NBA opens investigation into reported Kawhi Leonard endorsement deal

The NBA is now officially involved.

Spokesman Mike Bass said the league has launched an investigation into reports that the Clippers used a $28 million Kawhi Leonard endorsement deal with a now-defunct tree-planting company to skirt the salary cap, as first reported by Shams Charania of ESPN.

The Clippers, meanwhile, issued a firm denial. In a statement to The Los Angeles Times, the team said neither owner Steve Ballmer nor the organization “circumvented the salary cap or engaged in any misconduct related to Aspiration.”

The team added that it cut ties with the company during the 2022-23 season when Aspiration defaulted on its obligations, and insisted Ballmer and the Clippers were unaware of any wrongdoing until after federal authorities opened their probe.

This comes on the heels of Aspiration co-founder Joseph Sanberg pleading guilty last month to two counts of wire fraud in a $248 million scheme to defraud lenders and investors.

The story gained traction on Wednesday when Pablo Torre reported on his podcast that Leonard performed no work for Aspiration despite being owed $7 million through a marketing agreement.

A former employee told Torre that Leonard “didn’t have to do anything,” raising questions about whether the deal was simply a vehicle to funnel extra compensation.

If the league finds evidence of cap circumvention, it could trigger heavy penalties. And history shows how far the league can go. In 2000, then-commissioner David Stern hammered the Timberwolves for a secret side deal with Joe Smith, voiding his contract, stripping five first-round picks and fining the team $3.5 million.

Adam Silver hasn’t shown the same appetite for nuclear punishments, often settling recent tampering cases with the loss of a second-round pick. But if Leonard’s contract with Aspiration is deemed an under-the-table cap work-around, expect something far stiffer than that.