Breaking Down Clippers’ Potential Punishments Over Kawhi Leonard Salary Cap Report

L.A. reportedly tried to circumvent the salary cap via payments through a tree-planting company.

The Clippers reportedly used a tree-planting company to pay Kawhi Leonard more money. / Ron Chenoy-Imagn Images

Pablo Torre dropped an NBA bombshell on Wednesday morning, reporting that the Clippers and Kawhi Leonard may have circumvented the league's salary cap.

According to evidence obtained by Torre—which he laid out on his podcast, Pablo Torre Finds Out—the L.A. star signed an endorsement deal with a now-bankrupt tree-planting company called Aspiration Inc. back in 2022. Said company was partially funded by Clippers owner Steve Ballmer and, per further documentation, agreed to pay Leonard $7 million over four years for a total of $28 million.

A former employee of Aspiration's financial department told Torre that the pact was made to "circumvent the [NBA's] salary cap," and that Leonard was the highest-paid marketer for the company, but "didn't have to do anything."

Leonard apparently never once publicly referenced or mentioned Aspiration, and a clause in his contract stated that if he left the Clippers, the deal would be terminated.

The question now becomes: if the NBA were to investigate this further, what could the potential punishments be for L.A.? Here's a look:

What Could Punishment Look Like for Clippers, Kawhi Leonard?

The NBA hasn't levied punishments for salary cap circumvention in over 25 years, dating back to 1999 when the Timberwolves were found to have secretly agreed to pay forward Joe Smith $86 million over seven years. Said penalties included the team forfeiting five first-round picks (two of which were returned), a $3.5 million fine, Smith's most recent contract being voided and his Bird Rights being stripped away, a suspension of owner Glen Taylor, and general manager Kevin McHale being forced to take a leave of absence.

Since then, the NBA's collective bargaining agreement between the league and its players has formally outlined punishments for cap circumvention. According to the NBA CBA (page 341), the current guidelines include:

• $4.5 million fine for a first offense
• $5.5 million fine for a second offense
• The loss of one first-round draft pick
• Possible voiding of the circumvented player’s contract

We'll see if the NBA ultimately steps in. If they do, the above is what the Clippers are likely looking at for discipline.

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