Sources: NBA has no evidence Ballmer funneled money to Leonard via sponsors

The NBA has discovered no evidence exhibiting LA Clippers proprietor Steve Ballmer funneled money by way of group sponsors to pay Kawhi Leonard so as to circumvent the wage cap, in accordance to three folks with data of discussions between the 2 sides in current days.

Instead, the NBA is concentrated on whether or not the group’s introduction of Leonard to group sponsors constitutes a violation of the league’s guidelines prohibiting wage cap circumvention, two of the sources mentioned. The league is analyzing whether or not the Clippers are responsible of “failure to supervise” workers, although it is unclear what particular rule the group would have violated or what the penalties could be, two of the sources mentioned.

The 11-month investigation into wage cap circumvention allegations expanded past Leonard’s take care of Aspiration, the now-defunct inexperienced banking firm on the middle of the allegations, to a minimum of three different corporations that additionally had offers with the Clippers, two of the sources acquainted with the talks informed ESPN. However, sources mentioned, the league has introduced no evidence that Ballmer funneled money to Leonard.

The league introduced preliminary findings of its investigation, led by legislation agency Wachtell, Lipton, Rosen & Katz, to the Clippers in late July, in accordance to a number of folks acquainted with the matter. In current days, either side have been negotiating a decision to the investigation, the folks mentioned. Those talks — led by legal professional David N. Kelley of legislation agency O’Melveny & Myers for Ballmer and the Clippers, and NBA normal counsel Rick Buchanan — at occasions have been “spirited,” one supply mentioned.

A spokesperson for the NBA didn’t reply to a number of requests for remark.

A spokesperson for the Clippers declined to reply questions concerning the nature or content material of the NBA’s preliminary findings or the continued discussions. But in a press release offered to ESPN, the Clippers mentioned the group “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 assertion additionally mentioned the group didn’t “negotiate or dictate” the phrases of Leonard’s endorsement offers. “The fact that a player has an endorsement relationship with a company that also does business with his team is not evidence of salary-cap circumvention,” in accordance to the assertion.

The NBA’s investigation started after a September 2025 report from podcaster Pablo Torre that cited inside paperwork exhibiting Ballmer invested $50 million in Aspiration, by way of his private LLC in September 2021. That month, the Clippers additionally signed a $300 million take care of Aspiration, making the corporate the “first founding partner” of the Intuit Dome.

Then, in April 2022, Aspiration signed a $28 million endorsement take care of Leonard. An unnamed worker who purportedly labored for the banking firm informed Torre that Leonard’s sponsorship deal “was to circumvent the salary cap,” and the report characterised the contract as a “no-show” job. Ballmer made an extra $10 million funding in Aspiration on March 9, 2023.

The league’s investigation examined offers with corporations together with Daktronics and Boingo Wireless, a wi-fi supplier for the Intuit Dome, sources acquainted with the inquiry mentioned. Earlier this month, Torre reported that Leonard had a beforehand undisclosed sponsorship settlement allegedly price hundreds of thousands of {dollars} with Daktronics, the South Dakota-based firm that designed the Clippers’ videoboard contained in the Intuit Dome. But like Aspiration, there’s no evidence that Ballmer funneled money by way of these corporations, and within the current discussions, the league has targeted on these corporations solely within the context of the Clippers introducing them to Leonard and his representatives, sources mentioned.

A spokesperson for Boingo didn’t reply to a request for remark. A spokesperson for Daktronics has declined to touch upon something associated to Leonard or the Clippers.

Over the previous 11 months, the Clippers and Ballmer have maintained that they’d no involvement in Leonard’s take care of Aspiration and have denied allegations they broke league guidelines. The day after Torre’s report, Ballmer informed ESPN that Aspiration requested to be launched to Leonard, and that the group made the introduction in November 2021. He mentioned he “eventually learned they had reached a deal” and denied he directed the corporate to strike one.

“Salary cap circumvention rules are important to the league, and I’d want the league to investigate,” Ballmer informed ESPN on the time.

Shortly after the allegations arose, NBA commissioner Adam Silver mentioned it is up to the NBA to show wrongdoing throughout its investigation. “I would be reluctant to act if there was sort of a mere appearance of impropriety. … I think that the goal of a full investigation is to find out if there really was impropriety,” he mentioned.

Ballmer has insisted repeatedly in conversations with confidants that he won’t settle for a league end result that asserts he or the group meant to circumvent the wage cap and would as an alternative carry the matter to arbitration, in accordance to a number of sources with data of his pondering. However, the conversations between Kelley and Buchanan are ongoing, and it is unclear what NBA punishment Ballmer or the group is likely to be keen to settle for or in the event that they select to combat findings by way of arbitration.

A discovering of wage cap circumvention would represent a violation of the collective bargaining settlement between the NBA and the National Basketball Players Association. As such, all events — together with the Clippers and the union — should agree on the findings and on any self-discipline. ESPN reported final month that sources shut to the NBPA mentioned the union would not hesitate to take the matter to arbitration if the NBA sought penalties with out enough evidence.

Two sources acquainted with the NBPA’s pondering and the arbitration course of mentioned an argument {that a} sponsor introduction counts as wage cap circumvention probably wouldn’t survive. One of the sources mentioned, “That’s dead on arrival.”

Early within the current negotiations between the NBA and the Clippers, legal professionals for the league raised a decades-old wage cap circumvention case as a template for punishment, in accordance to two sources with data of the discussions. The NBA penalized the Minnesota Timberwolves in 2000 by taking 5 first-round draft picks and fining the group $3.5 million after the group signed an unlawful secret settlement with ahead Joe Smith that promised him a multiyear, multimillion-dollar extension. (The group’s 2003 and 2005 draft picks had been ultimately restored.)

The bodily evidence of the under-the-table settlement helped set up one of many strongest penalties ever imposed for any NBA franchise or participant, and it led to Smith’s contract being voided, Timberwolves proprietor Glen Taylor being suspended and vp of basketball operations Kevin McHale taking a pressured go away of absence.

One league insider with direct data of league enterprise mentioned a wage cap circumvention penalty primarily based on participant introductions is “an outrageous overreach” and that “it’s the job of players’ agents to ask for introductions to sponsors and potential endorsers.” The particular person additionally mentioned that if the league punishes the Clippers for introducing a participant to a group sponsor, it “will be felt across the league — and players and their management won’t stand for it.”

Introductions between group sponsors and gamers are widespread across the NBA, in accordance to homeowners and different league executives who’ve spoken to ESPN. They’re additionally one thing that the league itself has inspired.

In a slide from a 2024-25 deck for groups concerning the “business of basketball,” obtained by ESPN, the league lists “best practices” for “successful strategies shared by teams from previous seasons.”

“Identify what players are talking about or commenting on around the facility,” the primary level reads. “For example: if players have noticed a new sponsor on the court or on their jersey but aren’t familiar with what the company does, you might consider facilitating a dialogue with an executive from that company to talk about their business and their relationship with the team.”

Another slide concerning concepts for participant initiatives suggests: “Bring in a member of a team partner (either a corporate sponsor or community organization) to discuss the impact that player appearances have in their organization.”

The NBA operations guide for 2021-22, when the Clippers and Leonard reached their offers with Aspiration, states that group representatives cannot suggest a participant to a group sponsor as a candidate for an endorsement association. The group can, nevertheless, present a sponsor with participant contact info.

“If teams are approached by business partners or other third parties regarding a potential business relationship with a player,” the rule states, in accordance to a replica of the guide obtained by ESPN, “teams should respond solely by providing the third party with contact information for the player and/or his agent.”

Ballmer informed ESPN in September 2025 that his group “found the email that makes the first introduction.”

“The introduction got made and then they were off to the races on, on their own. We weren’t involved,” he mentioned. “I eventually learned that they had reached a deal. I have no idea what the deal was.”

The Clippers agreed on June 30 to commerce Leonard to the Toronto Raptors in change for Brandon Ingram, Gradey Dick and draft picks. But the deal is on maintain after the Raptors discovered they’d be taking over the chance for any penalties that Leonard would possibly face — akin to a doable suspension or his contract being voided — on account of the investigation.

Leonard and his agent and enterprise legal professional, Harrison Gaines, have had conversations with the gamers’ union over the previous few weeks, and there has been no indication that Leonard will face a voided contract, in accordance to a supply with direct data of the talks.

Leonard and the Raptors are each working as if the commerce might be accomplished and reunite him with Toronto, in accordance to group sources.

Two sources with direct data of the scenario mentioned Leonard has maintained to the NBPA, league and Wachtell Lipton that he had no involvement in wage cap circumvention, and thus far conversations round potential penalties have centered on him paying restitution for potential improper advantages from the Clippers, akin to journey and lodging, for his consultant and uncle Dennis Robertson.

If the case goes to arbitration, the arbitrator might compel doc manufacturing, witness testimony and order discovery. After a listening to, the arbitrator’s ruling could be topic to an appeals panel made up of three folks collectively appointed by the NBA and NBPA. The appeals panel choice is binding. Only after that course of might Silver be approved to difficulty any potential punishment.

It’s unclear how lengthy a possible decision to the investigation would possibly take, notably if the matter results in arbitration. In July, Silver mentioned he needed a decision earlier than the beginning of the 2026-27 common season.

Aspiration in the end filed for chapter in 2025. The firm’s co-founder, Joe Sanberg, pleaded responsible to two counts of wire fraud for his function in a scheme that prosecutors mentioned defrauded traders out of $248 million. In June, he was sentenced to 14 years in federal jail.

In April, Ballmer’s legal professional wrote a letter to the decide sentencing Sanberg, wherein he mentioned Ballmer was “flagrantly defrauded” by Sanberg and misplaced his whole $60 million funding in Aspiration. According to the letter, Ballmer additionally commissioned an inside evaluate of the Clippers group and directed group workers and workers of his charitable group to cooperate with the NBA investigation.

ESPN’s Shams Charania and Bobby Marks contributed to this report.