The Los Angeles Clippers face fresh controversy as Kawhi Leonard's $28 million endorsement deal with the now-bankrupt tree-planting firm Aspiration is being linked to possible salary cap violations.

While the team and owner Steve Ballmer have strongly denied the claims, the NBA has confirmed it is launching an investigation.

Clippers React to Allegations

Clippers Deny Salary Cap Violation Amid Kawhi Leonard Endorsement Deal Clippers Deny Salary Cap Violation Amid Kawhi Leonard Endorsement Deal
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In a statement that was released to the Los Angeles Times, the Clippers categorically denied allegations of impropriety.

"Neither Mr. Ballmer nor the Clippers circumvented the salary cap or engaged in any misconduct related to Aspiration. Any contrary assertion is provably false: The team ended its relationship with Aspiration years ago, during the 2022-23 season, when Aspiration defaulted on its obligations.

Neither the Clippers nor Mr. Ballmer was aware of any improper activity by Aspiration or its co-founder until after the government instituted its investigation. The team and Mr. Ballmer stand ready to assist law enforcement in any way they can."

The controversy arises from Leonard's $28 million endorsement contract with Aspiration. ESPN's Pablo Torre reported Leonard was compensated even though he did no meaningful promotional work for the firm. Some former employees indicated Leonard "didn't have to do anything" with the agreement, leaving some to wonder if the deal was utilized to siphon funds beyond his customary NBA contract.

Aspiration, which went bankrupt in March 2025, still owed Leonard's firm, KL2 Aspire LLC, $7 million when it imploded. Records examined by Torre indicated Leonard would receive $7 million for four years from 2022, but there has been no evidence of substantial work linked to the agreement emerging.

NBA Launched an Immediate Investigation

NBA spokesman Mike Bass announced that the league has initiated an official inquiry into the issue. If the Clippers are determined to have committed cap manipulation, the consequences could be severe.

The league has a history of severely penalizing teams for infractions. In 2000, the Minnesota Timberwolves forfeited five first-round picks and were fined $3.5 million after an illegal contract deal with forward Joe Smith. Although recent tampering incidents have most commonly ended with second-round pick forfeitures, analysts feel the Clippers may have to pay a greater penalty if guilt is established.

Possible Turning Point for the Clippers

For Leonard, who joined the Los Angeles Clippers in 2019 after guiding the Toronto Raptors to an NBA title, the situation is something that would affect the Los Angeles team for quite some time. The franchise star has signed several extensions with the team, so the legality of external financial deals is particularly key to the integrity of the league.

Leonard was also controversial in his load management issue. Because of load management by some players, the NBA cracked down on a new policy to combat this unhealthy practice.