Report: NBA finds no evidence Ballmer funneled money to Kawhi Leonard

NBA Disputing Reports on Clippers' Salary Cap Investigation

The NBA has formally disputed an ESPN report regarding its ongoing investigation into the Los Angeles Clippers and potential salary-cap circumvention. The league stated on Monday, August 18th, that the ESPN article contained numerous and significant inaccuracies and noted that the NBA had declined to cooperate with that specific report. The league added that final results will be made clear once the investigation is concluded.

The ESPN report, authored by Don Van Natta Jr., Baxter Holmes, and Ramona Shelburne, claimed that the NBA found no evidence that Clippers owner Steve Ballmer funneled money to Kawhi Leonard through team sponsors to bypass salary cap rules. According to three people with knowledge of recent discussions, the league's focus has instead shifted to whether the Clippers' introduction of Leonard to team sponsors violated rules prohibiting cap circumvention.

The investigation, which has lasted 11 months and involved the firm Wachtell, Lipton, Rosen & Katz, began last September. It originally centered on a $28 million endorsement deal Leonard signed with Aspiration, an environmental company that is now bankrupt. Sources say Leonard performed no public marketing work for Aspiration. The scope later expanded to include at least three other companies with business ties to the Clippers, including Daktronics, the manufacturer of the Intuit Dome's video screen.

Internal emails obtained by Pablo Torre suggest the Clippers' marketing team repeatedly pressed Daktronics in 2021 to schedule activations and autograph sessions with Leonard to legitimize his partnership with the company. This contradicts claims by Ballmer that Leonard's sponsorship with Aspiration was independent of the team.

The Clippers have denied any wrongdoing. In a statement, the team asserted they did not funnel money to Leonard, arrange for third-party compensation on his behalf, or provide undisclosed payments outside his NBA contract. The team maintains it simply introduced players to existing business partners, a practice they describe as common in the NBA.

Steve Ballmer has repeatedly denied the allegations, claiming he was a victim of fraud after investing $60 million into Aspiration. Joe Sanberg, a co-founder of Aspiration, was sentenced earlier this year to 14 years in prison after pleading guilty to federal fraud charges.

Despite the reported lack of evidence regarding direct money funneling, the NBA is still examining if the Clippers are guilty of failure to supervise employees. It remains unclear what specific rules may have been violated or what the resulting penalties would be. Ballmer has told confidants he will not accept a result asserting the team intended to circumvent the cap and has indicated he is prepared to take the matter to arbitration.

The legal and league limbo has stalled several personnel moves:

• The Toronto Trade: A trade to send Leonard back to the Toronto Raptors has been agreed to, but remains unfinalized. The Raptors reportedly balked at signing an agreement to accept any potential consequences stemming from the investigation.
• Roster Purgatory: The delay has left Leonard, Gradey Dick, and Brandon Ingram in a state of uncertainty.
• Other Markets: The Clippers' pursuit of Peyton Watson in a potential sign-and-trade may be on hold pending the investigation's conclusion.

Leonard, 35, believes the investigation will conclude before training camp. He is expected to rejoin the Raptors and negotiate a multiyear extension. NBA Commissioner Adam Silver expressed hope last month that results would be available by the end of the summer and must be finalized before the 2026-27 season begins.