While the first few weeks of NBA free agency were filled with notable moves, there's no arguing that it's been a quiet offseason ever since. The main focus up until this point had been the ongoing free agency negotiations with the top restricted free agents on the market, as it appears to be holding up the rest of the free agency market.
However, on Wednesday morning, the NBA world was shocked after The Athletic's Pablo Torre dropped bombshell news that Los Angeles Clippers forward Kawhi Leonard received a 'no-show' endorsement deal that was linked to a company that Steve Ballmer invested $50 million in.
The LA Clippers reportedly are accused of circumventing the NBA's salary cap by paying $28 million to Kawhi Leonard for a "no-show job."@PabloTorre reported on his podcast Wednesday that the Clippers paid Leonard through a now-bankrupt company owned by Clippers owner Steve… pic.twitter.com/9CnxW14DWM
— ESPN (@espn) September 3, 2025
As implied in Torre's reporting, the move looks to have been done to pay Leonard through a separate entity and go around the NBA's salary cap rules. A bad look for Leonard and the Clippers, the news received another update that makes this situation look even worse.
Going back to 2019, coming off an NBA Finals victory with the Toronto Raptors, reality struck for the champions. In the 2018 offseason, the Raptors made a blockbuster trade to acquire Leonard, but the two-time Defensive Player of the Year only had one year remaining on his contract. It proved to be the biggest one season in Raptors history, but now free agency had arrived.
This story is fascinating. From what I know from sources - when Kawhi signed with the Clippers the Toronto owner Larry Tannebaum was beside himself because he believed he bent over backwards for Kawhi - including calling three sponsors to meet Kawhi's demand of an extra $15… https://t.co/VVTxvA14Lj
— John Gambadoro (@Gambo987) September 3, 2025
According to NBA insider John Gambadoro, who reported heavily on Kevin Durant's trade saga in Phoenix, Leonard allegedly made requests for $15 million in endorsement money as a way to sweeten the pot for the star forward to return to Toronto.
"This was brought to the attention of Adam Silver as a concern over the cheating going on in the league being out of control," Gambadoro wrote. "But no action was taken as it was thought Tannebaum didn't truly understand the rules - only a promise to get more serious about it in the future."
This story is WILD. There is a clause that says Kawhi Leonard only gets paid as long as he is still with the Clippers. Great work @pablofindsout. https://t.co/mUcRvn0YaI pic.twitter.com/k0dos0FpIP
— Kevin O'Connor (@KevinOConnor) September 3, 2025
It seemed as though returning to Toronto made a lot of sense for Leonard, given the structure of the team and just how dominant they were during the 2018-19 season. However, as shared in Torre's reporting, Leonard had a more lucrative $28 million endorsement deal in Los Angeles instead.
At the time, this news on Leonard is still fresh, and the NBA has yet to take any action on any potential punishments for the Clippers or for Leonard. With the Clippers in a position to be NBA Finals contenders next season, this news isn't a great look.
More must-reads:
Get the latest news and rumors, customized to your favorite sports and teams. Emailed daily. Always free!