Nearly a year ago, the NBA formally launched its investigation into whether the Clippers and owner Steve Ballmer circumvented the salary cap through a team sponsor called Aspiration.
That’s a long investigation, and one that has stalled a trade to send Leonard to Toronto. While Pablo Torre and other reporters have done their part to keep the story going, the most common reaction now is, “What is going on with that? Is the NBA just trying to sweep it under the rug?”
No, although the league certainly would like this all to go away and not be a dark cloud hanging over the opening of a new season. While the investigation is technically still open, the findings from the report (done by the law firm of Wachtell, Lipton, Rosen & Katz) have been turned over, and the Clippers, Ballmer and the league are talking, potentially moving toward a settlement, league sources have told NBC Sports. Here is now ESPN’s Ramona Shelburne described the situation last week in an appearance on ESPN 710 radio in Los Angeles (hat tip ClutchPoints).
“I know that the investigators have presented initial findings, but they’re still making calls and putting things together. But they are having conversations with Balmer and his lawyers already. They’re talking about it. I don’t know if you would call it a settlement or some kind of negotiation, but that’s already happening...
“The conversations have been more about this failure to supervise and the nature of the introductions that were made between the Clippers and Kawhi’s people rather than direct evidence of salary cap circumvention done by Steve Ballmer. If you’re doing the easy parlance, that would be the murder charge. That’s a really serious charge that’s very hard to prove.”
What we could see is something not unlike what we have seen in far more serious cases before, such as when the government convicts a mob boss for federal income tax evasion — everyone knew that wasn’t his actual biggest crime, but it’s what the government could prove and lock him away for.
If the NBA wants to come hard for Ballmer he would fight, and the process would be lengthy. Under the CBA, with any punishment the league might hand down against the Clippers, Ballmer or Leonard would have to go before a neutral arbitrator, who would decide whether the punishments were appropriate. That decision could be appealed — and you can be sure Ballmer would. He has the means to drag this out for a long time, potentially moving into the court system. Also, you can be sure that if Leonard faces any punishment, the players’ union will step in on his behalf and fight it.
Which is why the sides are talking, but finding a settlement has the league walking a tightrope. On one side, they would need a punishment Ballmer would accept and not fight. On the other side, if the punishment is too lenient, every other owner would say, “If that’s the price to pay to get a superstar extra money to come to my team, I’m in.” Much like with tampering in free agency, it would quickly become the league norm.
What are the potential punishments for the Clippers? First, a fine for Ballmer and the organization, but also a suspension for Ballmer and/or other Clippers executives. The Clippers almost certainly lost draft picks through this process, but how many and what rounds? Finally, what, if anything, is the punishment for Leonard?
While there is no official deadline for the investigation to wrap up and the announcement of charges or a settlement, the on-hold Leonard trade to Toronto kind of creates one around training camps starting in about a month. Both the Raptors and Clippers either need that trade to go through or be called off early in camp, they can’t go into the season like this.
All of which means we may see some action later this month, but this also could well drag into 2027. This investigation, which started in September 2025, could drag well into the new NBA season. And it would be a talking point.
