Clippers react after being exposed in shady deal: were they wronged?

The Los Angeles Clippers are under scrutiny following explosive allegations involving a $28 million payment to star forward Kawhi Leonard through a now-bankrupt company backed by team owner Steve Ballmer. This controversial report, brought to light by journalist Pablo Torre, suggests that Leonard was involved in a “no-show job” designed to help the Clippers circumvent the NBA salary cap.

In response to the growing firestorm, the Clippers have officially released a statement denying all wrongdoing. The organization insists neither Steve Ballmer nor the team engaged in misconduct and claims to have cut ties with the company in question, Aspiration, during the 2022–23 NBA season.

Clippers Deny All Allegations in Strong Statement

The Clippers addressed the situation in a statement provided to The Athletic, rejecting the idea that they or Ballmer acted improperly:

“Neither Mr. Ballmer nor the Clippers circumvented the salary cap or engaged in any misconduct related to Aspiration. Any contrary assertion is provably false. The team ended its relationship with Aspiration years ago, during the 2022-23 season, when Aspiration defaulted on its obligations. Neither the Clippers nor Mr. Ballmer was aware of any improper activity by Aspiration or its co-founder until after the government instituted its investigation. The team and Mr. Ballmer stand ready to assist law enforcement in any way they can.”

Despite this strong denial, the league has confirmed it is investigating the matter.

Aspiration: The Company at the Center of the Controversy

At the center of this growing scandal is Aspiration, a company that received $50 million in funding from Ballmer. According to Torre’s report, Aspiration entered into a $28 million contract with KL2 Aspire LLC, a company reportedly managed by Leonard. The endorsement agreement allegedly allowed Leonard to collect payment without ever performing any meaningful duties — essentially, a “no-show job.”

Aspiration filed for bankruptcy in March and reportedly still owes Leonard $7 million. Leonard’s company, KL2 Aspire LLC, is listed among the company’s creditors.

What makes this deal particularly suspicious is a clause in the contract reportedly stating Leonard would only be paid if he remained a member of the Clippers. This has raised red flags among league officials and sports law analysts alike, suggesting the deal may have been an attempt to offer Leonard extra compensation without it counting against the NBA salary cap.

What Is at Stake for the Clippers?

If the NBA finds the Clippers guilty of circumventing salary cap rules, the consequences could be severe. Under the league’s current collective bargaining agreement, the team could face:

• A fine of up to $4.5 million

• The loss of a first-round draft pick

• Possible voiding of Kawhi Leonard’s contract

These penalties are designed to protect the integrity of the league’s competitive balance. Salary cap violations are considered serious infractions and can lead to long-term consequences for a franchise.

Kawhi Leonard’s Role and Contract History

Kawhi Leonard joined the Clippers in 2019 after leading the Toronto Raptors to an NBA Championship and winning Finals MVP. His signing was viewed as a pivotal moment for the Clippers franchise, signaling their rise as a legitimate contender.

Since joining the team, Leonard has signed three major contracts:

• In 2019: A three-year, $103 million deal

• In August 2021: A four-year, $176.3 million extension

• In January 2024: A three-year, $153 million extension

The report now questions whether Leonard received more than what was legally allowed under NBA rules through outside business deals funded by Ballmer.

Despite the controversy, Leonard remains a key figure on the team. Last season, he averaged 21.5 points, 5.9 rebounds, and shot 49.8% from the field, 41.1% from three, and 81% from the free-throw line. He continues to be one of the league’s most efficient two-way players and is a six-time All-NBA selection and two-time Finals MVP.

Timeline of Events Leading to the Investigation

1. 2019: Kawhi Leonard signs with the Clippers. Dennis Robertson (Leonard’s uncle and advisor) is investigated by the NBA for reportedly asking for impermissible benefits during free agency. No wrongdoing is found.

2. 2021–2022: Aspiration’s business relationship with KL2 Aspire LLC is reportedly active.

3. 2022–2023 season: The Clippers claim to have ended their relationship with Aspiration after the company defaulted.

4. March 2025: Aspiration files for bankruptcy, with KL2 Aspire LLC listed as a creditor.

5. September 2025: Pablo Torre publishes a report revealing details of the $28 million agreement and possible violations.

6. September 2025: NBA confirms it is launching an official investigation into the matter.

The Role of Steve Ballmer

Steve Ballmer, one of the wealthiest owners in professional sports and former CEO of Microsoft, has invested heavily in turning the Clippers into a world-class franchise. His involvement in the Aspiration funding — $50 million, according to Torre — is now under a microscope.

The Clippers insist Ballmer had no knowledge of any improper activity. However, if the NBA determines that Ballmer’s investment was used as a method to funnel off-the-books payments to Leonard, it would represent a serious breach of league conduct policies.

Is This a Repeat of 2019 Allegations?

This isn’t the first time Kawhi Leonard’s off-court dealings have drawn attention. In 2019, the NBA launched an investigation into Dennis Robertson, Leonard’s personal advisor and uncle, after reports emerged that he requested private perks and benefits as part of Leonard’s free agency. While the investigation found no direct violations at the time, the current scandal could lead the league to re-examine prior dealings between Leonard and the Clippers.

Legal and Ethical Implications

From a legal standpoint, if the Aspiration deal was misrepresented or hidden from the NBA’s accounting, it could potentially constitute fraud under the league’s financial governance. There may also be questions about contract law, especially if Leonard’s endorsement contract contained clauses tying payment to team affiliation.

Ethically, this controversy places both the Clippers’ management and Leonard’s camp under a harsh spotlight. The NBA’s salary cap is designed to ensure parity among teams. Circumventing it would not only violate rules but also undermine fair competition in the league.

Conclusion: A League Watching Closely

The situation surrounding Kawhi Leonard, Steve Ballmer, and the LA Clippers continues to unfold, but the stakes are already high. The alleged $28 million “no-show job” threatens the reputation of one of the NBA’s top franchises and could lead to significant penalties if proven true.

With the NBA officially investigating, the next few weeks will be critical in determining whether this was simply a failed business relationship — or a deeper attempt to manipulate the salary cap. The Clippers may have issued a firm denial, but the court of public opinion — and the league’s compliance office — will ultimately have the final say.