Clippers Entangled in Salary-Cap Controversy Over Alleged $28M “No-Show” Deal with Kawhi Leonard
A bombshell report by investigative journalist Pablo Torre now casts the Los Angeles Clippers and star forward Kawhi Leonard in a potential salary-cap violation involving a large, undisclosed payment through a shell company.
Key Allegations
Off-Books Payment Scheme
Documents unearthed from the bankruptcy filings of Aspiration, an eco-fintech firm backed by Clippers owner Steve Ballmer, reveal that Leonard was listed as manager of KL2 Aspire LLC, a recipient of $7 million annually over four years, totaling $28 million, emanating from the company. Commissioned as a marketing agreement, the deal reportedly required no promotional work from Leonard.
Sports Business Journal
Purpose: Salary Cap Circumvention
A former Aspiration finance employee told Torre that the deal was explicitly “to circumvent the salary cap,” enabling the Clippers to supplement Leonard’s official NBA salary without counting against their financial limits, a direct conflict with league regulations.
No Public Association
Unlike other celebrity endorsers, Leonard never publicly endorsed Aspiration, raising suspicions that the deal was structured solely for financial maneuvering, not for genuine sponsorship purposes.
Historical Context
If proven, the situation would resemble the infamous 1999–2000 Minnesota Timberwolves scandal involving Joe Smith. That case led to severe sanctions: a $3.5 million fine, voided contracts, and forfeiture of draft picks.
Clippers’ Response & NBA’s Silence
The Clippers have publicly denied the allegations. In a statement to Torre, they asserted, “Neither Mr. Ballmer nor the Clippers circumvented the salary cap or engaged in any misconduct related to Aspiration. Any contrary assertion is provably false.”
As of now, the NBA has not commented on whether it will launch an investigation into the matter.
Potential Fallout
Should the NBA pursue the allegations, the repercussions could be severe, ranging from financial penalties to the voiding of contracts and substantial loss of draft capital. Considering the Clippers have already traded away several future first-round picks, any sanction could critically derail the team’s long-term competitive prospects.