Updates on the NBA’s inquiry regarding the LA Clippers

It has been six months since the initial claims surfaced that the LA Clippers may have bypassed the NBA’s salary cap to compensate star Kawhi Leonard, leading to a league investigation.

During last week’s board of governors meeting, NBA commissioner Adam Silver did not discuss, nor was he questioned about, the ongoing investigation. However, at last month’s All-Star weekend, which the Clippers hosted, Silver remarked that the investigation is “enormously complex.”

Here’s what is known — and what remains unclear — regarding the allegations and the current status of the investigation:

What are the specifics of the investigation, and what is the current status?

The inquiry, conducted by the law firm Wachtell, Lipton, Rosen & Katz, commenced in September 2025 and focuses on allegations that Clippers owner Steve Ballmer and the organization facilitated a $28 million endorsement agreement between Leonard and Aspiration, a now-defunct green banking firm in which Ballmer had invested, to evade the league’s salary cap.

The NBA’s investigation was prompted by a series of reports from Pablo Torre, a podcaster and ESPN contributor, who referenced internal documents indicating that Ballmer invested $50 million in Aspiration through his personal LLC in September 2021. That same month, the Clippers entered into a $300 million agreement with Aspiration, designating the company as the “first founding partner” of the Intuit Dome.

Six months later, Aspiration finalized its agreement with Leonard. An unnamed employee who allegedly worked for the banking firm informed Torre that Leonard’s sponsorship arrangement “was to circumvent the salary cap.”

While Ballmer stated he introduced Leonard to Aspiration, he told ESPN’s Ramona Shelburne in September 2025 that he was unaware of the deal and denied directing the company to establish one.

Multiple sources familiar with the investigation indicated that interviews are still in progress.

These sources noted that the Wachtell Lipton team, led by attorney David Anders — who has overseen other league investigations — is interviewing Clippers officials and other significant individuals, including former Aspiration employees knowledgeable about the sponsorship agreement with Leonard.

It remains uncertain whether Leonard has been interviewed — or if anyone in his circle has been questioned.

The NBA did not respond to a request for comment.

It is not uncommon for investigations to extend over several months. In 2021, the league commissioned Wachtell Lipton to investigate the Phoenix Suns and then-owner Robert Sarver following a November 2021 ESPN report detailing allegations of racism and misogyny during Sarver’s 17-year tenure as owner.

Anders also led that investigation, during which Wachtell Lipton interviewed 320 individuals and reviewed over 80,000 pages of emails, text messages, and other documents.

The results of that investigation were not disclosed until September 2022 — 10 months after it began.

Silver acknowledged the intricacy of the Clippers investigation at All-Star Weekend: “You have a company in bankruptcy. You have thousands of documents, multiple witnesses that have needed to be interviewed.”

He also stated, “From everything I’ve been told, the Clippers have been fully cooperative.”

What occurs after Wachtell Lipton submits its findings to the league office?

Regarding potential salary cap circumvention, and based on the findings, Silver is not solely accountable for determining whether the Clippers will face penalties, according to the NBA’s collective bargaining agreement.

Instead, Wachtell Lipton will present its findings to the league office, and Silver will decide whether to submit the firm’s findings to a neutral arbitrator appointed by the NBA and the National Basketball Players Association.

The arbitrator would then review what Silver presented and determine the next course of action. The arbitrator could either grant Silver the authority to sanction the Clippers or conclude that there is insufficient evidence to justify any disciplinary action and deny him the ability to impose penalties on the team.

“The burden is on the league if we’re going to discipline a team, an owner, a player, or any constituent members of the league,” Silver told reporters following the league’s board of governors meetings in Midtown Manhattan in mid-September 2025. “I think as with any process that requires a fundamental sense of fairness, the burden should be on the party that is, in essence, bringing those charges.”

How have those involved in the investigation reacted to the allegations?

The allegations and subsequent investigation have created uncertainty for the Clippers franchise, yet the team’s leadership has remained steadfast in its initial public denials.

In September 2025, following Torre’s report, Ballmer appeared on ESPN to assert that he was unaware of the endorsement contract that was ultimately signed, nor did he instruct the company to pursue it. Ballmer also expressed his willingness for an investigation during the interview.

Later that month, Clippers president of basketball operations Lawrence Frank echoed similar sentiments at the Clippers’ media day.

“We are glad there’s an investigation, and we welcome it,” Frank stated. “We appreciate that there’ll be a clear-eyed look at these allegations, and we’re eager for the truth to emerge. The assumptions and conclusions that have been drawn are disappointing and upsetting, and we expect the investigation will demonstrate that these allegations are unfounded.”

Leonard also addressed the issue during media day in September 2025.

He dismissed the allegations, stating, “The NBA is going to do their job. None of us did [any] wrongdoing. That’s it. We invite the investigations. It’s not going to be a distraction for me or the rest of the team.”

“The Clippers continue to cooperate with the league’s investigation and look forward to a resolution of this matter,” the Clippers stated in a recent communication to ESPN.

In a September 2025 statement posted to X, Aspiration co-founder and former CEO Andrei Cherny also refuted the allegations of salary cap circumvention, asserting that Leonard’s contract included “three pages of extensive obligations,” and that he signed the contract following “numerous internal discussions about the various initiatives Aspiration was planning to undertake with Leonard.”

However, in response to Cherny’s statement, three former Aspiration executives who reported to him issued their own statement, which was obtained by Torre.

This statement was from Rojeh Avanesian, Aspiration’s former chief financial officer; Mike Shuckerow, Aspiration’s former chief operating officer; and Eric Anderson, Aspiration’s former chief technology officer.

The executives expressed their disagreement with the company’s decision to finalize the Leonard deal.

“The team expressed concerns at the time regarding the high cost of the arrangement and its lack of alignment with Aspiration’s brand and business strategy,” they stated in the release. “While subsequent marketing efforts were undertaken, they were ultimately discontinued and should not be interpreted as support for the deal itself.”

They continued, “In our judgment, the Leonard Deal was not in the company’s best interest. It was strategically difficult to justify then, and it remains so today.”

Cherny declined to comment for this story.

Additionally, as a result of Torre’s reporting, Ballmer has been named in a lawsuit filed by 11 former Aspiration investors who claim they were defrauded out of millions by co-founder Joseph Sanberg and others at the company. Ballmer was added to the lawsuit, initially filed in July 2025, in November 2025, with investors alleging he participated in the fraud by funneling money to Leonard.

A hearing for the suit is scheduled for April 22 at Los Angeles County Superior Court in downtown Los Angeles. Ballmer’s attorneys have requested the court to determine that the investors failed to present sufficient facts to establish a legal claim, and for the case to be dismissed.

What do we know about how Leonard’s contract with Aspiration was established?

Ballmer informed ESPN last year that “[Aspiration] did request to be introduced to Kawhi, and under the rules, we can introduce our sponsors to our athletes. We just can’t be involved. We made an introduction. That was in early November [2021].”

Aspiration, founded in 2013 and backed by investors including Robert Downey Jr., Orlando Bloom, and Leonardo DiCaprio, announced in August 2021 its intention to go public through a merger with a special-purpose acquisition company (SPAC), a deal that would have valued the company at $2.3 billion and provided over $400 million in cash.

However, by 2022, Shuckerow, Aspiration’s former chief operating officer who claims he is not a whistleblower to any government agency regarding Aspiration, told ESPN that the company faced challenges with spending.

He indicated that Aspiration had made costly investments in carbon projects in Brazil and elsewhere, hired in non-revenue areas, and incurred expenses related to sponsorship agreements, including brand deals with the Clippers, Athletes Unlimited, and the Boston Red Sox.

Shuckerow noted that maintaining some of the company’s major investor relationships became increasingly important — including with Ballmer, one of the 15 wealthiest individuals globally — which he stated Sanberg communicated to the executive team.

Shuckerow remarked that the entities overseen by Ballmer — including the Clippers and the Intuit Dome — had become vital to Sanberg and Cherny not only for Ballmer’s ongoing investment but also for the credibility Aspiration needed in its efforts to go public.

“It was made clear to the corporate side of the house that the Ballmer ecosystem was a priority,” Shuckerow said.

Another high-ranking former Aspiration executive told ESPN that Sanberg also informed colleagues that the Clippers were aiming to enhance Leonard’s public profile, which could result in additional endorsements for him. That executive also stated that Sanberg mentioned the deal could foster more business between Aspiration and the Clippers. The executive noted that there was never any discussion of the salary cap or attempts to bypass it, and that they never heard such sentiments from Clippers officials.

A source close to the Clippers with insight into the investigation stated, “As is evident from (Sanberg’s) guilty plea, this desperate admitted felon would say anything while struggling to keep his company afloat.”

Sanberg’s attorney did not respond to a request for comment.

Shuckerow also mentioned that some company executives voiced concerns regarding the initial size of Leonard’s deal — $28 million, plus $20 million in equity in cash. (In one text message exchange among Aspiration executives, reviewed by ESPN, one executive described reaching out to Sanberg about the deal as a “Hail Mary,” while noting that it “likely won’t do anything.”)

In response to the opposition, Sanberg informed other executives that he would provide Leonard with $20 million of his personal equity in the company. The deal was finalized in April 2022. In their joint statement, the three former executives asserted that the deal “was presented to the company as a completed arrangement and executed by Mr. Cherny despite significant objections from members of this senior management team.”

It did not reflect any strategy previously communicated to us, nor was it reviewed through Aspiration’s Investment Committee process.

In one email exchange from June 2022 obtained by ESPN, an Aspiration marketing official noted there were “some pretty big flags” in the agreement. (The Wall Street Journal first reported on the emails in October.)

“Specifically, we should be getting way more than one 8-hr. production day for the price that we are paying,” the official wrote. “Second, Kawhi’s lack of social media accounts will significantly hamper our ability to deliver meaningful media value on this campaign. As currently written, Aspiration will need to make a big investment in paid media for this content to gain any visibility.”

In retrospect, the high-level Aspiration executive who spoke to ESPN stated that the process “could’ve been handled better.”

What does Leonard’s contract with Aspiration actually entail?

ESPN acquired a 19-page contract between Leonard and Aspiration, signed in April 2022, which outlines several pages of obligations for Leonard. These include commitments such as autograph signings, community service events, promotional and public appearances, and an annual eight-hour day of filming.

Aspiration had the right to terminate the contract if Leonard ceased to play for the Clippers. The contract also contains a so-called “beliefs” clause, which stipulates that Leonard “may decline to proceed with any action desired by the Company under Section 3.2 if Leonard believes that such proposed actions are not consistent with his beliefs.”

The beliefs clause has been a focal point of both Torre’s reporting and other discussions regarding the Clippers-Aspiration allegations.

It remains unclear whether Leonard or the Clippers had any additional contracts or agreements with Aspiration.

What do league insiders think of Leonard’s contract?

ESPN presented five player agents who do not represent Leonard with language from Leonard’s endorsement contract concerning obligations and termination clauses. ESPN also shared the same language with an NBPA source familiar with such contracts.

One agent remarked, “This is standard. Nothing unusual here.”

Another stated, “There’s nothing in there that jumps out to me. Everything is pretty standard.”

A third agent echoed similar sentiments.

Two additional agents highlighted the “beliefs” clause, with one commenting, “I’ve never seen a player have the right to decline to do something due to ‘beliefs.’ A competent lawyer would have at least specified ‘bona fide religious beliefs.’

Another, the fifth agent, made a comparable observation, suggesting that it could indicate either an “excellent negotiation and/or an inexperienced lawyer on behalf of Aspiration.”

The NBPA source informed ESPN that “there is nothing in that contract that is inconsistent with the regular course of business. The only thing that stands out is that language that says ‘consistent with his beliefs,’ which is too broad and too vague. And that is really just a question of good negotiation. If a lawyer said, ‘Look, we want to have this language as broad as possible because we can’t sit here today and envision all the promotional activities you may be asking Kawhi to do,’ and if the lawyer for Aspiration is foolish enough to agree to that, then that’s just good negotiation by Kawhi’s team. But there’s nothing on the face of that contract that suggests that this was all orchestrated.”

The NBPA source then noted that while the language in the “beliefs” provision is certainly advantageous to Leonard, it is also important to recognize that Aspiration was not a well-managed company and ultimately went bankrupt.

The five agents separately echoed the NBPA source’s assertion that while certain aspects of the contract may be favorable to Leonard, there appears to be nothing in the agreement itself that indicates Leonard’s deal was arranged in a manner to circumvent the NBA’s salary cap.

In his September 2025 post on X, Cherny defended the “beliefs” clause. “The ‘beliefs’ provision is not unusual in celebrity endorsements and merely means we can’t do something like make a vegetarian eat meat as a way of forcing them to break the contract,” he wrote in his September post. “It doesn’t mean you can have a ‘belief’ of not talking to a camera.”

Did Leonard fulfill any of those obligations?

In the summer of 2022, Variety reported that Aspiration collaborated with Creative Artists Agency to “provide sustainability services, carbon reduction services, and customer-centric climate impact solutions to corporate, sports, and entertainment industry brands.”

The agency assisted in developing a list of potential initiatives for Leonard’s involvement with Aspiration, which they forwarded to the company that summer, after Leonard had signed the agreement, according to an email obtained by ESPN.

“To launch Aspiration’s new partnership with Kawhi Leonard, the team has developed initial concepts for how the two can collaborate for maximum impact of his service days and to amplify the partnership in a unique way that drives the topics Aspiration cares about,” the email stated.

One idea involved collaborating with musician Drake, another Aspiration partner; another focused on tracking Leonard’s carbon footprint; another envisioned Leonard working with local schools on environmental sustainability initiatives.

The high-level Aspiration executive informed ESPN that company marketing officials discussed various obligations with Leonard’s camp in the fall of 2022, including community activities and media/filming.

Shuckerow indicated that he alerted the marketing staff in 2022 that the company had unused assets in the Leonard deal and suggested they at least target the “low-hanging fruit” such as autographed memorabilia. Shuckerow expressed uncertainty about whether marketing staff or any Aspiration officials reached out to the Clippers or Leonard regarding such efforts.

A source familiar with Leonard’s schedule stated that Leonard’s camp was in discussions with Aspiration about fulfilling some obligations, including community appearances, noting that nothing was finalized as both sides were coordinating around Leonard’s schedule — particularly as he continued to recover from his surgically repaired right knee — and the Clippers’ schedule.

Simultaneously, changes were also taking place within the company. In October 2022, Aspiration parted ways with Cherny, and Olivia Albrecht became its new CEO.

Leonard returned from injury in December 2022. That same month, Aspiration laid off approximately 100 employees.

Also in December 2022, according to Torre’s reporting, Clippers limited partner Dennis J. Wong invested $1.99 million in Aspiration, nine days before the company made an overdue $1.75 million payment to Leonard.

Ultimately, Leonard did not participate in any of the proposed marketing initiatives for the company.

“I have no reason to believe that Kawhi wouldn’t have done something if we asked,” Shuckerow stated. “I don’t know if we ever reached the point where something progressed far enough in the strategy stage for us to actually request a concrete ask.”

In March 2023, Ballmer invested an additional $10 million in Aspiration during a funding round that included previous company investors, as reported by The Athletic last year, in what one source familiar with Ballmer’s intentions described as a show of good faith in both Albrecht and the company’s new direction.

Were there any public connections between Leonard and Aspiration?

The high-level Aspiration executive who spoke to ESPN indicated that the company considered an Aspiration-themed Leonard bobblehead that the Clippers would release during the 2022-23 season.

A source knowledgeable about the deal stated that