Is Kawhi Leonard’s $28M deal under NBA investigation? Insider uncovers latest update on Clippers’ controversial move

Following the revelations about Kawhi Leonard's alleged NBA salary scheme, the NBA has launched a formal investigation, per NBA insider Shams Charania.

NBA spokesman Mike Bass said in a statement on Wednesday that the league is "aware" of the reports of the LA Clippers circumventing the salary cap.

Shams Charania

@ShamsCharania

NBA spokesman Mike Bass tells ESPN: “We are aware of this morning’s media report regarding the LA Clippers and are commencing an investigation.”

In the latest episode of his "Pablo Torre Finds Out" podcast, Pablo Torre said that the Clippers and Leonard circumvented the NBA's salary cap through a "no-show job" arrangement. Torre alleged that Leonard agreed to a four-year, $28 million endorsement deal with Aspiration, a start-up company funded by Clippers owner Steve Ballmer.

Torre added that Leonard's deal with Aspiration came nine months after he signed a four-year, $176.3 million maximum contract with LA in August 2021.

Citing the company's documents Torre obtained, Leonard's Aspiration deal had a clause that it would be voided should he leave the Clippers. An unnamed former Aspiration employee told Torre that Leonard's payment was to "circumvent the salary cap."

Torre said Ballmer bestowed a $50 million investment in Aspiration on Sept. 14, 2021. Later that month, the Clippers announced a sponsorship deal with the environmental start-up company.

Under the NBA's current collective bargaining agreement rule on circumvention, teams could be punished.

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What would Kawhi Leonard's Clippers fine look like?

Should the allegations prove to be true, Kawhi Leonard and the LA Clippers could face hefty penalties.

Under Section 3 of Article XIII of the CBA, penalties include fines up to $7.5 million, forfeiture of future draft picks and suspensions to involved team personnel for one year. The player could also receive a $350,000 fine from the league and the player's contract could be voided.

In the previous case of salary cap circumvention, the Minnesota Timberwolves were found guilty of having an under-the-table agreement with Joe Smith. During the 1999-00 season, then-NBA commissioner David Stern issued a $3.5 million fine, stripped five first-round picks and voided Smith's contract.

In addition, Stern suspended Wolves owner Glen Taylor for nine months and reportedly forced then-general manager Kevin McHale to take a leave of absence.

Keith Smith

@KeithSmithNBA

Just in case, here are the penalties when the Minnesota Timberwolves were found to have circumvented the salary cap to sign Joe Smith: -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

In response to the allegations, the Clippers said in a statement to Torre that Steve Ballmer and the team are not involved in any "misconduct."

In 2025-26, Kawhi Leonard is set to appear in his 14th NBA season and his sixth with the Clippers. In January 2024, the two-time NBA Finals MVP signed a three-year, $153 million deal to remain with LA until 2027.