The NBA isn’t ready to let the Los Angeles Clippers off the hook just yet — and it made that abundantly clear after an ESPN report suggested the league’s investigation had taken a potentially significant turn.
ESPN reported Monday that investigators have found no evidence Clippers owner Steve Ballmer personally funneled money through team sponsors to Kawhi Leonard as a way of circumventing the salary cap.
The report, citing three sources familiar with discussions between the league and Clippers, suggested investigators are instead examining whether Los Angeles broke rules simply by connecting Leonard with team business partners.
Los Angeles Clippers forward Kawhi Leonard gestures to fans as he is shown on the stadium video screen during a break in the quarterfinal match between Naomi Osaka and Elena Rybakina at Sobeys Stadium on Tuesday, August 11, 2026, in Toronto, Ontario, Canada. (This asset – including all text, audio and imagery – is provided by Imagn Images. Reuters Connec) IMAGN IMAGES via Reuters Connect
The NBA responded with an unusually forceful rebuke.
“ESPN’s article regarding the LA Clippers investigation — for which the NBA declined to cooperate — contains numerous and significant inaccuracies,” league spokesman Mike Bass said in a statement. “The results in this matter will be made clear once the investigation is concluded.”
The league did not specify which portions of ESPN’s reporting it considers inaccurate, leaving an already murky investigation with another major point of disagreement.
ESPN also reported that investigators are examining whether the Clippers failed to properly supervise employees and that attorneys representing Ballmer and the team have been engaged in “spirited” negotiations with the league since law firm Wachtell, Lipton, Rosen & Katz presented initial findings in late July.
The investigation began nearly a year ago after allegations surfaced that Leonard received a four-year, $28 million endorsement deal from Aspiration, a now-bankrupt company that had major financial ties to Ballmer and the Clippers.
Los Angeles Clippers owner Steve Ballmer celebrates with Derrick Jones Jr. on Thursday, February 19, 2026, at Intuit Dome in Inglewood, California. The celebration came after the Clippers defeated the Denver Nuggets. (Getty Images North America) Getty Images
The deal was alleged to have been a “no-show” arrangement designed to give Leonard additional compensation outside the salary cap. Ballmer and the Clippers have consistently denied circumventing league rules.
The probe has since reportedly expanded to examine Leonard’s relationships with other Clippers partners, including Daktronics and Boingo Wireless.
The Clippers maintain that introducing players to sponsors is standard NBA business and said they did not negotiate or dictate the terms of Leonard’s endorsement agreements.
The uncertainty has also complicated Leonard’s basketball future.
Los Angeles Clippers forward Kawhi Leonard (2) is defended by Golden State Warriors center Kristaps Porzingis (7), guard Brandin Podziemski (2) and guard Stephen Curry (30) in the first half during the play-in rounds of the 2026 NBA Playoffs at Intuit Dome in Inglewood, California, on Wednesday, April 15, 2026. (Imagn Images) IMAGN IMAGES via Reuters Connect
A blockbuster deal that would send Leonard back to the Toronto Raptors remains on hold while Toronto waits to learn what penalties, if any, could emerge from the investigation. NBA commissioner Adam Silver has publicly pushed for the matter to be resolved before the 2026-27 season begins.
Silver previously called salary-cap circumvention a “cardinal sin,” but also stressed that the league needs hard evidence rather than simply an appearance of wrongdoing before imposing punishment.
ESPN’s report appeared, at first glance, to represent a potentially major victory for Ballmer.
The NBA’s emphatic response made clear that the league believes the story is far from settled.
