NBA and Clippers discuss findings of salary-cap probe involving Kawhi Leonard
The NBA’s investigation into whether the Los Angeles Clippers used sponsor payments to bypass the salary cap for Kawhi Leonard has entered a discussion phase, with both sides reviewing preliminary findings but no agreement reached.
The NBA’s inquiry into possible salary-cap violations by the Los Angeles Clippers has moved to a discussion stage between the league and the team, according to sources familiar with the matter. The probe, conducted by New York law firm Wachtell Lipton Rosen & Katz, has not found evidence that owner Steve Ballmer directed sponsor money to Leonard beyond his contract, but the league said ESPN’s reporting on the case contained “numerous and significant inaccuracies.”
“The results in this matter will be made clear once the investigation is concluded,” the NBA statement read.
The Clippers reiterated that introducing players to corporate partners is a routine practice and that Leonard and his representatives negotiated any endorsement agreements independently. The team said it did not negotiate terms, dictate payments, or provide undisclosed compensation to the player.
“The fact that a player has an endorsement relationship with a company that also does business with his team is not evidence of salary-cap circumvention,” the Clippers said.
The investigation now focuses on whether the Clippers’ introductions to sponsors such as Aspiration and Daktronics complied with league rules. Earlier reports suggested Leonard received a $28 million endorsement from Aspiration, a firm that later filed for bankruptcy, and a separate multi-million-dollar deal from Daktronics, though no work was performed for the latter.
Ballmer is also named in a civil lawsuit alleging fraud related to Aspiration, now renamed Catona Climate, but the lawsuit is separate from the NBA’s salary-cap inquiry. Leonard was traded to the Toronto Raptors on June 30, but the trade was paused pending the investigation’s outcome, with the NBA indicating any sanctions would transfer to the Raptors. Commissioner Adam Silver has urged a resolution before the season starts in October.
The salary cap limits team payroll to promote competitive balance, and the league has characterized attempts to evade it as a serious violation.