NBA says it will investigate report Clippers broke salary cap rules with Kawhi Leonard deal

The NBA said Wednesday that it will investigate if a $28 million US endorsement contract between Kawhi Leonard and a California-based sustainability services company allowed the Los Angeles Clippers to circumvent league salary cap rules, following a report by journalist Pablo Torre.

The probe will focus on ties between Leonard, the Clippers and a company called Aspiration Fund Adviser, LLC, which filed for bankruptcy this year. It listed several creditors at that time, among them the Clippers (who were owed about $30 million) and a company called KL2 Aspire LLC that was owed $7 million.

Leonard is listed as the manager of that tree-planting company in California filings. KL is his initials, and 2 is his jersey number. Emails sent to his listed representatives seeking comment Wednesday were not immediately returned.

"We are aware of this morning's media report regarding the LA Clippers and are commencing an investigation," NBA spokesman Mike Bass said Wednesday.

The Clippers denied any league rules were broken. Clippers owner Steve Ballmer made a $50 million investment in Aspiration, and the company and the team announced a $300 million partnership in September 2021. That was about a month after Leonard signed a four-year, $176 million extension with the Clippers.

"Neither Mr. Ballmer nor the Clippers circumvented the salary cap or engaged in any misconduct related to Aspiration," the Clippers said in a statement released to several media outlets, including The Associated Press. "Any contrary assertion is provably false: The team ended its relationship with Aspiration years ago, during the 2022-23 season, when Aspiration defaulted on its obligations."

Aspiration's co-founder, Joseph Sanberg, agreed to plead guilty last