SUGGESTED: Clippers’ Kawhi Leonard trade to Raptors stalled
SUGGESTED: Clippers’ Kawhi Leonard trade to Raptors stalled
The Brief
An investigation into whether the Los Angeles Clippers improperly compensated Kawhi Leonard to circumvent the NBA salary cap could extend into next year.
League sources state penalties will not be sought without sufficient evidence, while Leonard's potential trade to Toronto remains on hold pending the outcome.
Both Leonard and Clippers owner Steve Ballmer have denied any wrongdoing regarding the alleged $28 million endorsement deal with Aspiration Partners Inc.
An investigation into whether the Los Angeles Clippers paid Kawhi Leonard under the table to evade the league’s salary cap could go into next year, ESPN reported Wednesday.
What we know:
NBA Commissioner Adam Silver stated on July 14 at the NBA Summer League in Las Vegas that the investigation needed "to be wrapped up before the beginning of next season."
ESPN’s report stated its sources said the league would not seek penalties "without sufficient evidence."
The league has also placed a hold on Leonard’s trade to Toronto until the investigation is complete.
The other side:
Leonard and the Los Angeles Clippers have continuously denied any wrongdoing.
What we don't know:
It's unclear what this means for Leonard and the other players involved in the Clippers-Raptors trade. NBA training camp is set to begin in late September.
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The backstory:
The investigation began nearly 10 months ago after a report from Pablo Torre alleged Clippers owner Steve Ballmer attempted to evade the salary cap by having Leonard sign an alleged fraudulent $28 million endorsement deal with Aspiration Partners Inc.
The report alleged the two-time NBA Finals MVP signed the endorsement deal with no obligations to do any work, which was subsequently labeled a "no-show job." Ballmer invested $60 million into the company and has denied any wrongdoing.
The firm also once had a 23-year endorsement deal worth $300 million with the Clippers.
Aspiration filed for bankruptcy in March 2025. Earlier this year, Aspiration co-founder Joseph Sanberg was sentenced to 14 years in prison for what federal officials said was a $248 million scheme to defraud investors and lenders.
"This serial fraudster used his Cinderella-like background, impressive educational credentials, and virtue signaling skills to swindle investors and lenders out of hundreds of millions of dollars," First Assistant U.S. Attorney Bill Essayli of the Central District of California previously stated. "This criminal case serves as a warning: Anyone can get duped by a con man."