Clippers Deny Pablo Torre's Allegations Of Circumventing Cap To Pay Kawhi Leonard
Guff from Torre or bluff from Ballmer?
Major news out of the NBA this week included allegations that the Los Angeles Clippers circumvented the salary cap through a fake company used to pay star Kawhi Leonard.
Former ESPN personality and current Meadowlark Media host Pablo Torre reported on his podcast Wednesday that the Clippers were involved in financial maneuvering through a company in which team owner Steve Ballmer had invested.
Torre alleges the Clippers routed $28 million to Leonard via a bogus endorsement deal with eco-finance firm Aspiration, funneled through Leonard’s KL2 Aspire LLC.
Leonard actually never performed promotional duties, making the deal appear to be a hidden compensation arrangement to avoid the salary cap, which is now under investigation by the NBA.
Given Torre’s tendency to ramp up drama on his platforms, some observers wonder if his framing leans heavier than the facts currently support.
INGLEWOOD, Calif. - Owner Steve Ballmer of the Los Angeles Clippers attend Game Four of the Western Conference First Round NBA Playoffs between the Los Angeles Clippers and the Denver Nuggets at Intuit Dome on April 26, 2025. (Photo by Kevork Djansezian/Getty Images)
INGLEWOOD, Calif. - Kawhi Leonard of the LA Clippers looks on during the game against the Denver Nuggets during Round One Game Six of the 2025 NBA Playoffs on May 1, 2025 at Intuit Dome. (Photo by Juan Ocampo/NBAE via Getty Images)
The report drew widespread criticism of the Clippers and Ballmer. Even Dallas Mavericks owner Mark Cuban spoke up to defend Ballmer.
Hours later, the Clippers released a statement denying Torre’s claims, stressing that neither the team nor Ballmer circumvented the salary cap and that Aspiration itself defrauded multiple investors.
"Neither the Clippers nor Steve Ballmer circumvented the salary cap," the statement read.
"The notion that Steve invested in Aspiration in order to funnel money to Kawhi Leonard is absurd. Steve invested because Aspiration's cofounders presented themselves as committed to doing right by their customers while protecting the environment.
"After a long campaign of market manipulation, which defrauded not only Steve but numerous other investors and sports teams, Aspiration filed for bankruptcy. Its co-founder, Joseph Sanberg, recently pleaded guilty to a $243 million fraud.
"Neither Steve nor the Clippers had knowledge of any improper activity by Aspiration or its co-founder until after the government initiated its investigation. Aspiration was a team sponsor for the 2021-2022 and 2022-2023 seasons before defaulting on its contract.
"There is nothing unusual or untoward about team sponsors doing endorsement deals with players on the same team. Neither Steve nor the Clippers organization had any oversight of Kawhi's independent endorsement agreement with Aspiration. To say otherwise is flat-out wrong.
"The Clippers take NBA compliance extremely seriously, fully respect the league's rules, and welcome its investigation related to Aspiration.
"The Clippers will also continue to cooperate with law enforcement in its investigation into Aspiration's blatantly fraudulent activity."
If proven true, the Clippers could face penalties similar to the 2000 Minnesota Timberwolves case, in which the NBA voided Joe Smith’s contract, fined the team $3.5 million, and stripped five first-round draft picks for a secret cap-circumventing deal.
For the Clippers, potential punishment could include major fines, loss of draft assets, voided contracts, and possible suspensions or bans for executives.
Given the magnitude of the alleged $28 million arrangement, the league could impose even harsher penalties to deter future violations.
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