The NBA’s investigation into the Clippers has found no evidence that owner Steve Ballmer funneled money through team sponsors to pay Kawhi Leonard in violation of the salary cap, according to sources familiar with discussions between the league and the team, a significant development that shapes how the 11-month inquiry appears to be heading toward resolution.
Instead, the Clippers’ practice of introducing Leonard to team sponsors is now under scrutiny, with two sources the league is examining whether the organization is guilty of a failure to supervise employees. It remains unclear what specific rule the team would have violated or what penalties could follow.
The Clippers investigation has expanded beyond Leonard’s relationship with Aspiration, the now-defunct green banking company at the center of the original allegations, to at least three other companies including Daktronics and Boingo Wireless. Sources said the league has presented no evidence that Ballmer funneled money through any of those companies either.
The current state of negotiations
Wachtell, Lipton, Rosen and Katz presented initial findings to the Clippers in late July. Since then, both sides have been negotiating a potential resolution, described by one source as spirited at times. The talks are being conducted by attorney David Kelley for Ballmer and the Clippers, and NBA general counsel Rick Buchanan.
The NBA disputed the characterization of this reporting, saying it contained numerous and significant inaccuracies and that results would be made clear once the investigation is concluded. The Clippers said in a statement that introducing players to business partners is both ordinary practice and a common request from players and their representatives, that the team did not negotiate or dictate the terms of Leonard’s endorsement deals, and that a player having an endorsement relationship with a team sponsor is not evidence of salary cap circumvention.
What a sponsor-introduction violation would mean
Sources familiar with the players’ union’s thinking said an argument that a sponsor introduction constitutes salary cap circumvention would likely not survive arbitration, with one source calling it dead on arrival. A league insider called a Clippers penalty based on player introductions an outrageous overreach, noting that seeking sponsor introductions is standard agent and player practice, and that punishing the Clippers for it would be felt across the entire league.
Any finding of salary cap circumvention requires agreement among the NBA, the Clippers and the National Basketball Players Association before punishment can be imposed. If the sides cannot agree, the matter goes to arbitration. The NBA’s own materials complicate the league’s position. Documents obtained by ESPN show the NBA’s own 2024-25 team operations materials encouraged teams to facilitate introductions between players and sponsors. The 2021-22 operations manual prohibited recommending players as endorsement candidates but allowed providing sponsors with player contact information.
The Minnesota precedent and Ballmer’s position
Early in negotiations, league lawyers raised the 2000 Minnesota Timberwolves case as a template, a prosecution built on physical evidence of an illegal agreement that led to draft pick forfeiture and ownership suspension. Sources said the Clippers case lacks comparable direct evidence, which complicates a similar penalty.
Ballmer has made clear to confidants he will not accept a result asserting intentional salary cap circumvention and would take the matter to arbitration rather than concede that finding.
Leonard has maintained he had no involvement in salary cap circumvention. Potential consequences for him appear focused on restitution for possible improper benefits such as travel and lodging for his representative. His pending trade to the Toronto Raptors, announced June 30, remains on hold, but sources said both sides are operating as though it will eventually close.
Aspiration filed for bankruptcy in 2025. Co-founder Joseph Sanberg was sentenced in June to 14 years in federal prison for wire fraud involving $248 million in investor losses. Ballmer has said he was defrauded by Sanberg and lost his entire $60 million investment.
NBA Commissioner Adam Silver said in July he wanted a resolution before the start of the 2026-27 regular season.
