The Clippers and Kawhi Leonard face serious NBA investigations into a supposed "no-show" endorsement scheme that could bring significant penalties to the franchise.

The controversy centers on a reported four-year, $28 million endorsement contract Leonard signed with Aspiration, an environmental startup partly funded by Clippers owner Steve Ballmer.

Allegedly, this deal allowed Leonard to receive substantial payments without performing any promotional work—effectively serving as extra compensation outside NBA salary cap rules. 

Confidential documents and insider testimony reveal that this arrangement was structured to keep Leonard’s salary lower while still financially benefiting him, raising questions about its legality under the NBA’s collective bargaining agreement. 

Clippers’ Response and NBA Investigation

The Clippers have denied wrongdoing, asserting that they severed ties with Aspiration prior to the allegations and that any endorsements Leonard secured independently were aboveboard. 

Owner Steve Ballmer has expressed feeling “conned” by Aspiration, condemning the company’s fraudulent behavior and maintaining that the Clippers followed league rules. Meanwhile, the NBA has launched a formal investigation headed by the prominent law firm Wachtell, Lipton, Rosen & Katz—the same firm that previously handled major NBA misconduct cases.

This signals the league is treating the matter with utmost seriousness and could impose significant sanctions if violations are confirmed.

Potential Penalties and Implications

If the Clippers are found guilty of salary cap circumvention, potential punishments include fines up to $7.5 million, forfeiture of draft picks, voiding of Leonard’s contract, and suspensions for team personnel involved.

Such penalties would have a profound impact on the Clippers’ future roster construction and on Leonard’s career status with the team. Adding to the scrutiny is the involvement of Aspiration, which defaulted on obligations and filed for bankruptcy—highlighting possible fraudulent activities behind the scenes.

The outcome of this investigation could reshape Clippers’ operations and set precedent for how the league deals with future salary cap abuses. 

The unfolding Kawhi Leonard saga remains a major storyline as NBA training camps approach, placing the Clippers in an uncertain position while the league seeks clarity on the complex financial arrangements in question.