NBA's Conclusion About Kawhi Leonard Circumvention Could Create A Slippery Slope

Aug 18, 2026 05:00 PM - 1 hour ago 2

Eleven months aft Pablo Torre of Meadowlark Media first reported connected an alleged "no-show" sponsorship woody betwixt then-Los Angeles Clippers guardant Kawhi Leonard and a now-bankrupt biology startup company, the NBA's investigation appears to beryllium nearing its conclusion.

On Monday, ESPN's Don Van Natta Jr., Baxter Holmes and Ramona Shelburne reported that the NBA has "found nary grounds showing LA Clippers proprietor Steve Ballmer funneled money done squad sponsors to salary Kawhi Leonard successful bid to circumvent the net cap, according to 3 group pinch knowledge of discussions betwixt the 2 sides successful caller days. Instead, the NBA is focused connected whether the team's preamble of Leonard to squad sponsors constitutes a usurpation of the league's rules prohibiting salary-cap circumvention, 2 of the sources said.

"The convention is examining whether the Clippers are blameworthy of 'failure to supervise' employees, though it's unclear what circumstantial norm the squad would person violated aliases what the penalties would be," Van Natta, Holmes and Shelburne added.

After ESPN published that report, the Clippers released a statement confirming that they introduced Leonard to "companies pinch which we had business relationships," which they described arsenic "both an mean believe by NBA teams and a communal petition of players and representatives." They added that a subordinate having "an endorsement narration pinch a institution that besides does business pinch his squad is not grounds of salary-cap circumvention."

Granted, that’s downplaying the severity of what Torre has reported. And if the NBA lets the Clippers disconnected easy, it could unfastened a Pandora’s container erstwhile it comes to under-the-table deals betwixt prima players and squad sponsors.

The Clippers' Alleged Transgressions

According to Torre's Pulitzer Prize-winning reporting, Clippers politician Steve Ballmer invested $50 million into the biology startup Aspiration, which past signed Leonard to a $28 cardinal endorsement woody that was ne'er made nationalist and ne'er required him to do anything. Earlier this month, Torre revealed that Leonard had different undisclosed sponsorship woody pinch the institution that designed the Jumbotron for the Clippers' Intuit Dome.

"One of the high-level sources acquainted pinch the narration betwixt the Clippers and Daktronics, who was nether statement for the Clippers’ Intuit Dome task for years, goes connected portion pinch america to say, 'It was 1,000% a measurement to circumvent the net cap,’" Torre added.

The NBA’s collective bargaining agreement prohibits teams from entering "into an statement aliases knowing pinch immoderate sponsor aliases business partner aliases 3rd statement nether which specified sponsor, business partner aliases 3rd statement pays aliases agrees to salary compensation for hoops services (even if specified compensation is ostensibly designated arsenic being for non-basketball services) to a subordinate nether statement pinch the team.

"Such an statement pinch a sponsor aliases business partner aliases 3rd statement whitethorn beryllium inferred where: (i) specified compensation from the sponsor aliases business partner aliases 3rd statement is substantially successful excess of the fair-market worth of immoderate services to beryllium rendered by the subordinate for specified sponsor business partner aliases 3rd party; and (ii) the compensation successful the subordinate statement betwixt the subordinate and the squad is substantially beneath the fair-market worth of specified contract."

Back successful January 2024, Leonard signed a three-year, $149.5 cardinal statement hold pinch the Clippers that was astir $10 cardinal little than he was eligible to receive. Leonard signed his $28 cardinal woody pinch Aspiration successful April 2022, according to Torre.

The CBA besides prohibits immoderate squad aliases "team affiliate" from reaching an statement "involving compensation aliases information of immoderate benignant aliases thing other of value." A squad connection is "any individual aliases entity who aliases which holds an ownership liking successful a team" aliases immoderate entity which a squad proprietor "holds (directly aliases indirectly) much than 5% of its ownership interests, aliases participates successful aliases influences its guidance aliases operations."

During an question and reply pinch Shelburne successful September 2025 aft Torre reported connected the first cap-circumvention allegations, Ballmer specifically noted that he had "no control" complete Aspiration and "owned little than 3% of the company." That unsocial should norm retired the second type of circumvention, which carries pinch it steeper penalties.

Even if the Clippers are recovered blameworthy of the first type of circumvention, the CBA says NBA commissioner Adam Silver tin enforce a good of nary much than $5.5 million, portion the Clippers of 1 first-round draught prime and void Leonard's contract. If they were recovered blameworthy of the "team affiliate" shape of circumvention, Silver could portion the Clippers of aggregate draught picks and suspend immoderate squad executives who were "found to person willfully prosecute successful specified violation" for up to 1 year.

The NBA's Slippery Slope

The Clippers, Leonard and the National Basketball Players Association each person the powerfulness nether the CBA to entreaty immoderate reward handed down by Silver, which would beryllium heard by an independent arbitrator. According to Van Natta, Holmes and Shelburne, "Ballmer has insisted many times successful conversations pinch confidants that he will not judge a convention consequence that asserts he aliases the squad intended to circumvent the net headdress and would alternatively bring the matter to arbitration."

The NBPA would besides push backmost connected the conception "that a sponsor preamble counts arsenic salary-cap circumvention," 2 sources told Van Natta, Holmes and Shelburne. One convention insider "with nonstop knowledge of convention business" went arsenic acold arsenic to telephone that "an outrageous overreach."

"The personification besides said that if the convention punishes the Clippers for introducing a subordinate to a steam sponsor, it 'will beryllium felt crossed the league—and players and their guidance won't guidelines for it.'"

Again, it's worthy stressing present that Torre didn't conscionable uncover immoderate run-of-the-mill endorsement contracts betwixt Leonard and companies that were besides affiliated pinch the Clippers. His woody pinch Aspiration was by acold the company's astir expensive, according to Torre's reporting, moreover though location is nary nationalist grounds of Leonard doing a azygous endorsement for the company.

If the NBA allows Leonard and the Clippers to get disconnected comparatively scot-free, it could beryllium unfastened play connected teams arranging endorsement deals betwixt sponsors and players acold exceeding the fair-market worth of the services they provide.

Granted, there’s nary guarantee that the Clippers will get disconnected scot-free. NBA spokesperson Mike Bass said successful a statement that ESPN's article "contains galore and important inaccuracies" and "the results successful this matter will beryllium made clear erstwhile the investigation is concluded."

The remainder of the convention will beryllium watching this saga closely, and not conscionable because it's presently holding up the Clippers' waste and acquisition of Leonard backmost to the Toronto Raptors.

"I’ve spoken to aggregate squad strategists, for example, who told me, pinch chests puffed, that if the Clippers aren't docked aggregate first-round picks — if Leonard's statement isn't voided while his net obligations stay connected the Clippers' books — they will consciousness emboldened to activity retired their ain type of ammunition companies to provided further compensation to their players," Jake Fischer of The Stein Line wrote successful September 2025.

With the second-apron era wreaking havoc connected costly rosters and forcing teams into making financially driven decisions, getting prima players to work together to below-market contracts is simply a godsend. If teams are emboldened by the results of the Clippers investigation to statesman arranging akin deals pinch their ain stars, it could upend the integrity of the NBA's full salary-cap system.

Unless different noted, each stats via NBA.com, PBPStats, Cleaning the Glass aliases Basketball Reference. All net accusation via Spotrac and salary-cap accusation via RealGM. All likelihood via FanDuel Sportsbook.

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