The NBA found no evidence that Los Angeles Clippers owner Steve Ballmer paid Kawhi Leonard extra money through team sponsors to circumvent the salary cap, sources told ESPN's Don Van Natta Jr., Baxter Holmes, and Ramona Shelburne.
The league is now trying to determine whether the Clippers' introduction of Leonard to team sponsors violated the NBA's rules prohibiting salary-cap circumvention, Van Natta Jr., Holmes, and Shelburne report.
It's unclear which rule Los Angeles violated or what penalties it would face if found guilty of "failure to supervise" employees, according to Van Natta Jr., Holmes, and Shelburne.
The NBA's probe began in September 2025 over allegations that Leonard and the Clippers had a $28-million "no-show" endorsement deal with Aspiration, a now-defunct green banking company. The league also expanded its investigation to include at least three other companies that had deals with the franchise, Van Natta Jr., Holmes, and Shelburne report.
The NBA reportedly presented its initial investigation findings to the Clippers in late July, and the sides have recently been negotiating a resolution.
However, Ballmer won't accept a punishment that asserts he or the team intended to circumvent the salary cap and would instead bring the matter to arbitration, sources told Van Natta Jr., Holmes, and Shelburne.
The Clippers released a statement saying they "introduced players, including Kawhi Leonard, to companies with which we had business relationships. Making introductions between players and team partners is both an ordinary practice by NBA teams and a common request of players and representatives."
The Clippers on Kawhi Leonard pic.twitter.com/QVBeoxhkct
— Mark Medina (@MarkG_Medina) August 17, 2026
The NBA later criticized ESPN's report, with spokesman Mike Bass saying the article "contains numerous and significant inaccuracies."
"The results in this matter will be made clear once the investigation is concluded," he added.
Leonard's trade to the Toronto Raptors has been on hold until the NBA's investigation concludes. There's been no indication that the two-time Finals MVP will have his contract voided, Van Natta Jr., Holmes, and Shelburne report.
Both Leonard and the Raptors are apparently operating as if the trade will be completed.
Leonard averaged a career-high 27.9 points, 6.4 boards, 3.6 assists, and 1.9 steals across 65 appearances last season. The 35-year-old also earned his seventh All-Star selection and fourth All-NBA second-team nod.
