Jan 5, 2026; Inglewood, California, USA; LA Clippers forward Kawhi Leonard is introduced before the game against the Golden State Warriors at the Intuit Dome. After nearly a year of investigating the Los Angeles Clippers, the NBA has found no evidence that owner Steve Ballmer funneled money through team sponsors to pay Kawhi Leonard as a way to get around the salary cap, according to an ESPN report published Monday. The report, from Don Van Natta Jr., Baxter Holmes and Ramona Shelburne, cited three people with knowledge of recent discussions between the league and the team.
NEWS with @DVNJr, @ramonashelburne and @ShamsCharania: The NBA has found no evidence showing LA Clippers owner Steve Ballmer funneled money through team sponsors to pay Kawhi Leonard in order to circumvent the salary cap, sources tell ESPN. https://t.co/zmuTzWdAPd — Baxter Holmes (@Baxter) August 17, 2026
At the heart of the investigation was Leonard's four-year, $28 million endorsement deal with Aspiration, a now-bankrupt green banking company that was once a Clippers sponsor and that was previously reported to be a "no-show" arrangement designed to pay Leonard outside his NBA contract. Investigators spent months going through internal emails, text messages and financial records, and the probe grew beyond Aspiration to include at least three other companies that also had deals with the team, including Daktronics and Boingo Wireless. Despite all of that, ESPN's sources say the league has not been able to connect Ballmer to any effort to compensate Leonard through those sponsors. The NBA Fires Back The report had barely gone live before the NBA pushed back. League spokesman Mike Bass posted a statement to X that took direct aim at ESPN's findings. "ESPN's article regarding the LA Clippers investigation — for which the NBA declined to cooperate — contains numerous and significant inaccuracies," Bass wrote. "The results in this matter will be made clear once the investigation is concluded."
NBA Chief Communications Officer Mike Bass issued the following statement: pic.twitter.com/iEBGJd51fv — NBA Communications (@NBAPR) August 17, 2026
Bass did not say which parts of the report were wrong or whether investigators had uncovered something ESPN missed, but the message was clear: the case is still open. According to ESPN, the league's focus has now shifted to two narrower questions: whether the Clippers broke cap circumvention rules by introducing Leonard to team sponsors in the first place, and whether the team failed to properly supervise its employees. The Clippers have insisted throughout the process that connecting players with business partners is common practice across the league and that Leonard's representatives handled all endorsement talks on their own. Ballmer has denied any wrongdoing and has said he would take the case to arbitration rather than accept a finding of intentional salary cap circumvention. What It Means for the Pending Trade All of this has a direct effect on the trade that would send Leonard to the Toronto Raptors, which was agreed to on June 30 but has been sitting in limbo while Toronto weighs the risks tied to the investigation's outcome. Leonard averaged 27.9 points, 6.4 rebounds and 3.6 assists per game for the Clippers in 2025-26 and earned both an All-Star selection and Second Team All-NBA honors.
The Clippers have released a statement surrounding the new ESPN report this morning 👇 “Our commercial relationships stood on their own merits.” pic.twitter.com/M20OsSN03q — Grant "Money" Mona (@Gmona48) August 17, 2026
But with Leonard limited to 65 games and James Harden playing just 44 while averaging 25.4 points and 8.1 assists, the Clippers finished 42-40 and ninth in the Western Conference, missing the playoffs entirely. Commissioner Adam Silver said in July that he hopes to wrap up the investigation before the 2026-27 season tips off, though arbitration could push that timeline further. Until the league releases its official findings, the Clippers, the Raptors and Leonard are all left waiting without any real answers.