How Kawhi Leonard's Investigation Could Get Impacted by Joe Sandberg's Guilty Plea

Former Aspiration co-founder Joseph Sandberg has plead guilty to two counts of federal fraud charges

Oct 15, 2025; Sacramento, California, USA; Los Angeles Clippers forward Kawhi Leonard (2) stands during the playing of the national anthem before the game against the Sacramento Kings at Golden 1 Center. Mandatory Credit: Sergio Estrada-Imagn Images | Sergio Estrada-Imagn Images

The NBA's investigation into the Los Angeles Clippers just had another layer of intrigue added to it for owner Steve Ballmer and star forward Kawhi Leonard.

According to The Athletic's Mike Vorkunov, "Aspiration co-founder Joseph Sanberg pleaded guilty to two counts of federal fraud charges Monday in Los Angeles."

The $2M and $10M investments into Aspiration made by Dennis Wong and Steve Ballmer respectively, occurred after Ballmer met with the new CEO in November 2022 and it was intended to be a show of support and confidence in the new company leadership, per @WSJ.

"By late 2022, with… pic.twitter.com/LviO1yw3po

— APHoops (@APH00PS) October 20, 2025

"There is a lot of misinformation out there about Joe Sanberg," Marc Mukasey, an attorney for Sanberg, said. "At the appropriate time, in a proper legal filing, we will provide a full picture of who he is."

Why This Could Hurt the Clippers

The guilty plea could hurt the Clippers' legal position as well.

The Athletic reports that Sanberg "pushed for the company to give Leonard a four-year, $28 million endorsement deal for which Leonard never did anything." Additionally, he "gave Leonard $20 million in company equity."

This is slightly damaging because it takes away the Clippers' ability to argue good faith.

Kawhi Leonard’s contract details with Aspiration have surfaced, and by his second payment, the company was already facing mounting financial issues that led to canceled ad campaigns and unpaid bills, per @WSJ:

• Autograph signings
• Meet and greets
• Community service events… pic.twitter.com/DpPWqDBLqZ

— APHoops (@APH00PS) October 20, 2025

When a convicted member of fraud is the driving force behind a deal that appears suspicious, the organization can no longer credibly claim they were engaging in normal business.

The guilty plea also provides the NBA with leverage as well. Sanberg now faces sentencing and potential cooperation agreements.

If NBA investigators have him testify about the Leonard deal, he may have incentive to provide that information in exchange for innocence.

The Path Forward

"Sanberg will be sentenced on Feb. 23," according to The Athletic, and that date is potentially significant for the NBA's investigation.

This could reveal additional details about Sanberg's fraudulent activities and their timeline, overlapping with the period when he was allegedly dealing with Leonard's payments.

High-ranking former Aspiration executives contradicted Pablo Torre’s low-level anonymous sources, saying there was never any attempt to use the Kawhi Leonard deal to evade the salary cap, per @WSJ.

“Former top executives at Aspiration said that although people inside Aspiration… pic.twitter.com/1ekfWYavI8

— APHoops (@APH00PS) October 20, 2025

The NBA now has access to someone who has admitted to fraud and may be willing to provide testimony about the true workings of the Leonard arrangement.

The guilty plea does not prove the Clippers violated salary cap rules in any way, though.

However, it eliminates any argument that the Leonard endorsement emerged from normal, legitimate business deals.

When the main architect of a suspicious deal admits to fraud, the deal itself becomes nearly impossible to defend.

Oct 15, 2025; Sacramento, California, USA; Los Angeles Clippers forward Kawhi Leonard (2) dribbles the ball up the court during the third quarter against the Sacramento Kings at Golden 1 Center. Mandatory Credit: Sergio Estrada-Imagn Images | Sergio Estrada-Imagn Images

For the Clippers, they could prove that this all happened behind their back and that they too were "conned" as was the NBA as owner Steve Ballmer mentioned.

In any case, the dates and guilty plea are not significant but will definitely be added to an already long investigation process by the NBA and the Clippers.