Kawhi Leonard, the quiet yet dominant two-time NBA champion, has found himself at the center of what might be the league’s most explosive scandal in history.

A $28 million endorsement deal tied to a bankrupt environmental company called Aspiration has led to allegations of salary cap circumvention, lifetime bans, and potential criminal charges.

But how did this all come to light?

And what does it mean for the future of the NBA?

The story begins with Aspiration, a green banking company founded in 2013 with lofty promises of saving the planet by planting trees.

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Backed by high-profile celebrities like Leonardo DiCaprio, Drake, and Robert Downey Jr., Aspiration raised hundreds of millions of dollars and was valued at $2.3 billion by 2021.

However, beneath its glossy environmental branding lay a web of deceit.

Federal investigations later revealed that many of the company’s claims about carbon offsets and tree planting programs were exaggerated or outright fabricated.

Enter investigative journalist Pablo Torre, who uncovered the scandal while digging through Aspiration’s bankruptcy filings in March 2025.

Among the documents was a creditor listing for KL2 Aspire LLC, an entity registered under Kawhi Leonard’s name.

This LLC represented the final installment of Leonard’s $28 million endorsement deal with Aspiration—a deal that, Torre discovered, was essentially a no-show job.

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Leonard never promoted the company, never posted about it on social media, and never fulfilled any of the contract’s minimal obligations.

The arrangement was so permissive that experts described it as a guaranteed payment agreement rather than a legitimate endorsement deal.

But the scandal doesn’t stop there.

Torre’s investigation revealed that the deal was allegedly orchestrated by Clippers owner Steve Ballmer, one of the world’s richest men, to secretly boost Leonard’s pay while circumventing the NBA salary cap.

Ballmer invested $50 million into Aspiration through his LLC, Poolpad, just months before Leonard signed his endorsement contract.

Aspiration then became a founding partner in the Clippers’ new Intuit Dome arena, in a $300 million sponsorship deal touted as a groundbreaking environmental partnership.

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The timing of these events raised every red flag in the NBA’s investigation playbook.

Leonard signed his four-year, $176 million extension with the Clippers in August 2021.

Two months later, Ballmer finalized his investment in Aspiration.

By November 2021, Leonard had registered KL2 Aspire LLC, setting the stage for what sources inside Aspiration described as a systematic effort to funnel money to Leonard outside of his NBA contract.

Internal emails obtained by Torre showed Ballmer actively facilitating business relationships for Aspiration, essentially acting as an unofficial spokesperson for the company.

Meanwhile, Aspiration prioritized Leonard’s payments above all other financial obligations, even as the company faced bankruptcy.

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Weekly meetings reportedly focused on ensuring Leonard’s contract was paid, with calls from Leonard’s uncle, Dennis Robertson, demanding payment treated as top priority.

The financial architecture of the scheme was both elegant and damning in its simplicity.

Ballmer’s investment provided the funding for Leonard’s massive contract, Aspiration served as the conduit for payments, and Leonard received compensation that was technically separate from his NBA salary but clearly tied to his status as a Clippers player.

The endorsement contract itself included unprecedented clauses that made it impossible for Leonard to breach the agreement, no matter how little work he performed.

In fact, Leonard fulfilled none of the contract’s requirements, which were already minimal to begin with.

As federal investigators closed in on Aspiration, the company’s fraudulent operations unraveled spectacularly.

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Co-founder Joe Sandberg pleaded guilty to wire fraud and admitted to defrauding investors of at least $248 million.

The Securities and Exchange Commission filed charges alleging that up to 90% of Aspiration’s claimed business deals were fabricated.

Among the creditor list in the bankruptcy filings were the Los Angeles Clippers, owed $30 million for their unfulfilled sponsorship deal, and KL2 Aspire LLC, owed $7 million for the final installment of Leonard’s contract.

The NBA’s response has been swift and decisive.

Commissioner Adam Silver announced a comprehensive investigation into the allegations, with league sources describing genuine panic within NBA offices.

Historical precedent suggests severe penalties if the allegations are proven true, including millions in fines, loss of draft picks, voiding of player contracts, and suspensions for executives or owners.

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For the Clippers, such penalties could be devastating, potentially derailing their competitive window and nullifying Leonard’s three-year, $153 million extension signed in January 2024.

Ballmer has denied any wrongdoing, claiming he was deceived by Aspiration’s fraudulent operations.

“They conned me,” Ballmer said.

“I made an investment in these guys thinking it was on the up and up, and they conned me.”

However, his defense faces significant challenges given the detailed timeline Torre uncovered and his documented involvement with Aspiration.

Internal emails show Ballmer personally facilitating business relationships for the company and expressing enthusiastic support for its partnerships.

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Leonard, true to his notoriously private personality, has remained silent about the allegations.

However, his silence may prove increasingly problematic as the investigation proceeds.

Commissioner Silver has previously stated that salary cap circumvention represents a cardinal sin against the league’s fundamental principles and that the NBA will pursue the most extreme measures available if violations are conclusively proven.

The broader implications of this scandal extend far beyond the immediate parties involved.

Other NBA owners are reportedly pressuring the league to take decisive action, viewing Ballmer’s alleged circumvention as an unfair competitive advantage enabled by his extraordinary personal wealth.

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Public reaction has been intense, with social media discussions highlighting the apparent inequity of wealthy owners potentially circumventing salary caps designed to maintain competitive balance.

Federal investigators continue to unravel Aspiration’s fraudulent operations, and additional details about the company’s relationships with Ballmer, Leonard, and other high-profile figures may emerge.

The parallel investigations by the Department of Justice, Securities and Exchange Commission, and NBA create multiple avenues for accountability, potentially resulting in serious criminal charges and unprecedented league penalties.

As the scandal unfolds, one question looms large: if this level of sophisticated circumvention was happening right under our noses, how many other schemes are still operating in the shadows?

Is this an isolated incident or just the tip of an iceberg that could destroy the competitive balance that makes the NBA so compelling?