Shams Charania Drops Latest Update on NBA Investigation of Kawhi Leonard’s Clippers

The NBA’s investigation into the Los Angeles Clippers and Kawhi Leonard has entered a crucial phase, with Shams Charania revealing that the league is actively interviewing key figures on both sides. At the heart of the probe is a search for potential salary cap circumvention: an accusation that, if proven, could trigger some of the league’s harshest penalties.

The controversy centers on a $28 million endorsement deal tied to a failed tree-planting company, Aspiration, funded by Clippers owner Steve Ballmer. Ballmer and the Clippers have denied wrongdoing, calling the arrangement standard and unrelated to team finances. Yet the NBA is now digging deeper, and the implications could be severe.

“The NBA told me that their investigation is underway, and it will most certainly include interviews with key subjects as part of both the Clipper side [and] Kawhi Leonard himself,” Charania said. “At the heart of it is going to be searching for concrete proof, a potential paper trail to show whether there was cap circumvention done.” He referenced the fallout from the 1999 Joe Smith case, where the Timberwolves faced heavy penalties for similar violations.

Charania is responding to podcaster Pablo Torre’s reporting, which shed light on the mechanics of the deal: documents reveal that from 2022 to 2026, Leonard was to receive $7 million annually, totaling $28 million, through his LLC, KL2 Aspire, with no promotional obligations required. This payment structure paralleled his contract extension timeline. A former Aspiration finance employee even stated, “It was to circumvent the salary cap,” indicating the payments may have been contingent solely on Leonard remaining a Clipper, and not on any marketing work.

If NBA investigators confirm that these payments were designed to bypass salary cap rules, the ramifications could be monumental: fines, suspensions, the voiding of contracts, and even early free agency for Leonard. The Clippers, already aggressive in trades and operating with limited draft flexibility due to outgoing first-round picks, could face a long-term setback that alters not just their contender status, but the broader landscape of franchise construction.

The potential fallout for Kawhi Leonard and the Clippers

Beyond fines or lost draft picks, the biggest ripple could be felt in the Clippers’ front office and long-term planning. While Kawhi Leonard was previously secured until the 2027 offseason, a cloud of uncertainty around his contract going into this season could affect both trade leverage and future negotiations. Rivals are already monitoring whether this investigation might accelerate his potential availability.

For the Clippers, the stakes are even more immediate. They’ve already committed over $195 million in salary for the 2025-26 season, with Leonard and James Harden forming the financial backbone. Losing their already limited first-round picks, or being restricted in their ability to use trade exceptions, would severely limit how they can build around that core, particularly with a new Inglewood arena opening next year that was meant to mark a fresh competitive era.

Additionally, Adam Silver and the NBA’s stance on cap enforcement will also come under scrutiny. A strong response would signal that the NBA is prepared to protect competitive balance in the new collective bargaining environment, potentially leading to tighter oversight of player endorsement deals tied to ownership interests.