LA Clippers Make Announcement After Concerning Kawhi Leonard Report

LA Clippers star Kawhi Leonard and owner Steve Ballmer could be in some trouble

May 3, 2025; Denver, Colorado, USA; LA Clippers forward Kawhi Leonard (2) warms up before the game against the Denver Nuggets during game seven of first round for the 2025 NBA Playoffs at Ball Arena. Mandatory Credit: Ron Chenoy-Imagn Images | Ron Chenoy-Imagn Images

The LA Clippers made headlines on Wednesday morning, and not because they made another free agency signing. Six-time NBA All-Star Kawhi Leonard and the Clippers have been accused of circumventing the salary cap, as the star forward reportedly indirectly received millions of dollars from owner Steve Ballmer through a fraudulent company.

Investigative journalist Pablo Torre recently reported that this company, Aspiration, filed for bankruptcy, and that they still owe "KL2 Aspire LLC" $7 million. Over four years, the company agreed to pay "KL2" $28 million, which, as many can guess, is none other than Kawhi Leonard, despite the Clippers star never endorsing or even publicly acknowledging the brand.

"It was to circumvent the salary cap," a former Aspiration employee told Torre.

Exclusive: Kawhi Leonard signed a $28M endorsement deal for a "no-show job" with a fraudulent tree-planting company funded by $50M from Clippers owner Steve Ballmer, according to documents obtained by @PabloTorre.

"It was to circumvent the salary cap," an inside source says. pic.twitter.com/F6z5pNEkI1

— Pablo Torre Finds Out (@pablofindsout) September 3, 2025

Of course, this news has been the talk of the NBA community on Wednesday, as the league has not seen a public situation like this in a long time. Of course, this means that nobody truly knows how the league would handle it if it were true, but the Clippers are trying to make sure this does not get out of hand.

LA Clippers release statement

The Clippers sent a statement to Torre amid all of this talk about the situation between Ballmer and Leonard.

"Neither Mr. Ballmer nor the Clippers circumvented the salary cap or engaged in any misconduct related to Aspiration. Any contrary assertion is provably false. The team ended its relationship with Aspiration years ago, during the 2022-23 season, when Aspiration defaulted on its obligations," the Clippers said in their statement.

"Neither the Clippers nor Mr. Ballmer was aware of any improper activity by Aspiration or its co-founder until after the government instituted its investigation. The team and Mr. Ballmer stand ready to assist law enforcement in any way they can."

The LA Clippers’ official statement to the claims of salary cap circumvention:

“Neither Mr. Ballmer nor the Clippers circumvented the salary cap or engaged in any misconduct related to Aspiration. Any contrary assertion is provably false. The team ended its relationship with… pic.twitter.com/sbVUdZwKHz

— APHoops (@APH00PS) September 3, 2025

What this means for the Clippers

Of course, if this situation is what many fans are making it to be, then the Clippers would be in trouble. The franchise is not allowed to use a third party to pay one of its players more than he is contractually owed or allowed to earn under the terms of the NBA's salary cap. This would be a way for the Clippers to pay Leonard more than they are allowed to, but the organization is claiming there is no ill intent.

However, the Clippers may be steering clear of trouble.

"Star players often sign contracts with big team sponsors. Some may have clauses that say the deal ends if they move to another team because they don’t sponsor other teams," NBA agent Nate Jones explains. "...Pretty much every NBA team star has a deal with a major team sponsor(s). It’s not considered circumvention because there’s an exchange of rights."

Good episode. Just want to clear up something the episode mentions as not common that is actually common. Star players often sign contracts with big team sponsors. Some may have clauses that say the deal ends if they move to another team because they don’t sponsor other teams… https://t.co/9ryBAYao3v

— Nate Jones (@JonesOnTheNBA) September 3, 2025

Of course, this would not be a topic of discussion at all if Leonard simply appeared in an advertisement for the company. Getting $28 million for doing nothing is suspicious, although it might not be illegal. Time will tell how this entire situation is handled and if the NBA gets involved in an investigation.