The National Basketball Association (NBA) is diving into a high-profile investigation following explosive allegations that Los Angeles Clippers star Kawhi Leonard received a $28 million payment from Aspiration, a now-bankrupt environmental company, in a deal potentially designed to circumvent the league’s strict salary cap rules. The controversy, detailed in a recent report by investigative journalist Pablo Torre, has thrust Clippers owner Steve Ballmer and the organization into the spotlight, raising questions about the integrity of NBA financial regulations.
The Alleged Deal and Its Origins
According to documents obtained by Torre and discussed on his 2025 podcast Pablo Torre Finds Out, Leonard signed an endorsement agreement with Aspiration between 2022 and 2025. The deal promised the All-Star forward $28 million in cash over four years, contingent on his tenure with the Clippers. However, a former Aspiration finance department employee, speaking anonymously alongside six other ex-colleagues, claimed the arrangement was a “no-show job” intended to skirt the NBA’s salary cap. The company, which focused on sustainability initiatives like tree planting, had received $50 million in funding from Ballmer, adding a layer of intrigue to the allegations.
The Clippers and Ballmer have denied any wrongdoing. In a statement to Torre, the organization asserted, “Neither Mr. Ballmer nor the Clippers circumvented the salary cap or engaged in any misconduct related to Aspiration.” The team further argued that the endorsement deal with Leonard was above board and aligned with NBA guidelines, which allow players to secure legitimate sponsorships.
Aspiration’s Fraudulent Past
The credibility of the allegations gained traction with the 2025 legal troubles of Aspiration’s co-founder, Joe Sanberg. In late August, the Justice Department announced that Sanberg pleaded guilty to two counts of wire fraud, admitting to falsifying revenue, cash reserves, and assets to deceive investors and lenders out of $248 million. Court documents revealed that Aspiration filed for Chapter 11 bankruptcy in March 2025, and Sanberg’s actions included fabricating financial statements, including a letter claiming $250 million in available cash when the company held less than $1 million.
This fraudulent backdrop has fueled speculation that Leonard’s deal may have been part of a broader scheme. The NBA, aware of Torre’s report, confirmed on Wednesday that it has launched an investigation into the matter, a move that could have significant implications for the league’s financial oversight.
NBA’s Investigative Challenge
The league’s probe comes at a time when salary cap circumvention remains a contentious issue. Historical data indicates that only about 5% of similar investigations since 2000 have resulted in penalties, suggesting a high bar for proving misconduct. The NBA will likely scrutinize whether Leonard’s endorsement provided tangible value to Aspiration or served as a veiled salary supplement, a violation of collective bargaining agreement rules. The Clippers’ defense hinges on the legitimacy of the sponsorship, while critics point to Aspiration’s collapse and Sanberg’s guilty plea as evidence of impropriety.
Broader Implications
This scandal could reshape how the NBA enforces its financial regulations, particularly as teams seek creative ways to attract and retain talent in a competitive market. Leonard, who re-signed with the Clippers for $176 million in 2021 and extended his contract for $149.5 million in 2024, is a cornerstone of the franchise. Any findings of wrongdoing could lead to fines, lost draft picks, or even voided contracts, though such outcomes remain uncertain given the league’s historical leniency.
For now, the investigation casts a shadow over Ballmer’s ownership, despite his reputation as a transformative figure since purchasing the Clippers for $2 billion in 2014 following the Donald Sterling scandal. Ballmer’s investment in the Intuit Dome and his willingness to acquire superstar players have earned praise, but this controversy threatens to tarnish his legacy.
Looking Ahead
As the NBA digs deeper, all eyes will be on the league’s findings and any potential fallout. The Clippers, Leonard, and Ballmer await the results, while the broader basketball community debates the ethics of endorsement deals in professional sports. With Aspiration’s fraudulent activities now public and Sanberg facing up to 40 years in prison, the truth behind this $28 million deal may soon come to light—potentially redefining the boundaries of NBA financial playbooks.