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Baxter Holmes
A number of Authors
Six months have handed since allegations first arose that the LA Clippers circumvented the NBA’s salary cap to pay star Kawhi Leonard, prompting the league to investigate.
Ultimately week’s board of governors assembly, NBA commissioner Adam Silver didn’t tackle, and was not requested about, the investigation. However final month at All-Star weekend — hosted by the Clippers — Silver mentioned the investigation has been “enormously complex.”
Here is what we all know — and do not know — concerning the allegations and the place the investigation stands:
What are the small print of the investigation, and what is the newest?
The investigation, led by the regulation agency Wachtell, Lipton, Rosen & Katz, started in September 2025 and facilities on allegations that Clippers proprietor Steve Ballmer and the workforce orchestrated a $28 million endorsement deal between Leonard and Aspiration, a now-bankrupt green banking company by which Ballmer had invested, to bypass the league’s wage cap.
The NBA investigation adopted a collection of studies by Pablo Torre, a podcaster and ESPN contributor, who cited inside paperwork that confirmed Ballmer invested $50 million in Aspiration by way of his private LLC in September 2021. That month, the Clippers additionally signed a $300 million deal with Aspiration, making the corporate the “first founding companion” of the Intuit Dome.
Six months later, Aspiration signed its take care of Leonard. An unnamed worker who purportedly labored for the banking firm informed Torre that Leonard’s sponsorship deal “was to bypass the wage cap.”
Whereas Ballmer mentioned he launched Leonard to Aspiration, he told ESPN’s Ramona Shelburne in September 2025 he had no data of the deal and denied he directed the corporate to strike one.
A number of sources with data of the investigation mentioned that interviews are ongoing.
These sources say that the workforce from Wachtell Lipton, led by legal professional David Anders — who has led different league investigations — is interviewing Clippers officers and different key figures, together with former Aspiration staff with data of the corporate’s sponsorship take care of Leonard.
It is unclear if Leonard has but been interviewed — or if anybody near him has, both.
“Wachtell’s investigation is ongoing,” mentioned an NBA spokesperson. “There may be extra work to be carried out and no set timeline.”
It is common for investigations to take many months. In 2021, the league requested Wachtell Lipton to conduct an investigation into the Phoenix Suns and then-owner Robert Sarver following a November 2021 ESPN story detailing allegations of racism and misogyny throughout Sarver’s 17 years as proprietor.
Anders additionally led that investigation, and Wachtell Lipton interviewed 320 folks and reviewed greater than 80,000 pages of emails, textual content messages and different paperwork.
The findings from that investigation weren’t introduced till September 2022 — 10 months after the investigation was first launched.
Silver addressed the complexity of the Clippers investigation at All-Star Weekend: “You could have an organization in chapter. You could have 1000’s of paperwork, a number of witnesses which were wanted to be interviewed.”
He additionally mentioned, “From every little thing I have been informed, the Clippers have been totally cooperative.”
What occurs after Wachtell Lipton brings its findings again to the league workplace?
Because it pertains to potential wage cap circumvention, and relying on the findings, Silver just isn’t solely accountable for deciding whether or not the Clippers can be punished, per the phrases of the NBA’s collective bargaining settlement.
Slightly, Wachtell Lipton will current its findings to the league workplace, and Silver will resolve whether or not to convey the agency’s findings to a impartial arbitrator appointed by the NBA and the Nationwide Basketball Gamers Affiliation.
The arbitrator would then look at what Silver introduced forth and resolve the following step. The arbitrator may both grant Silver the authority to punish the Clippers or resolve that there is not sufficient proof to benefit any self-discipline and deny him the power to levy penalties towards the workforce.
“The burden is on the league if we will self-discipline a workforce, an proprietor, a participant or any constituent members of the league,” Silver informed reporters following the league’s board of governors conferences in Midtown Manhattan in mid-September 2025. “I believe as with all course of that requires a basic sense of equity, the burden needs to be on the occasion that’s, in essence, bringing these prices.”
How have these concerned within the investigation responded to the allegations?
The allegations and subsequent investigation have solid a cloud over the Clippers franchise, however the workforce’s management hasn’t wavered from its preliminary public denials.
In September 2025, following Torre’s report, Ballmer appeared on ESPN to disclaim he had data of the endorsement contract the perimeters finally signed, or that he directed the corporate to take action. Ballmer additionally mentioned in his interview that he would welcome an investigation.
Later that very same month, Clippers president of basketball operations Lawrence Frank made comparable remarks on the Clippers’ media day.
“We’re glad there’s an investigation, and we welcome it,” Frank mentioned. “We respect that there will be a clear-eyed take a look at these allegations, and we’re looking forward to the reality to come back out. The assumptions and conclusions which were made are disappointing and upsetting, and we anticipate the investigation will present that these allegations are flawed.”
Leonard additionally addressed the matter during media day in September 2025.
He dismissed the allegations, including, “The NBA goes to do their job. None of us did [any] wrongdoing. That is it. We invite the investigations. It is not going to be a distraction for me or the remainder of the workforce.”
“The Clippers proceed to cooperate with the league’s investigation and stay up for a decision of this matter,” the Clippers informed ESPN in an announcement this week.
In a September 2025 statement posted to X, Aspiration co-founder and former CEO Andrei Cherny additionally denied the allegations of wage cap circumvention, saying Leonard’s contract had “three pages of intensive obligations,” and that he signed the contract following “quite a few inside conversations concerning the numerous issues Aspiration was planning on doing with Leonard.”
However in response to Cherny’s assertion, three former Aspiration executives who reported to him launched an announcement of their very own, which was obtained by Torre.
That assertion was from Rojeh Avanesian, Aspiration’s former chief monetary officer; Mike Shuckerow, Aspiration’s former chief working officer; and Eric Anderson, Aspiration’s former chief know-how officer.
The executives mentioned they did not agree with the corporate’s determination to signal the Leonard deal.
“The workforce expressed issues on the time concerning the excessive price of the association and its lack of alignment with Aspiration’s model and enterprise technique,” they mentioned within the assertion. “Whereas subsequent advertising efforts had been undertaken, they had been in the end discontinued and shouldn’t be interpreted as help for the deal itself.”
They continued, “In our judgement, the Leonard Deal was not within the firm’s finest curiosity. It was strategically tough to justify then, and it stays so at the moment.”
Cherny declined to remark for this story.
Additionally on account of Torre’s reporting, Ballmer has been named in a lawsuit filed by 11 former Aspiration buyers who say they had been defrauded out of tens of millions by co-founder Joseph Sanberg and others on the firm. Ballmer was added to the lawsuit, initially filed in July 2025, in November 2025, with buyers alleging he participated within the fraud by funneling cash to Leonard.
A listening to for the go well with is scheduled for April 22 at Los Angeles County Superior Courtroom in downtown Los Angeles. Ballmer’s attorneys have requested the courtroom to find out that the buyers did not allege information adequate sufficient to state a authorized declare, and for the case to be dismissed.
What will we find out about how Leonard’s contract with Aspiration took place?
Ballmer informed ESPN final yr that “[Aspiration] did request to be launched to Kawhi, and beneath the foundations, we are able to introduce our sponsors to our athletes. We simply cannot be concerned. We made an introduction. That was in early November [2021].”
Aspiration, which was based in 2013 and drew backers together with Robert Downey Jr., Orlando Bloom, and Leonardo DiCaprio, had introduced in August 2021 that it supposed to go public by way of a merger with a special-purpose acquisition firm (SPAC), a deal that will’ve valued the corporate at $2.3 billion and infused greater than $400 million in money.
However by 2022, Shuckerow, Aspiration’s former chief working officer who says he’s not a whistleblower to any authorities company about Aspiration, informed ESPN that spending had develop into an issue on the firm.
He mentioned Aspiration had made costly investments in carbon initiatives in Brazil and elsewhere, employed in nonrevenue areas and accrued bills tied to sponsorship offers, together with model offers with the Clippers, Athletes Limitless and the Boston Red Sox.
Shuckerow mentioned that preserving among the firm’s main investor relationships took on higher significance — together with with Ballmer, one of many 15 wealthiest folks on the planet — which he mentioned Sanberg conveyed to the members of the manager workforce.
Shuckerow mentioned the entities that Ballmer oversaw — together with the Clippers and the Intuit Dome — had develop into important to Sanberg and Cherny not just for Ballmer’s continued funding however for the credibility that Aspiration wanted in its pursuit of going public.
“It was made clear to the company facet of the home that the Ballmer ecosystem was a precedence,” Shuckerow mentioned.
One other high-level former Aspiration government informed ESPN that Sanberg additionally informed colleagues the Clippers had been trying to increase Leonard’s public profile, which may result in extra endorsements for him. That government additionally mentioned Sanberg mentioned the deal may result in extra enterprise between Aspiration and the Clippers. The manager mentioned there was by no means any point out of the wage cap or makes an attempt to bypass it, and that they by no means heard Sanberg’s sentiment from Clippers officers.
A supply near the Clippers with data of the investigation mentioned, “As is obvious from (Sanberg’s) responsible plea, this determined admitted felon would say something whereas struggling to maintain his firm afloat.”
Sanberg’s legal professional did not return a request in search of remark.
Shuckerow additionally mentioned that some firm executives expressed opposition on the preliminary measurement of Leonard’s deal — $28 million, plus $20 million in fairness in money. (In a single textual content message trade between Aspiration executives, reviewed by ESPN, one government described calling a “Hail Mary” to contact Sanberg concerning the deal whereas noting that it “seemingly will not do something.”)
Shuckerow mentioned that, in response to the opposition, Sanberg informed different executives that he’d give Leonard $20 million of his private fairness within the firm. The deal was signed in April 2022. Of their joint assertion, the three former executives mentioned the deal “was offered to the corporate as a accomplished association and executed by Mr. Cherny regardless of important objections from members of this senior administration workforce.”
It didn’t replicate any technique beforehand communicated to us, nor was it reviewed by way of Aspiration’s Funding Committee course of.”
In a single e mail trade from June 2022 that was obtained by ESPN, an Aspiration advertising official mentioned there have been “some fairly large flags” within the settlement. (The Wall Road Journal first reported about the emails in October.)
“Particularly, we needs to be getting method a couple of 8-hr. manufacturing day for the worth that we’re paying,” the official wrote. “Second, Kawhi’s lack of social media accounts will considerably hamper our skill to ship significant media worth on this marketing campaign. As at the moment written, Aspiration might want to make an enormous funding in paid media for this content material to get any visibility.”
In hindsight, the high-level Aspiration government who spoke to ESPN mentioned that the method “may’ve been dealt with higher.”
What does Leonard’s contract with Aspiration truly say?
ESPN obtained a 19-page contract between Leonard and Aspiration, signed in April 2022, which particulars a number of pages of obligations for Leonard. Amongst them had been commitments together with autograph signings, neighborhood service occasions, promotional and public appearances and an annual eight-hour day of filming.
Aspiration had the proper to terminate the contract if Leonard now not performed for the Clippers. The contract additionally features a so-called “beliefs” clause, which stipulates that Leonard “might decline to proceed with any motion desired by the Firm beneath Part 3.2 if Leonard believes that such proposed actions usually are not constant together with his beliefs.”
The beliefs clause turned a spotlight of each Torre’s reporting and different commentary concerning the Clippers-Aspiration allegations.
It is unclear if Leonard or the Clippers had another contracts or agreements with Aspiration.
What do league insiders consider Leonard’s contract?
ESPN confirmed 5 participant brokers who do not symbolize Leonard language in Leonard’s endorsement contract pertaining to obligations and termination clauses. ESPN additionally confirmed the identical language to an NBPA supply who’s aware of such contracts.
Mentioned one agent, “That is commonplace. Nothing uncommon right here.”
Mentioned one other, “There’s nothing in there that jumps out to me. Every part is fairly commonplace.”
A 3rd agent made comparable feedback.
Two further brokers singled out the “beliefs” clause, with one saying, “I’ve by no means seen a participant have the proper to say no to do one thing resulting from ‘beliefs.’ A great lawyer would have not less than mentioned bonafide ‘non secular’ beliefs.”
One other, the fifth agent, made an identical comment, including that it may symbolize an “wonderful negotiation and/or an inexperienced lawyer on behalf of Aspiration.”
The NBPA supply informed ESPN that “there may be nothing in that contract that’s inconsistent with the common course of enterprise. The one factor that stands out is that language that claims ‘constant together with his beliefs, which is simply too broad and too obscure. And that’s actually only a query of fine negotiation. If a lawyer mentioned, ‘Look, we need to have this language as broad as doable as a result of we will not sit right here at the moment and envision all of the promotional actions chances are you’ll be asking Kawhi to do,’ and if the lawyer for Aspiration is silly sufficient to say, OK, we’ll enable that,’ then that is simply good negotiation by Kawhi’s workforce. However there’s nothing on the face of that contract that means that this was all orchestrated.”
The NBPA supply then mentioned that whereas the language within the “beliefs” provision is actually favorable to Leonard, the supply additionally identified that Aspiration wasn’t a well-managed firm and that it in the end went bankrupt.
The 5 brokers individually echoed the NBPA supply’s level that whereas elements of the contract could also be favorable to Leonard, there seems to be nothing within the deal itself that means that Leonard’s deal was orchestrated in such a method as to bypass the NBA’s wage cap.
In his September 2025 publish on X, Cherny defended the “beliefs” clause. “The ‘beliefs’ provision just isn’t uncommon in celeb endorsements and merely means we will not do one thing like make a vegetarian eat meat as a method of forcing them to interrupt the contract,” he wrote in his September publish. “It does not imply you possibly can have a ‘perception’ of not speaking to a digicam.”
Did Leonard fulfill any of these obligations?
In the summertime of 2022, Selection reported that Aspiration partnered with Artistic Artists Company to “present sustainability providers, carbon discount providers and customer-centric local weather impression options to company, sports activities and leisure trade manufacturers.”
The company helped develop an inventory of potential concepts for Leonard to be concerned with Aspiration, which they despatched to the corporate that summer time, after Leonard had signed the deal, in keeping with an e mail obtained by ESPN.
“To launch Aspiration’s new partnership with Kawhi Leonard, the workforce has developed preliminary ideas for a way the 2 can companion for max impression of his service days and to amplify the partnership in a novel method that drives the matters Aspiration cares about,” the e-mail said.
One concerned partnering with the musician Drake, one other Aspiration companion; one other targeted on tracing Leonard’s carbon footprint; one other imagined Leonard working with native colleges for efforts involving environmental sustainability.
The high-level Aspiration government informed ESPN that firm advertising officers mentioned numerous obligations with Leonard’s camp within the fall of 2022, together with neighborhood actions and media/filming.
Shuckerow mentioned he alerted the advertising workers in 2022 that the corporate had unused belongings within the Leonard deal and advised they not less than goal the “low-hanging fruit” equivalent to autographed memorabilia. Shuckerow mentioned he wasn’t certain if advertising workers or any Aspiration officers contacted the Clippers or Leonard about such efforts.
A supply with data of Leonard’s schedule mentioned that Leonard’s camp was in talks with Aspiration about executing some obligations, together with neighborhood appearances, including that nothing was set in stone as a result of the 2 sides had been working round each Leonard’s schedule — particularly as he continued to rehab his surgically repaired proper knee — and the Clippers’ schedule.
On the similar time, change was additionally occurring inside the firm. In October 2022, Aspiration parted methods with Cherny, and Olivia Albrecht turned its new CEO.
Leonard returned from damage in December 2022. That very same month, Aspiration laid off roughly 100 staff.
Additionally in December 2022, in keeping with Torre’s reporting, Clippers restricted companion Dennis J. Wong invested $1.99 million in Aspiration, 9 days earlier than the corporate made an overdue $1.75 million cost to Leonard.
Finally, Leonard did not seem in any of the mentioned advertising activations for the corporate.
“I’ve no purpose to consider that Kawhi would not have carried out one thing if we requested,” Shuckerow mentioned. “I do not know if we ever received to the stage the place one thing received far sufficient within the technique stage the place we truly requested him for a concrete ask.”
In March 2023, Ballmer invested a further $10 million in Aspiration in a funding spherical that included earlier firm buyers, The Athletic reported final yr, in what one supply with data of Ballmer’s intentions referred to as a present of fine religion in each Albrecht and the corporate’s new path.
Had been there any public hyperlinks between Leonard and Aspiration?
The high-level Aspiration government who spoke to ESPN mentioned the corporate mentioned an Aspiration-themed Leonard bobblehead that the Clippers would launch throughout the 2022-23 season.
A supply with data of the deal mentioned the merchandise was a part of the Clippers’ take care of Aspiration, and never Leonard’s.
Whereas the bobblehead was in manufacturing in late 2022, Aspiration officers contacted the Clippers and requested that the corporate’s title be taken off the bobblehead as a result of it was a plastic merchandise, which ran counter to Aspiration’s climate-focused mission, the supply mentioned.
The Aspiration title was subsequently faraway from the bobbleheads’ packaging and all promotional materials, however as a result of the bobbleheads had already been produced, the Aspiration title could not be faraway from the bobbleheads themselves, the supply mentioned.
The bobblehead was launched, as deliberate, to the primary 10,000 followers on the Clippers-Thunder sport in late March 2023, at Crypto.com Enviornment in Los Angeles.
“Bobblehead manufacturing follows a constant timeline every season, which begins in late summer time. The bobbleheads are generally tied to sponsorship agreements, and within the 2022-23 season, included companions equivalent to Cedars-Sinai, Kia and AT&T,” the Clippers informed ESPN. “The Kawhi bobblehead was dealt with in the identical method, a part of a sponsorship activation that included Aspiration, just like others gamers’ bobbleheads that yr.”
What occurred with Aspiration?
A supply with data of the matter informed ESPN that the Clippers terminated their settlement with Aspiration in Might 2023 as a result of the corporate breached its contract with the workforce by defaulting on funds.
The Clippers continued posting a collection of pleased birthday messages to their gamers and workers on social media that referenced the corporate in 2023. The posts had been a part of a social media schedule for that season, in keeping with the supply with data of the matter. The ultimate such publish on X got here on June 29, 2023, when the Clippers posted a cheerful birthday for Leonard and referenced Aspiration within the caption.
Later that summer time, in August 2023, the corporate that was going to take Aspiration public introduced that it terminated the deal. In January 2024, Bloomberg Information reported that Aspiration was the topic of a Division of Justice and Commodity Futures Buying and selling Fee investigation into whether or not the corporate misled clients.
Aspiration filed for chapter in March 2025, with a reported debt of $170 million. In chapter filings, the corporate mentioned it owed the Clippers $30 million, essentially the most of its collectors, and that it owed $7 million to a restricted legal responsibility firm owned by Leonard.
At media day, Leonard was requested if he was nonetheless owed that determine. “I received to look again on the books,” he mentioned, “however nah, it was greater than that.”
In August 2025, Sanberg formally pled responsible to 2 counts of wire fraud. Federal prosecutors mentioned he defrauded buyers and lenders of greater than $248 million.
He’s scheduled to be sentenced on April 27 in federal courtroom in Los Angeles.
