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NBA Makes Decision On Firm for Clippers, Kawhi Leonard Investigation

Ahead of a pending investigation into Kawhi Leonard and the LA Clippers, the NBA has turned to a familiar law firm, announced Friday
Matt Guzman|
Apr 29, 2025; Denver, Colorado, USA; LA Clippers forward Kawhi Leonard (2) warms up before game five of the first round for the 2025 NBA Playoffs against the Denver Nuggets at Ball Arena.
Apr 29, 2025; Denver, Colorado, USA; LA Clippers forward Kawhi Leonard (2) warms up before game five of the first round for the 2025 NBA Playoffs against the Denver Nuggets at Ball Arena. | Ron Chenoy-Imagn Images

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Los Angeles Clippers

Thursday night, during his exclusive interview with ESPN, LA Clippers owner Steve Ballmer made clear his team takes NBA compliance seriously.

On Wednesday, the NBA world was shocked to learn from The Athletic's Pablo Torre that allegations were brought forth against Ballmer, Kawhi Leonard, and the Clippers regarding a multi-million-dollar endorsement deal that Leonard received, which was viewed as a way to circumvent the cap. Friday afternoon, the league also showed they are taking compliance seriously as well.

Reported first by The Athletic, the NBA has hired law firm Wachtell, Lipton, Rosen & Katz to conduct its investigation into allegations that Kawhi Leonard signed a "no-show" contract with now-defunct environmental start-up Aspiration as a way for Ballmer and the Clippers to circumvent the league's salary cap under the table.

NBA Hires Law Firm for Cap Investigation

The claim was first made by Pablo Torre, who hosts a podcast now licensed by The Athletic entitled "Pablo Torre Finds Out." Torre explained that several sources who used to work for Aspiration admitted that Ballmer, who helped fund the company, played a role in the deal.

Ballmer vehemently denied those allegations.

"I made an investment in these guys thinking it was on the up-and-up," Ballmer explained, "and they conned me at this stage. I have no ability to predict why they might have done anything they did, let alone the specific contract with Kawhi."

Aspiration fired for bankruptcy in the middle of its deals with both Leonard and the Clippers; the company's co-founder Joe Sanberg now faces 40 years in prison after pleading guilty to two counts of wire fraud.

Aspiration's bankruptcy paperwork was obtained by Torre, who found that Leonard's personal limited liability company, "KL2 Aspire" was still owed $7 million. Since the allegations were made, neither Leonard nor his team has made a formal statement. Meanwhile, the Clippers have issued two.

"The Clippers take NBA compliance extremely seriously," one of them read. "The Clippers will also continue to cooperate with law enforcement in its investigation into Aspiration's blatantly fraudulent activity."

Wachtell Lipton is the same law firm the NBA used to investigate two previous NBA owners. In 2014, allegations against then-Clippers owner Donald Sterling for racially insensitive comments toward Magic Johnson forced Sterling to sell the team to Ballmer.

A separate instance in 2022 exposed then-Phoenix Suns owner of several inappropriate remarks, behavior. Sarver was suspended for one season, and chose to sell the team in response.

Nothing has come to light regarding the Clippers since Torre's podcast beyond Ballmer's animated denial in an exclusive on-air interview with ESPN. But, considering the NBA has hired a familiar partner, further information will be explained and dealt with as necessary.

The Clippers believe they'll come out on the right side of history this time.

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Matt Guzman
MATT GUZMAN

Matt Guzman is a sports journalist and storyteller from Austin, Texas. He serves as a credentialed reporter and site manager for San Antonio Spurs On SI and a staff writer for multiple collegiate sites in the same network. In the world of professional sports, he is a firm believer that athletes are people, too, and intends to tell stories of players and teams’ true, behind-the-scenes character that otherwise would not be seen through strong narrative writing, hooking ledes and passionate words.

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