LOS ANGELES — The National Basketball Association is investigating whether the Los Angeles Clippers circumvented the salary cap by funneling money to Kawhi Leonard through endorsement deals with companies connected to owner Steve Ballmer. The league has hired the law firm Wachtell, Lipton, Rosen & Katz to conduct the inquiry.

On Monday, a report stated that investigators found no proof Ballmer illegally funneled money to Leonard. NBA spokesman Mike Bass disputed this account in a written statement.

The article regarding the LA Clippers investigation — for which the NBA declined to cooperate — contains numerous and significant inaccuracies, Bass said. He added that "The results in this matter will be made clear once the investigation is concluded."

The scrutiny centers on a $28 million endorsement deal Leonard signed with Aspiration, a green tech company backed by Ballmer. Journalist Pablo Torre reported the details of the contract and alleged that Leonard performed little to no promotional work for the firm. Torre raised suspicions that the arrangement was used to pay the player under the table.

Torre reported that Ballmer invested $50 million in Aspiration through his personal LLC in September 2021. This investment predates the Clippers' $300 million partnership with the company in the same month. Last September, a report by Torre alleged the team violated the NBA’s salary cap rules involving the contract between Leonard and the now-bankrupt California-based sustainability services company called Aspiration Fund Adviser LLC.

Financial ties between the franchise and the company extended beyond the owner. The Los Angeles Clippers' limited partner, Dennis J. Wong, invested $1.99 million in Aspiration nine days before the company made an overdue $1.75 million payment to Kawhi Leonard in December 2022. Aspiration laid off approximately 100 employees in December 2022, the same month Leonard's endorsement deal with the company was reported, according to Torre's investigation.

The NBA investigation expanded to examine at least three other companies connected to the franchise, including Daktronics and Boingo Wireless. Attorneys representing Ballmer and the Clippers, led by David N. Kelley of O'Melveny & Myers, have been negotiating with NBA general counsel Rick Buchanan. Sources described the negotiations between the Clippers and the NBA as "spirited."

A Clippers spokesperson stated that connecting players with business partners is "ordinary practice" in the NBA. The organization also stated it never got involved in the actual contract details of Leonard's endorsement deals. Kawhi Leonard and Steve Ballmer denied any wrongdoing regarding the allegations.

The agreed-upon trade sending Kawhi Leonard to the Toronto Raptors had been frozen since early July pending the resolution of the investigation. Initial findings of the investigation were presented to the Clippers in late July. Toronto plans to sign Kawhi Leonard to a two-year, $123.7 million contract extension upon completion of the trade.

Why It Matters

The outcome of this investigation determines whether a major player transaction can proceed and whether the league finds a violation of its financial rules. The freeze on the trade to Toronto leaves a contract extension pending while the league reviews the integrity of its salary cap system.

The case involves high-profile figures including the team owner and a star player, raising questions about how endorsement deals are structured in relation to team ownership. The involvement of multiple companies and the hiring of an external law firm indicate the league is treating the matter with substantial procedural weight.

Timeline

The agreed-upon trade sending Kawhi Leonard to the Toronto Raptors had been frozen since early July pending the resolution of the investigation. Initial findings of the investigation were presented to the Clippers in late July.

What's New

Steve Ballmer invested $50 million in Aspiration through his personal LLC in September 2021, according to reporting by journalist Pablo Torre, which predates the Clippers' $300 million partnership with the company in the same month. The Los Angeles Clippers' limited partner, Dennis J. Wong, invested $1.99 million in Aspiration nine days before the company made an overdue $1.75 million payment to Kawhi Leonard in December 2022.

Last September, a report by journalist Pablo Torre alleged the team violated the NBA’s salary cap rules involving a $28 million endorsement contract between Leonard and the now-bankrupt California-based sustainability services company called Aspiration Fund Adviser LLC. Aspiration laid off approximately 100 employees in December 2022, the same month Leonard's endorsement deal with the company was reported, according to journalist Pablo Torre's investigation.

NBA spokesman Mike Bass issued a statement saying, The article regarding the LA Clippers investigation — for which the NBA declined to cooperate — contains numerous and significant inaccuracies. Sources described the negotiations between the Clippers and the NBA as "spirited." NBA Commissioner Adam Silver stated publicly that he wanted the investigation wrapped up before the new season.

How Sources Differ

Reporting by journalist Pablo Torre states that Steve Ballmer invested $50 million in Aspiration through his personal LLC in September 2021, which predates the Clippers' $300 million partnership with the company. Torre also reported that Kawhi Leonard signed a $28 million endorsement deal with Aspiration, a green tech company backed by Clippers owner Steve Ballmer.

Records indicate the Los Angeles Clippers' limited partner, Dennis J. Wong, invested $1.99 million in Aspiration nine days before the company made an overdue $1.75 million payment to Kawhi Leonard in December 2022. This contrasts with reports from journalist Pablo Torre that focus on Leonard signing a $28 million endorsement deal with Aspiration, a green tech company backed by Clippers owner Steve Ballmer.

Data shows the Los Angeles Clippers' limited partner, Dennis J. Wong, invested $1.99 million in Aspiration nine days before the company made an overdue $1.75 million payment to Kawhi Leonard in December 2022. NBA investigation records state the NBA is conducting an investigation into whether the Los Angeles Clippers circumvented the salary cap through Kawhi Leonard's endorsement deals.

Journalist Pablo Torre reported that Kawhi Leonard signed a $28 million endorsement deal with Aspiration, a green tech company backed by Clippers owner Steve Ballmer. Torre's investigation also notes that Aspiration laid off approximately 100 employees in December 2022, the same month Leonard's endorsement deal with the company was reported.

Journalist Pablo Torre reported that Kawhi Leonard signed a $28 million endorsement deal with Aspiration, a green tech company backed by Clippers owner Steve Ballmer. Additional context notes that Silver spoke after a board of governors meeting in New York — one that Clippers owner Steve Ballmer attended — and said the league will wait to see the report from the outside firm it has hired to run its investigation before taking next steps.

Journalist Pablo Torre reported that Kawhi Leonard signed a $28 million endorsement deal with Aspiration, a green tech company backed by Clippers owner Steve Ballmer. Public statements indicate that Kawhi Leonard and Steve Ballmer denied any wrongdoing regarding the allegations.

Journalist Pablo Torre reported that Kawhi Leonard signed a $28 million endorsement deal with Aspiration, a green tech company backed by Clippers owner Steve Ballmer. A report stated that investigators found no proof Steve Ballmer illegally funneled money to Kawhi Leonard.