Serious Questions Raised Against LA Clippers And Steve Ballmer Over Allegations Of NBA Salary Cap Violations

The LA Clippers and their owner, Steve Ballmer, have been accused of allegedly circumventing the NBA salary cap at the center of these allegations is the payment of $28 million to star player Kawhi Leonard for a no-show job that was allegedly carried out through Ballmer’s now bankrupt company, Aspiration. The sensational revelation was made by podcaster and former ESPN contributor Pablo Torre in the latest episode of his podcast Pablo Torre Finds Out

Gist of the allegations

Torre, citing internal documents from Aspiration, claimed that Steve Ballmer invested $50 million in the company through his personal LLC on September 14, 2021. Shortly after, on September 27, 2021, the Clippers announced a $300 million partnership with Aspiration, which included sponsorship of the new arena and a patch on the team’s jerseys.

According to Torre, Leonard signed a four-year, $28 million endorsement deal with Aspiration through his LLC, KL2 Aspire, in April 2022. The deal came nine months after Leonard signed a four-year, $176.3 million contract with the Clippers, which was the maximum amount allowed under the NBA’s Collective Bargaining Agreement (CBA) at the time. The documents obtained by Torre mention a clause stating that if Leonard leaves the Clippers, the deal would be void. In addition, Leonard had the freedom to refuse to participate in any of Aspiration’s activities, yet payments would continue.

An unnamed employee, who reportedly worked for Aspiration, told Torre that the payment was made to “circumvent the salary cap.” This is a clear violation of NBA rules, which strictly prohibit such practices.

The Clippers and Ballmer respond

The Clippers have vehemently denied these allegations. In their statement, the team said, “Neither Steve Ballmer nor the Clippers violated the salary cap nor engaged in any improper activity related to Aspiration.” The team also claimed that they had ended their relationship with Aspiration during the 2022-23 season after the company failed to meet its obligations. The Clippers said that they and Ballmer were not aware of any improper activity until after the government began its investigation.

The Clippers said in another statement, “The notion that Steve invested in Aspiration to fund Kawhi Leonard is completely absurd.” He also added that it is normal practice for sponsors to enter into endorsement deals with players, and that the Clippers or Ballmer had no knowledge of Leonard’s independent deal with Aspiration.

NBA’s response

The NBA has taken these allegations seriously. League spokesman Mike Bass released a statement on Wednesday saying, “We are aware of this morning’s media report regarding the LA Clippers, and are initiating an investigation into the matter.” Under the NBA’s 2023 collective bargaining agreement, salary cap violations come with severe penalties, which can include fines of up to $7.5 million, forfeiture of draft picks, cancellation of player contracts, and suspensions of up to a year.

Aspiration’s collapse and fraud allegations

Aspiration, which is what this entire controversy is about, has filed for bankruptcy in March 2025. The company is currently under federal investigation, and its co-founder Joe Sanberg pleaded guilty to two counts of wire fraud in August 2025 for defrauding investors and lenders of $248 million. This investigation and Aspiration’s financial irregularities further complicate the matter.

Historical Context: The Timberwolves Case

This is not the first time allegations of salary cap violations have surfaced in the NBA. In the year 2000, the Minnesota Timberwolves were accused of entering into a secret agreement with Joe Smith, promising him huge payments in the future provided he signed a contract for a lesser amount. As a result, the NBA fined the Timberwolves $3.5 million, stripped them of five first-round draft picks, suspended coach Kevin McHale and owner Glen Taylor for one season, and voided Smith’s contract.

Controversial History of the Clippers

The Clippers have had a long history of controversies. In May 2019, the NBA fined then-coach Doc Rivers $50,000 for comparing Kawhi Leonard to Michael Jordan when Leonard was with the Toronto Raptors. In addition, the Clippers were investigated for allegations of improper requests (such as a share of team ownership, private planes, and guaranteed endorsement money) by him and his uncle Dennis Robertson during Leonard’s free agency in 2019. In November 2019, the Clippers were again fined $50,000 for Rivers’ “inconsiderate” comments on Leonard’s health.

In 2020, a man named Johnny Wilkes claimed he had helped acquire Leonard in exchange for a $2.5 million payment from Clippers consultant Jerry West. However, the suit was dismissed, and the NBA did not impose any fines.