The NBA has launched an investigation into explosive allegations that the Los Angeles Clippers used a now-bankrupt fintech firm to funnel $28 million in secret funds to star ahead Kawhi Leonard.
If confirmed, the scheme would signify one of the audacious makes an attempt in league historical past to bypass the NBA’s wage cap — an offense that has drawn a number of the harshest punishments within the sport.
The Alleged $28 Million Deal
The controversy facilities on Aspiration Companions, a once-hyped environmental fintech model partly funded by Clippers proprietor Steve Ballmer. In line with chapter filings and contracts obtained by podcaster Pablo Torre, a subsidiary of the corporate, Aspiration QFZ, signed a four-year, $28 million endorsement take care of Leonard’s enterprise entity, KL2 Aspire LLC, in 2022.
The deal raised pink flags as a result of Torre and former staff of Aspiration couldn’t discover proof of Leonard really selling the corporate. No significant social media posts, appearances, or campaigns tied Leonard to Aspiration past a single Clippers group tweet tagging each the model and the participant. One former worker bluntly described the contract as a “no-show job.”
The chapter filings present the Clippers themselves are owed $30 million by Aspiration, whereas KL2 Aspire is owed $7 million. These parallel claims — from each the group and Leonard’s firm — triggered hypothesis that the “endorsement” could have been a car to route more money to the Clippers’ franchise participant.
Douglas P. DeFelice/Getty Photographs
The Clippers’ Denial
Each Ballmer and the Clippers issued sturdy denials, calling the accusations “flat-out improper.” In an announcement, the group stated:
“Neither the Clippers nor Steve Ballmer circumvented the wage cap. The notion that Steve invested in Aspiration to funnel cash to Kawhi Leonard is absurd. Steve invested as a result of Aspiration’s co-founders offered themselves as dedicated to doing proper by their clients whereas defending the atmosphere.“
The Clippers famous that Aspiration was a sponsor from 2021 by means of 2023, earlier than defaulting on its obligations. They confused that Leonard’s endorsement take care of the corporate was unbiased, and that neither Ballmer nor the group had oversight of it.
Ballmer, Aspiration, And The Collapse
Aspiration was as soon as valued within the tons of of hundreds of thousands and counted sports activities groups and celebrities amongst its companions. Ballmer-affiliated entities and Oaktree Capital invested $315 million within the firm in 2021.
However the firm unraveled in 2024–2025 amid an alleged large fraud scandal. Co-founder Joseph Sanberg was arrested and finally pleaded responsible to a $243 million scheme that defrauded traders. Aspiration filed for chapter in March 2025.
In these filings, each the Clippers and Leonard’s KL2 Aspire seem as collectors — elevating questions on whether or not Ballmer’s twin roles as proprietor and investor blurred monetary traces in ways in which might violate NBA guidelines.
Why Wage Cap Guidelines Matter
The NBA’s wage cap is designed to degree the taking part in subject, stopping big-market house owners from merely outspending rivals to hoard expertise. Leonard formally signed a four-year, $176 million deal with the Clippers in 2021, adopted by a three-year, $153 million extension in 2024. These contracts depend towards the group’s cap.
If the Clippers organized for an out of doors firm to pay Leonard an extra $28 million, it might represent an under-the-table bonus — one which gave Los Angeles an unfair edge in securing his companies.
The league has precedent for cracking down. In 2000, the Minnesota Timberwolves misplaced 5 first-round picks and have been fined hundreds of thousands after the NBA uncovered secret wage guarantees to Joe Smith. If the Clippers are discovered responsible of comparable “circumvention,” they might face:
- Staff fines of as much as $7.5 million
- Lack of draft picks
- Voiding of Leonard’s contract
- Suspensions or fines for executives and group personnel
Kawhi Leonard’s Camp Beneath Scrutiny
Leonard’s uncle and longtime advisor, Dennis Robertson, is listed because the designated consultant on the Aspiration endorsement contract. Robertson has a historical past with the league workplace: throughout Leonard’s 2019 free company, rival groups alleged he demanded impermissible perks corresponding to possession stakes, a non-public jet, and assured endorsement earnings. The NBA investigated these claims and located no violations.
Leonard himself has not commented on the newest allegations, and messages to his enterprise companions have gone unanswered.
What Occurs Subsequent
The NBA says it’s “commencing an investigation” and has made clear that wage cap circumvention is likely one of the league’s gravest offenses. With chapter filings and contracts already within the public document, this case carries extra weight than previous rumors.
For Steve Ballmer — the richest owner in sports with a fortune exceeding $120 billion — the monetary publicity is negligible. However the reputational injury and aggressive price could possibly be huge if the league arms down penalties.
For Kawhi Leonard, the query is whether or not a $28 million “endorsement” with little proof of precise work shall be seen as a enterprise misstep, or a smoking gun in one of many NBA’s largest wage cap scandals since Joe Smith.
