NBA Launches Investigation into Inglewood’s Clippers Over Alleged $48M Salary Cap Violation with Kawhi Leonard

The NBA has launched a formal investigation into allegations that the Los Angeles Clippers and owner Steve Ballmer paid star player Kawhi Leonard $28 million through a “no-show job” as a way to circumvent the league’s salary cap, according to multiple reports.

The investigation centers on Leonard’s endorsement deal with Aspiration, a now-bankrupt tree-planting company that received $50 million in funding from Ballmer and partnered with the Clippers in developing the team’s Intuit Dome arena in Inglewood.

According to a report by journalist Pablo Torre, Leonard signed a four-year, $28 million endorsement deal with Aspiration but allegedly never performed any promotional work for the company—no commercials, tweets, or sponsored appearances. Additional reporting from the Boston Sports Journal revealed a secret side deal worth another $20 million, bringing Leonard’s total compensation to approximately $48 million.

The NBA confirmed it has hired the New York-based law firm Wachtell, Lipton, Rosen & Katz to conduct a thorough investigation into the allegations. An NBA spokesperson told Yahoo Sports that the league is aware of the reports and has commenced its inquiry.

Both Leonard and the Clippers have strongly denied any wrongdoing. The team issued a lengthy statement calling the allegations “absurd” and saying they “welcome” the NBA’s investigation.

“None of us did no wrongdoing,” Leonard said Monday, expressing confidence that the investigation will exonerate him and the organization.

The Clippers emphasized in their statement that “the notion that Steve invested in Aspiration in order to funnel money to Kawhi Leonard is absurd,” defending both Ballmer’s business decisions and the legitimacy of Leonard’s endorsement arrangement.

The controversy takes on additional significance given Aspiration’s recent troubles. The company filed for bankruptcy in March 2025, and co-founder Joseph Sanberg recently pleaded guilty to a $243 million fraud charge in an unrelated case.

For Inglewood residents, the investigation casts a shadow over the Clippers’ inaugural full season at the Intuit Dome, the state-of-the-art $2 billion arena that opened earlier this year as a centerpiece of the city’s entertainment district. The venue has been celebrated as a major economic driver for the community, hosting both Clippers games and major entertainment events.

If the NBA determines that salary cap violations occurred, potential penalties could include fines, loss of draft picks, or other sanctions against the franchise. The league has historically taken salary cap violations seriously, as the cap system is designed to maintain competitive balance across all teams.

Leonard, a two-time NBA champion and two-time Finals MVP, has been one of the league’s premier players when healthy. His presence has been central to the Clippers’ championship aspirations and their ability to attract fans to the new Inglewood venue.

The investigation timeline remains unclear, but league officials have indicated they take these allegations seriously and will conduct a thorough review of all relevant financial records and business relationships.

As the Clippers prepare for their 2025-26 season opener on October 22 at Utah, the investigation adds an unexpected complication to what should be a celebratory first full season in their new Inglewood home. The team’s first home game at Intuit Dome is scheduled for October 23 against the Golden State Warriors.

The outcome of the investigation could have significant implications not just for the Clippers organization, but for how NBA teams structure endorsement deals and business relationships with players moving forward.