received a four-year, $28 million “no-work” endorsement deal from Aspiration, an environmental company partly funded by Clippers owner Steve Ballmer. This deal, according to former Aspiration employees on the “Pablo Torre Finds Out” podcast, was a deliberate attempt to circumvent the NBA’s salary cap, allowing Leonard to receive extra compensation outside of his official team contract. Evidence cited includes internal company discussions explicitly mentioning cap circumvention, Leonard’s lack of promotional activities for Aspiration, and contract clauses linking the endorsement to his Clippers employment.
Who is Steve Ballmer and what is his connection to Aspiration?
Steve Ballmer is the owner of the Los Angeles Clippers and the wealthiest owner in the NBA. His connection to Aspiration is significant: he reportedly invested $50 million into the company in September 2021. Weeks later, the Clippers announced a massive 23-year, $300 million sponsorship deal with Aspiration. This financial intertwining between Ballmer’s personal investment, the Clippers’ team sponsorship, and Leonard’s alleged “no-work” endorsement deal is central to the salary cap circumvention accusations.
What penalties could the Clippers and Kawhi Leonard face if these allegations are proven true?
If proven true, the Clippers and Kawhi Leonard could face severe penalties under the NBA’s Collective Bargaining Agreement. For a first-time salary cap circumvention, the team could be fined up to $4.5 million, potentially increasing to $7.5 million for broader violations. The league could also strip the team of multiple first-round draft picks, void Leonard’s current contract, and fine Leonard up to $350,000. Additionally, any team personnel found to have willfully participated in the scheme, including potentially owner Steve Ballmer, could face a one-year suspension, as seen in the past Joe Smith/Minnesota Timberwolves case.
Conclusion: An Unfolding NBA Scandal
The allegations against Kawhi Leonard and the Los Angeles Clippers represent a significant challenge to the NBA’s integrity. The intricate financial connections between Steve Ballmer, Aspiration, and Leonard’s personal company, coupled with the “no-show” nature of the endorsement, demand thorough investigation. While the Clippers and Ballmer vehemently deny any wrongdoing, the detailed report by “Pablo Torre Finds Out” podcast, supported by former employee testimonies and internal documents, paints a compelling picture. The NBA has a history of taking strict action against salary cap circumvention. The outcome of this unfolding scandal could reshape perceptions of player-team relationships and team ownership practices across the league. Fans, players, and other franchises will be closely watching for how Commissioner Adam Silver and the NBA address these serious claims.
