The NBA has found no evidence that Los Angeles Clippers owner Steve Ballmer funneled money through team sponsors to pay Kawhi Leonard as a means of circumventing the salary cap, according to three sources with knowledge of recent discussions between the league and the team that spoke with ESPN.
The NBA released the following statement in response to the ESPN article:
“ESPN’s article regarding the LA Clippers investigation – for which the NBA declined to cooperate – contains numerous and significant inaccuracies. The results in this matter will be made clear once the investigation is concluded,” wrote NBA spokesman Mike Bass.
The NBA is now examining whether the Clippers violated cap circumvention rules simply by introducing Leonard to team sponsors, according to two of the sources. Investigators are also considering whether the team failed to properly supervise its employees, though the specific rule potentially violated and possible penalties remain unclear.
The 11-month investigation, which began with Leonard’s endorsement deal with the now-defunct company Aspiration, has since expanded to include at least three additional companies with Clippers business ties. Sources said the league has presented no evidence that Ballmer personally directed money to Leonard through any of these arrangements.
Law firm Wachtell, Lipton, Rosen & Katz presented initial investigative findings to the Clippers in late July. Since then, attorneys representing both sides, David N. Kelley for Ballmer and the Clippers and Rick Buchanan for the league, have engaged in negotiations described by one source as “spirited.”
The Clippers issued a statement defending the practice of connecting players with team partners.
“Making introductions between players and team partners is both an ordinary practice by NBA teams and a common request of players and representatives,” the team said, adding that it did not negotiate or dictate terms of Leonard’s endorsement agreements.
The probe traces back to a September 2025 report alleging Ballmer invested $50 million in Aspiration around the same time the company signed a $300 million partnership with the Clippers. Aspiration later signed a $28 million endorsement deal with Leonard in 2022, which an anonymous source described in the original report as a “no-show” arrangement designed to circumvent the cap.
Ballmer has denied any wrongdoing and said he would pursue arbitration rather than accept a finding asserting intentional cap circumvention. The Clippers’ planned trade of Leonard to the Toronto Raptors, agreed to June 30, remains on hold as the Raptors weigh potential risk tied to the investigation’s outcome.
Adam Silver said in July he hopes to resolve the matter before the 2026-27 regular season begins, though the timeline remains uncertain if the case proceeds to arbitration.