L.A. Clippers Under Fire: $28M “No-Show Job” for Kawhi Leonard to Circumvent Salary Cap

A bombshell report by ESPN’s investigative journalist has ignited fresh controversy in the NBA, alleging that the Los Angeles Clippers and team owner Steve Ballmer orchestrated a $28 million “no-show” endorsement deal to circumvent league salary cap rules. A two-time league champion and two-time MVP of the Finals, Kawhi Leonard, found himself in the middle of the controversy.

Podcaster and former ESPN contributor Pablo Torre has a long report that says the Los Angeles Clippers are trying to get around the NBA’s salary cap rules by giving superstar Kawhi Leonard $28 million in the form of a “no-show” endorsement deal with a company that’s now bankrupt and was partially funded by Clippers owner Steve Ballmer.

Key Allegations

Documents reviewed by Torre suggest that Leonard was contracted to receive $28 million from Aspiration—a sustainability company partially funded by Steve Ballmer—via his LLC, KL2 Aspire, over four years (2022–2025). The arrangement stipulated that payments continued provided Leonard remained with the Clippers. Notably, there’s no evidence of any endorsement activity, such as promotions or media appearances, by Leonard for the firm.

The deal appears structured specifically to keep Leonard’s on-paper salary lower while compensating him offbooks. A former Aspiration employee is quoted as stating bluntly: “It was to circumvent the salary cap.”

Aspiration filed for Chapter 11 (Chapter 11 of the Bankruptcy Code generally provides for reorganization, usually involving a corporation or partnership) in March 2025. Its co-founder, Joseph Sanberg, pleaded guilty in August to investor fraud. Bankruptcy filings reveal that Aspiration still owes $7 million to KL2 Aspire.

The Clippers organization strongly denies any wrongdoing: “Neither Mr. Ballmer nor the Clippers circumvented the salary cap or engaged in any misconduct related to Aspiration. Any contrary assertion is provably false.”

Possible Penalties

Should the NBA find the report accurate, the team could face penalties under the current Collective Bargaining Agreement (CBA), potentially including:

• A fine of up to $4.5 million
• Loss of a first-round draft pick (by the way, AJ Dybantsa, Darryn Peterson, and Cameron Boozer are the biggest favorites by top basketball betting sites having an NBA on offer to become the first pick of the 2026 NBA Draft)
• Voiding of any contracts tied to the violation

Broader Implications

This could be among the most significant salary cap circumvention scandals since the infamous Minnesota Timberwolves–Joe Smith case in 2000, where the team was heavily fined and stripped of multiple draft picks. For those who don’t know, the salary cap in the most popular basketball league in the world is the limit to the total amount of money that NBA teams are allowed to pay their players.

Observers warn that if sanctions mimic past precedents, the Clippers’ future competitiveness could be severely impacted—especially if draft picks are lost or key contracts are voided.

What This Means

The unfolding saga raises tough questions about the integrity of NBA contract management and the lengths to which franchises might go to retain star players. With an investigation expected, the Clippers’ organizational strategy—and possibly Leonard’s career trajectory—could hang in the balance.