The NBA has interviewed Los Angeles Clippers star Kawhi Leonard and his business adviser Dennis Robertson as part of an investigation into allegations the team violated salary cap rules to compensate Leonard.
The probe was initiated following claims made by journalist Pablo Torre, who alleged that Clippers owner Steve Ballmer employed Leonard through a non-existent role at one of his companies to circumvent NBA salary cap restrictions. Torre's reporting, which cited legal documents, suggested the arrangement was designed to provide Leonard with additional compensation beyond his standard contract.
According to Torre's investigation, Ballmer partially funded a tree-planting company called Aspiration. The company then entered into a $28 million agreement with KL2 Aspire, LLC, a business owned by Leonard. Torre reported finding no evidence that Leonard performed any work for Aspiration. The contract between the two entities contained a clause that would allow Leonard to receive payment even if he did not work, and another clause voiding the deal if Leonard left the Clippers.
A former Aspiration employee told Torre the arrangement was designed to "circumvent the salary cap."
The Clippers and Ballmer have firmly denied the allegations. In a statement released to Torre, they said: "Neither Mr Ballmer nor the Clippers circumvented the salary cap or engaged in any misconduct related to Aspiration. Any contrary assertion is provably false."
This is not the first time investigators have examined Leonard's compensation with the Clippers. The NBA previously investigated Robertson in 2019 and determined at that time the team had not granted Leonard any impermissible benefits during the free agency period when he joined the club. The league indicated it would reopen that investigation if new evidence emerged.
Leonard, a six-time All-Star, signed with the Clippers in July 2019 after winning the NBA championship with the Toronto Raptors the previous season.
The NBA has not yet publicly commented on Torre's reporting. However, the league has established penalties for salary cap violations. Under the NBA collective bargaining agreement, the Clippers could face a fine of up to $4.5 million for a first offense if found to have attempted to circumvent the salary cap. The team could also lose a first-round draft pick as punishment.
The investigation represents a significant matter for the Clippers organization as the NBA examines whether the team engaged in competitive balance violations through improper compensation methods.