Whether Kawhi Leonard has done anything wrong or not, he sure has a set of cautionary tales in front of him. First, the Timberwolves’ 1999 Joe Smith saga: the Minnesota side got hit with a $3.5 million fine, lost five first-round picks, and Smith’s contract got voided by David Stern. Then there’s the Lance Armstrong case from outside the NBA. The USPS paid millions to sponsor his cycling team, but after his doping scandal, Armstrong settled a whistleblower lawsuit for $5 million. The allegations against Kawhi Leonard have yet to be proven. So, Iman Shumpert directly asked a question in his defense, “But is it a rule?”

Here’s the context. On the All In Show, Iman Shumpert joined Darius Miles, Rashad McCants, and Kenyon Martin to debate whether Kawhi and the Clippers did anything wrong. “I’m just saying, they said my man went and got a little separate account. Are we mad at the man for the separate—are we mad at the Clippers if this ends up being true? Are we mad that they did that, or is it like the man deserve the money, give him the money?” Iman Shumpert asked.

Darius Miles immediately fired back, saying, “No. If they did it, it’s wrong. You got to play by the rules. Like that’s just like how they did with Joe Smith… Everybody gonna do it though. Yeah. You That’s the rule. You can’t do that.”

The discussion continued as the group then spoke about past instances, such as the Joe Smith and Lance Armstrong controversies. They discussed how others might be influenced to earn quick cash in a perhaps not-so-straightforward way. Kenyon Martin weighed in, saying, “So if you going to compete, then you on those levels, if you get caught, but if you get caught, you get caught, then you got to deal with the consequences. Right. That’s my thing.”

Iman Shumpert stood his ground, though. He first questioned whether it’s a rule or not, and then continued after Martin, saying, “That’s why I say it can’t be a rule, ‘cause there’s no—what’s his consequence?”

If the NBA finds Kawhi Leonard and the LA Clippers guilty, the consequences could be serious.

Players could face fines of up to $350,000, team personnel might be suspended, and in extreme cases, Kawhi’s 2024 three-year, $153 million contract could be voided, making him a free agent before 2026. Of course, there’s always a chance the Klaw walks away clean if the league decides he wasn’t directly involved in setting up the deal. With that kind of money and reputation on the line, every detail matters.

Here are the basics of the rules, as per Article XIII of the CBA, sourced from a Sportico write-up.

• The CBA doesn’t contain a rule that specifically contemplates punishment of a team for the actions of a sponsor. That makes sense since a sponsor is a separate entity. Article XIII references a team running afoul of its language by entering into an agreement or understanding with a sponsor or business, but a sponsor acting on its own doesn’t fit squarely within that definition. Likewise, while Article XIII expansively prohibits “any agreements” of “any kind” that are “express or implied, oral or written” or “understandings of any kind,” that language still implies the team’s involvement.
• The CBA also makes clear that teams have discretion in sponsorships. Article XXVIII states that “nothing” in the CBA “shall limit the rights” of “NBA teams to provide, and authorize others to provide, advertising and promotional opportunities within NBA games or NBA or Team events and NBA-related or Team- related content.”
• Merriam-Webster defines understanding as “a mutual agreement not formally entered into but in some degree binding on each side” or a “friendly or harmonious relationship.” In court filings, judges and prosecutors have defined understanding as “the comprehension or awareness of the parties” and “at least a universal perception or belief.”

So, yes, there is relevant legislation in place, and it all depends on how the NBA interprets the term “understanding”. The penalties depend on the type of violation, as outlined in the NBA-NBPA CBA rulebook.

For a Section 1 case, fines can hit $4.5M for the first offense, $5.5M for repeats, contracts can be voided, and first-round picks could be stripped. Section 2 is even tougher: fines up to $7.5M, year-long suspensions, voided deals, and unlimited draft pick losses.

In short, the Clippers’ punishment depends entirely on what the investigation uncovers.

Iman Shumpert and Co. also talked about Shai Gilgeous-Alexander! Why, you ask? Back in the day, the Clippers went all-in to build around Kawhi Leonard and Paul George, sending SGA, Danilo Gallinari, five first-round picks, and two future pick swaps to Oklahoma City. It was a bold gamble, leaving no safety net and focusing on a short championship window. At that time, Shai was just a promising rookie, averaging 10.8 points and 3.3 assists. 

Because of that trade, any fallout from the current investigation could cast a shadow over SGA’s old connection with the Clippers. While he isn’t directly involved in Kawhi’s contract situation, the ripple effect of the league’s penalties could theoretically boomerang back to the trade.

Kawhi Leonard breaks his silence on the Aspiration controversy

Kawhi Leonard finally broke his silence on the Clippers’ ongoing salary cap chatter on Media Day ahead of the new season. He didn’t dodge the questions, saying, “It’s easy, for us, it’s nothing to hide,” making it clear he believes he hasn’t done anything wrong.

The Klaw explained that while his name keeps popping up in headlines, he’s focused on basketball and won’t let the controversy distract him. “I’ve been through times like this before. Just going through the year last year, going through the (Los Angeles wildfire). Soon as I came back, that first game, my house and my community caught on fire. I don’t think it’s going to be harder than that,” he added, showing that he’s mentally locked in and not intimidated by the media storm.

LA Clippers president Lawrence Frank reinforced Kawhi Leonard’s stance. Frank said, “There is no gray area. There are no shortcuts. It’s clear what we are allowed to do. We are eager for the whole picture to come out, and we are confident in what they will show,” signaling the LA organization’s confidence.

The controversy centers around a marketing agreement that Kawhi Leonard signed with Aspiration. According to reports, mainly via Pablo Torre, the hoopster inked a $28 million deal. And it seemingly aligned with Leonard’s 2021 contract extension. The question now is whether this deal was done to enable the Clippers to circumvent the salary cap. The arrangement allegedly added millions to his income while requiring little to no promotional effort from him.

When Aspiration later filed for bankruptcy, the unpaid sums—$7 million owed to Kawhi Leonard’s KL2 Aspire LLC and other outstanding amounts tied to the Clippers—came under scrutiny. This combination of certain important dates aligning with payouts is what has triggered the NBA’s official investigation.