NBA disputes report detailing potential findings in Clippers’ cap circumvention probe

The NBA is disputing an ESPN report that detailed findings of the league’s investigation into possible salary-cap circumvention by the LA Clippers and subsequent settlement negotiations.

“ESPN’s article regarding the LA Clippers investigation — for which the NBA declined to cooperate — contains numerous and significant inaccuracies,” the league statement read. “The results in this matter will be made clear once the investigation is concluded.”

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ESPN reported Monday that the NBA found no evidence Clippers owner Steve Ballmer directly funneled money to Kawhi Leonard via team sponsors and that the two sides had been “negotiating a resolution to the investigation.”

The NBA’s statement did not specify which parts of ESPN’s story were inaccurate.

“We stand by our reporting, which included numerous attempts by ESPN to get comment from the NBA,” an ESPN spokesperson told Awful Announcing.

The Athletic has reached out to the league office, the Clippers and the National Basketball Players Association for additional comment, and will update this story if either responds.

The Clippers released a statement that read in part, “the Clippers did not funnel money to Kawhi Leonard, arrange for others to compensate him on our behalf, or otherwise provide him with undisclosed compensation outside of his NBA contract.”

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The NBA’s investigation began in September into whether the Clippers had circumvented the salary cap through a $28 million endorsement deal Leonard signed with Aspiration, a now-bankrupt environmental company for which he did no public marketing work.

The investigation has also since examined whether Leonard had another previously unknown endorsement deal with another company, and if the Clippers improperly covered expenses for their star and were not reimbursed for them, according to multiple sources who spoke to The Athletic on the condition of anonymity in order to speak freely.

Earlier this month, the Pablo Torre Finds Out podcast subsequently reported Leonard also had a sponsorship contract with Daktronics, which manufactured the Intuit Dome’s large video screen.

Kawhi Leonard had a sponsorship with Clippers’ scoreboard operator
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Daktronics, by contrast, does not use public facing celebrity spokespeople or endorsers to promote the brand at all, apparently, and as one former Daktronics employee told us in a text message, I was told since it’s B2B and not a consumer product, it didn’t make sense to advertise that way. They’re the worldwide leader, arguably in jumbotron manufacturing, but this is where I do need you to know something else. And this is something that I initially heard on the phone from the first high-level source I’ve been talking to for the last 11 months. This was talked about just openly within the organization and from people working on the project, that Kawhi was a spokesperson for Daktronics. And it was just the biggest thing, it was just openly joked about within. People working on the project that knew about this, as it was 100% a way to circumvent the salary cap. And over months of vetting, the second high-level Clippers source, a former official, they also independently confirmed something else. Which is that this Kawhi deal was not only talked about by fellow higher-ups at the Clippers and Daktronics as a way to circumvent the NBA salary cap. Quote, I know Kawhi had a sponsorship with Daktronics, unquote. This second source was also told that Kawhi’s Daktronic sponsorship was a multi-million dollar deal, as my first source separately explained on tape. People at Electronics, people within the Clippers organization themselves, had told me about this multi-million dollar deal with Kawhi and Daktronics. They’re not a company that you would see a celebrity endorser for, you know, and then it wasn’t coming out of their end, that the Clippers were technically kind of funding it. You know, and that it was funneling money from the Clippers through Daktronics back to Kawhi. You know how many teams they work with, how many stadiums, they had their pick of the litter, and they went with Kawhi Leonard, who then never does anything. They don’t even put out a press release. Look, in fairness, maybe Daktronics would claim that there were. Private secret things, you know, the things behind closed doors and Because of that possibility, late last month. Sam Koppelman of Hunter Brook Media reached out to Daktronics directly. I got an email from someone who seemed to be a PR person, a marketing person at Daktronics. He then writes back to say, you know what, I’m not gonna call you, but let me introduce you to our VP. But that person was actually the general counsel of Daktronics. As soon as I mentioned the name Kawhi Leonard, I didn’t hear back directly from Daktronics, but within 30 minutes, I got an email from someone. From the domain name GFbunting.com. 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Ballmer has repeatedly denied any claims that the Clippers circumvented the cap and has said he was a victim of fraud, having invested $60 million into Aspiration. Aspiration co-founder Joe Sanberg pleaded guilty to federal fraud charges and was sentenced earlier this year to 14 years in prison. NBPA executive director David Kelly said last month he does not “think that there’s a ‘there’ there.” The union will try to have input in the process and has a vested interest in the outcome.

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There is no timeline for a resolution to the league’s investigation, but NBA commissioner Adam Silver said last month that he hoped the results would be out by the end of the summer and that the process needed to be complete before the 2026-27 season begins. Now, the end of summer looms close, and training camps begin in roughly six weeks.

The investigation has also put a hold on some league business. The Clippers are waiting to formally complete a trade that will send Leonard back to the Toronto Raptors. That has left not just Leonard but Brandon Ingram and Gradey Dick in purgatory. The Raptors balked at finalizing the deal after the league asked it to sign an agreement that they would live with the consequences of the investigation, if there are any.

This story will be updated.


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2026-08-18 03:22:20

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