I'm not a sport knob, but this story is getting some traction. -DR
Everything about the Clippers' Kawhi Leonard contract scandal explained Everything about the Clippers' Kawhi Leonard contract scandal explained
No official money laundering charges have been confirmed against the LA Clippers organization or its owner, Steve Ballmer. However, the team is under an NBA investigation for allegations of salary cap circumvention involving player Kawhi Leonard and a now-bankrupt company, Aspiration, in which
Ballmer was an investor.
Allegations of salary cap circumvention
In September 2025, investigative journalist Pablo Torre reported that the Clippers allegedly helped facilitate a secret $28 million "no-show" endorsement deal for Kawhi Leonard with the fintech company Aspiration, as a way to skirt the NBA's salary cap rules.
The key aspects of the allegations are:
The deal:
Leonard reportedly signed a four-year, $28 million endorsement contract with Aspiration in 2022. This followed a previous NBA investigation into Leonard's 2019 free agency, prompted by rumors that his uncle and business manager, Dennis Robertson, was seeking improper benefits.
Ballmer's investment:
The report alleges that Clippers owner Steve Ballmer, through his private LLC, invested $50 million into Aspiration in 2021. This investment occurred a month after Leonard signed a contract extension with the Clippers. No work performed: According to sources, Leonard received payments from Aspiration but performed no promotional services for the company.
Company failure:
Aspiration, which once had a $300 million sponsorship deal with the Clippers, later defaulted on its obligations and filed for bankruptcy in March 2025. One of its co-founders has since pleaded guilty to federal wire fraud charges.
Minority owner involvement:
A subsequent report revealed that Clippers minority owner Dennis Wong invested $1.99 million in Aspiration in December 2022, shortly before the company made a late $1.75 million payment to Leonard.
The team's response and NBA investigation
Clippers denial: The Clippers organization and Steve Ballmer have denied any wrongdoing. In a statement, they called the allegations "provably false" and asserted that they were unaware of any improper activity by Aspiration until after the government's investigation began.
Ballmer's defense: Ballmer stated that he felt "conned" by Aspiration and denied any involvement in Leonard's endorsement contract, claiming he had no control over the company despite his investment.
NBA investigation: The NBA launched an investigation into the claims. If the league finds that the Clippers violated salary cap rules, potential penalties could include large fines, loss of draft picks, or voiding contracts.