The NBA has initiated an investigation into serious claims that the Los Angeles Clippers funneled $28 million in concealed payments to star forward Kawhi Leonard using a now-defunct fintech firm. If substantiated, this could mark one of the most brazen attempts in the league’s history to bypass salary cap regulations, an infraction that typically results in severe repercussions.
The Alleged $28 Million Deal
The controversy revolves around Aspiration Partners, a once-promising environmental fintech company partially backed by Clippers owner Steve Ballmer. Bankruptcy documents and contracts obtained by podcaster Pablo Torre reveal that a subsidiary of Aspiration, known as Aspiration QFZ, entered into a four-year, $28 million endorsement contract with Leonard’s business entity, KL2 Aspire LLC, in 2022.
This deal raised concerns, as Torre and former Aspiration employees could not locate any evidence of Leonard promoting the company. No significant social media posts, public appearances, or advertising campaigns linked Leonard to Aspiration were found, aside from a solitary tweet from the Clippers tagging both the brand and Leonard. A former employee described the contract as a “no-show job.”
Bankruptcy filings indicate that the Clippers are owed $30 million by Aspiration, while KL2 Aspire is owed $7 million. The overlapping debts from both the team and Leonard’s company have led to speculation that this “endorsement” might have served as a means to channel additional funds to the Clippers’ star player.
The Clippers’ Denial
Steve Ballmer and the Clippers have firmly denied the allegations, branding them as “flat-out wrong.” In an official statement, the team asserted:
“Neither the Clippers nor Steve Ballmer circumvented the salary cap. The idea that Steve invested in Aspiration to funnel money to Kawhi Leonard is absurd. He invested because Aspiration’s co-founders presented themselves as committed to customer service while prioritizing environmental protection.”
The Clippers emphasized that Aspiration acted as a sponsor from 2021 to 2023, prior to defaulting on its financial commitments, and insisted that Leonard’s endorsement deal was independent, with neither Ballmer nor the organization having oversight over it.
Ballmer, Aspiration, and the Collapse
Aspiration was once valued at several hundred million dollars and had partnerships with various sports teams and celebrities. In 2021, Ballmer-affiliated entities and Oaktree Capital invested $315 million into the company.
However, Aspiration fell apart in 2024–2025 amid allegations of a large-scale fraud scandal. Co-founder Joseph Sanberg was arrested and subsequently pled guilty to a $243 million scheme that deceived investors. The company entered bankruptcy proceedings in March 2025.
In the bankruptcy filings, both the Clippers and Leonard’s KL2 Aspire are listed as creditors, prompting questions about whether Ballmer’s roles as team owner and investor blurred financial boundaries in ways that could breach NBA regulations.
Why Salary Cap Rules Matter
The NBA’s salary cap is established to maintain competitive balance, preventing large-market owners from outspending smaller franchises to monopolize talent. Leonard officially signed a four-year, $176 million contract with the Clippers in 2021, followed by a three-year, $153 million extension in 2024. These contracts impact the team’s salary cap.
If the Clippers coordinated with an external entity to provide Leonard an additional $28 million, it could be viewed as an unauthorized bonus—potentially providing Los Angeles an unfair advantage in securing his services.
The league has a history of imposing strict penalties for violations. For instance, in 2000, the Minnesota Timberwolves lost five first-round draft picks and faced millions in fines after the NBA uncovered clandestine salary agreements with Joe Smith. Should the Clippers be found guilty of similar circumvention, they could face:
- Team fines of up to $7.5 million
- Loss of draft picks
- Voiding of Leonard’s contract
- Potential suspensions or fines for executives and team staff
Kawhi Leonard’s Camp Under Scrutiny
Leonard’s uncle and long-time advisor, Dennis Robertson, is designated as the representative in the Aspiration endorsement contract. Robertson has a prior history with the league office: during Leonard’s free agency in 2019, rival teams accused him of requesting forbidden advantages, including ownership stakes, a private jet, and guaranteed endorsement income. The NBA investigated these allegations and found no wrongdoing.
Leonard has yet to comment on the recent allegations, and messages sent to his business partners have not been responded to.
What Happens Next
The NBA has stated that it is “commencing an investigation,” highlighting that salary cap circumvention is among the league’s most severe violations. With bankruptcy filings and contracts already documented, this case carries significant weight compared to past speculations.
For Steve Ballmer—the wealthiest owner in sports, with a net worth exceeding $120 billion—the financial risk is minor. However, the potential reputational harm and competitive consequences could be substantial should the league impose penalties.
For Kawhi Leonard, the pivotal question is whether a $28 million “endorsement” lacking tangible promotional efforts will be categorized as a business misstep or serve as incriminating evidence in one of the NBA’s most significant salary cap controversies since the Joe Smith affair.
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