Kawhi Leonard report draws comparisons to Wolves' infamous Joe Smith deal

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A bombshell report from investigative journalist Pablo Torre on Wednesday morning alleges that the Los Angeles Clippers circumvented the NBA salary cap by signing star Kawhi Leonard to a $28 million endorsement deal for a "no-show job" with a fraudulent tree-planting company funded by team owner Steve Ballmer.
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.
— Pablo Torre Finds Out (@pablofindsout) September 3, 2025
"It was to circumvent the salary cap," an inside source says. pic.twitter.com/F6z5pNEkI1
The shocking news, which will inevitably be investigated further by the NBA, has already drawn comparisons to the most recent time a franchise got caught circumventing the league's salary cap. That was, of course, the Minnesota Timberwolves, whose illegal deals with forward Joe Smith came to light in 2000 and led to severe punishments from then-commissioner David Stern.
Stern fined Glen Taylor and the Wolves $3.5 million, voided Smith's contracts, stripped the team of its next five first-round picks (two were eventually returned) and essentially suspended Taylor and general manager Kevin McHale for a year. It was a massive punishment that may very well have contributed to the way the Kevin Garnett era ended in Minnesota — and perhaps to the franchise's subsequent years of dysfunction and non-competitiveness as well.
This Leonard situation, if proven accurate, is the closest thing the league has seen since the infamous Smith scandal, as many have noted on social media.
Wow. The new Joe Smith???? https://t.co/bqMjqc9j2y
— Jon Krawczynski (@JonKrawczynski) September 3, 2025
Just in case, here are the penalties when the Minnesota Timberwolves were found to have circumvented the salary cap to sign Joe Smith:
— Keith Smith (@KeithSmithNBA) September 3, 2025
-5 first-round picks forfeited (two were returned later)
-$3.5M fine
-Smith's most-recent contract was voided, and his Bird Rights were stripped…
Last time there was a proven salary cap circumvention case in the NBA (Joe Smith x Timberwolves), this was the punishment... pic.twitter.com/inbAPctSYe
— NBA University (@NBA_University) September 3, 2025
Joe Smith … you’re finally free
— Subscribe to the You Know Ball Patreon (@TrillBroDude) September 3, 2025
Because this is a new and developing story, it's largely unclear what action current commissioner Adam Silver and the league might take against the Clippers if they are found to have circumvented the cap with payments to Leonard. The current CBA, as one X/Twitter user pointed out, may have guidelines for less severe punishments than what Stern imposed on the Timberwolves 25 years ago.
The current CBA’s guideline to penalties for cap circumvention:
— APHoops (@APH00PS) September 3, 2025
- $4.5M fine for first offense
- $5.5M fine for second offense
- Loss of one first-round draft pick
- Possible voiding of circumvented player’s contract pic.twitter.com/5hE9ig5DDx
It's going to be fascinating to see what happens.
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Will Ragatz is a senior writer for Vikings On SI, who also covers the Twins, Timberwolves, Gophers, and other Minnesota teams. He is a credentialed Minnesota Vikings beat reporter, covering the team extensively at practices, games and throughout the NFL draft and free agency period. Ragatz attended Northwestern University, where he studied at the prestigious Medill School of Journalism. During his time as a student, he covered Northwestern Wildcats football and basketball for SB Nation’s Inside NU, eventually serving as co-editor-in-chief in his junior year. In the fall of 2018, Will interned in Sports Illustrated’s newsroom in New York City, where he wrote articles on Major League Baseball, college football, and college basketball for SI.com.
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