Kawhi Leonard Accused of Receiving $48M in ‘No-Show Job’ From Clippers Owner Steve Ballmer in Salary Cap Scheme

The NBA has launched an investigation into the Los Angeles Clippers following allegations that owner Steve Ballmer orchestrated a complex scheme to pay star forward Kawhi Leonard $48 million through a now-bankrupt environmental company, potentially circumventing league salary cap rules.

The Aspiration Connection

The controversy centers on Leonard’s endorsement deals with Aspiration, a tree-planting and carbon offset company that filed for bankruptcy earlier this year. According to investigative reporting by Pablo Torre and the Boston Sports Journal, Leonard received not one but two separate compensation agreements totaling $48 million—far exceeding deals given to higher-profile celebrities like Leonardo DiCaprio and Robert Downey Jr.

The first deal, worth $28 million over four years, was structured as an endorsement contract between Aspiration and Leonard’s company, KL2 Aspire LLC. However, sources within Aspiration described it as a “no-show job” since Leonard never appeared in promotional materials or provided marketing services. A clause in the contract allowed Leonard to “decline to proceed with any action desired by the Company” while still receiving payment.

The second arrangement involved $20 million in company stock from Aspiration co-founder Joseph Sanberg’s personal holdings, bringing Leonard’s total potential compensation to $48 million.

Ballmer’s Investment Raises Questions

The timing and structure of Ballmer’s involvement have drawn scrutiny. The Clippers owner invested $50 million in Aspiration approximately three months before Leonard’s endorsement deal was finalized. Unusually, Ballmer paid $11 per share while other investors, including Oak Tree Capital Management, paid $10 per share—typically, major investors receive discounted rates rather than premiums.

Former Aspiration employees told investigators that company executives were not consulted about Leonard’s massive deal, and CEO Andrei Cherny bypassed normal approval processes. The company’s CFO, legal counsel, and marketing chief would have typically analyzed such arrangements, but sources indicate they would have objected to the deal had they been involved.

Previous Violations and Ongoing Concerns

This investigation comes against the backdrop of the Clippers’ previous salary cap violations. In 2015, Ballmer was fined $250,000 for offering DeAndre Jordan unauthorized endorsement opportunities through Lexus during free agency recruitment.

The 2019 pursuit of Leonard also drew NBA scrutiny when Leonard’s uncle and advisor, Dennis Robertson, allegedly made “lavish requests” including partial team ownership, private plane access, and guaranteed endorsement money. While the league found no evidence of wrongdoing then, the current investigation revisits similar concerns about improper benefits.

Industry Reaction and Analysis

NBA executives speaking anonymously to The Athletic emphasized the unusual nature of Leonard’s Aspiration deals. Multiple general managers stated they had never seen endorsement arrangements of this magnitude or structure, particularly for a player who provided no apparent services.

The investigation has also raised questions about Leonard’s subsequent contract decisions. Some executives wonder whether the alleged side payments explain why Leonard accepted a 2024 extension below maximum salary level, providing the Clippers additional roster flexibility they wouldn’t otherwise have enjoyed.

Legal and Financial Fallout

Aspiration’s bankruptcy has complicated the situation significantly. Leonard never received the promised stock compensation and remains owed portions of his original $28 million contract, with his LLC listed among creditors in the bankruptcy filing.

The company’s downfall stems from co-founder Sanberg’s guilty plea in a $248 million fraud case involving artificially inflated revenue to attract investors. While Sanberg alone faces criminal charges, the SEC has investigated CEO Cherny’s potential involvement without filing charges.

Clippers’ Defense

The Clippers have issued multiple statements denying wrongdoing, with their latest response acknowledging that “team sponsors doing endorsement deals with players on the same team” is normal practice. However, they have not addressed the suspicious elements of Leonard’s specific arrangements or Ballmer’s unusual investment terms.

The team maintains that Ballmer’s investment was legitimate, based on Aspiration’s environmental mission, and that neither he nor the organization had oversight of Leonard’s endorsement agreement. They’ve characterized the salary cap circumvention allegations as “provably false.”

Broader Implications

Commissioner Adam Silver has previously identified salary cap circumvention as a “cardinal sin” in the NBA, particularly given the league’s luxury tax system designed to level competitive balance. The investigation carries significant stakes for the Clippers, who could face severe penalties including draft pick forfeiture, substantial fines, or other disciplinary measures if violations are proven.

The case also highlights ongoing tensions between the NBA’s salary cap structure and wealthy owners’ attempts to gain competitive advantages. With Ballmer being the richest owner in professional sports, the investigation tests the league’s commitment to enforcing financial regulations regardless of an owner’s wealth or influence.

What’s Next

The NBA’s investigation timeline remains unclear, but the complexity of the financial arrangements and Aspiration’s bankruptcy proceedings could extend the process significantly. The league must determine whether Ballmer’s investment and Leonard’s compensation agreements constitute coordinated salary cap circumvention or merely coincidental business relationships.

For Leonard, who has dealt with injury issues limiting him to just 37 games last season, the investigation adds another layer of uncertainty to his tenure with the Clippers. The outcome could influence both his future with the team and the broader landscape of player-owner financial relationships across professional sports.