The NBA handed down sweeping penalties to Clippers owner Steve Ballmer, team executives, the team and star Kawhi Leonard following an investigation into allegations the group circumvented the league’s Collective Bargaining Agreement.
The Clippers said in a statement that they “vehemently reject the NBA’s findings” and vowed to challenge them. Leonard issued a statement saying he had no direct knowledge of the rule violations.
The findings announced Wednesday, the result of a nearly yearlong investigation conducted by Wachtell Lipton Rosen & Katz, a high-powered New York law firm, determined the Clippers broke NBA rules by initiating off-court income opportunities between Leonard and four companies doing business with the team: Aspiration Partners, Boingo Wireless, Daktronics and Lockton Insurance.
The firm’s report stated that the Clippers facilitated endorsement agreements between the companies and Leonard, induced the companies to enter into the agreements by offering them business from the team, paid personal expenses on behalf of Leonard and his representatives and failed to report improper solicitations for off-court income made on Leonard’s behalf by Dennis Robertson, his then-business manager.
The investigation found Leonard received $66 million in endorsement pay from four companies facilitated by Ballmer and Clippers executives at the behest of the star’s then-manager. Ballmer invested $60 million in Aspiration and three other companies received $22 million from the Clippers in consulting fees.
As a result, the NBA issued the following sanctions:
- The Clippers are forfeiting first-round draft picks, one apiece in the 2029, 2030, 2031, 2032 and 2033 NBA drafts.
- The Clippers are fined $30 million.
- Ballmer is suspended from all league and team activities for one year for “knowingly seeking to help Leonard obtain off-court income opportunities, for approving a business deal that he knew was a precondition for Aspiration to enter into an endorsement agreement with Mr. Leonard, and for his failure to create conditions under which his organization abided by the NBA’s circumvention rules.”
- Clippers president of business operations Gillian Zucker is suspended without pay for one year for “being primarily and directly culpable for the impermissible endorsement arrangements and for providing false and misleading statements to investigators.”
- Clippers president of basketball operations Lawrence Frank is suspended without pay for six months for “his involvement with the impermissible endorsement arrangements and for approving impermissible expenses incurred by Mr. Leonard and his family.”
- The Clippers organization and personnel are subject to a compliance and monitoring program overseen by the league office for five years.
- Leonard is required to pay the league $700,000.
- Dennis Robertson, Leonard’s uncle and previous business manager, is banned from conducting business or otherwise engaging with NBA teams and their affiliates on behalf of or with respect to any player, employee or other league or team personnel for a period of five years.
The Clippers said in a statement they cooperated fully with the investigation and will fight “to demonstrate our innocence.”
“The NBA’s findings … are the result of a heavily biased investigation seeking to justify a predetermined narrative rather than facts and evidence,” the team statement read. “What the league told us privately differs from what it announced today publicly, and they have not held themselves close to the standard Commissioner [Adam] Silver set at the start of this investigation to ensure it’s fairness and accuracy.”
”… We intend to vigorously challenge these findings and penalties through every avenue available to us and look forward to an ethical and impartial arbitration process.”
The Clippers most likely will have to take their claims to court. A league source not authorized to discuss the sanctions publicly said there is not an arbitration or appeal process available for the team to pursue. Arbitration is reserved for players and the National Basketball Players Association declined to pursue use of it in this case.
The Clippers released a letter sent to Silver arguing Ballmer spent nearly $50 million funding the investigation and cooperated in every way possible.
“Mr. Ballmer’s reputation has been irreparably damaged as he now finds himself embroiled not only in this heavily biased investigation, but in civil litigation, the Aspiration bankruptcy proceeding, and more,” the letter stated. “It seems increasingly likely that Mr. Ballmer will spend years defending himself and the team against a podcaster’s baseless claims.”
Leonard issued a statement denying knowledge of the salary cap violations without contesting the league’s findings.
“I accept full responsibility for lapses in judgment by people within my inner circle and regret the distraction this situation has caused the fans and my family,” Leonard’s statement read. “I entered into my contract with the Clippers as well as the agreements in question in good faith, fully committed to fulfilling my obligations and with no knowledge of any intent on anyone’s part to circumvent the salary cap.
“For 15 years, my priority has been giving everything to my family, the game, and those I share the court with. As I return to Toronto, I am focused on what I can control, closing this chapter, and moving forward with a clean slate.”
It remains unclear whether Leonard’s trade to Toronto, which was put on hold until the NBA investigation was completed, will be finalized.
The probe was triggered when the “Pablo Torre Finds Out” podcast aired an episode Sept. 3, 2025, detailing the contract Leonard received from Aspiration, a self-described “socially-conscious and sustainable banking services and investment products” firm.
The deal with Leonard came to light in Aspiration’s bankruptcy documents. Joseph Sanberg, co-founder of the company, pleaded guilty in October to federal charges of conspiring to bilk investors out of $248 million and on June 1 was sentenced to 14 years in federal prison.
One of the primary investors in Aspiration was Ballmer, the former longtime CEO of Microsoft whose estimated net worth is $139 billion. He has owned the Clippers since 2014.
Ballmer invested $50 million in Aspiration in September 2021. A month later, the Clippers announced a $300-million sponsorship deal with the company. Ballmer nearly granted Aspiration naming rights to the team’s new $2-billion arena, but instead chose financial services firm Intuit.
Two years later when Aspiration was experiencing severe financial difficulties, Ballmer invested an additional $10 million and Clippers co-owner Dennis Wong — Ballmer’s former college roommate — invested $1.99 million in Aspiration nine days before Leonard received a $1.75 million payment from the company. Leonard was paid $21 million of the $28 million agreed upon in his contract with Aspiration.
Leonard was traded to the Toronto Raptors on June 30 for Brandon Ingram, Gradey Dick and a slew of draft picks, but the deal was put on hold pending the outcome of the investigation. Leonard led the Raptors to the NBA championship in 2019.
Leonard would not talk about the allegations during the 2025-26 NBA season because the investigation was ongoing and brushed it off during media day in September 2025.
“None of us did … wrongdoing and, yeah, that’s it,” he said. “We invite the investigation.”
Asked if he performed any endorsement work for Aspiration, Leonard said, “I understand the full contract and services that I had to do. Like I said, I don’t deal with conspiracies or the click-bait analysts or journalism that’s going on.”
Players are allowed to have endorsement and business deals, but at issue was whether the Clippers participated in arranging the side deal beyond simply introducing Aspiration executives to Leonard. Doing so would be a violation of Article 13 of the NBA collective bargaining agreement.
ESPN reported Aug. 17 that NBA investigators had met with Ballmer and other Clippers officials in an attempt to agree to findings before the case went to arbitration. Although ESPN wrote that three sources told reporters the NBA found no evidence showing Ballmer funneled money through team sponsors to pay Leonard to circumvent the salary cap, the NBA immediately pushed back, releasing a statement that read “ESPN’s article regarding the L.A. Clippers investigation — for which the NBA declined to cooperate — contains numerous and significant inaccuracies. The results in this matter will be made clear once the investigation is concluded.”
In his only public comments since the salary cap circumvention accusations first surfaced, Ballmer told ESPN in September 2025 that he was “conned” by Sanberg and Aspiration. He also said he knew nothing of the endorsement deal between the company and Leonard.
“We were done with Kawhi, we were done with Aspiration,” Ballmer said. “The deals were all locked and loaded. Then, they 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.”
Ballmer cannot wipe his hands clean of Aspiration yet. He was added as a defendant in a civil lawsuit against Sanberg and others associated with Aspiration — renamed Catona Climate in 2025 just before the bankruptcy filing — brought by 11 investors in the company. Ballmer and other defendants are accused of fraud and aiding and abetting fraud, with the plaintiffs seeking at least $50 million in damages.