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NBA Investigation into Clippers Kawhi Leonard Deal Could Extend Into 2027
The National Basketball Association’s inquiry into whether the Los Angeles Clippers and star forward Kawhi Leonard used an endorsement arrangement to skirt the league’s salary‑cap rules is still underway, with no definitive end date in sight. Launched in early 2025, the probe is being carried out by a law firm the NBA selected, and it remains in progress.
A key source of public information has been Pablo Torre’s podcast series Pablo Torre Finds Out, which has released 13 episodes on the matter. In the most recent installment, Torre highlighted fresh evidence that the investigation now covers a second endorsement deal with Aspiration and an investment in a United Soccer League team in Rhode Island that involves Leonard, his uncle, and his agent.
At the heart of the allegation is the claim that the Clippers used an Aspiration endorsement contract to provide Leonard with compensation that effectively bypassed the salary‑cap limits. The league’s spokesperson has confirmed that the investigation is ongoing and has not set a timetable. An ESPN report dated July 29 noted that the probe could extend into 2027 if the parties do not reach a settlement or if the NBA chooses to pursue further action.
Both the Clippers and Leonard have consistently denied any wrongdoing. The team has stated that the Aspiration deal was a standard endorsement agreement and did not involve payments that would affect the cap. Leonard has also said that he did not perform any marketing work for Aspiration, a claim echoed by the organization.
Torre, who was awarded a Pulitzer Prize for Audio Reporting in 2026, has been critical of the NBA’s handling of the investigation. In a recent appearance on The Dan Le Batard Show, he questioned the league’s authority to enforce the collective‑bargaining agreement and suggested that the scope of the inquiry could be influenced by Clippers ownership. He also warned that the NBA may be wary of a legal challenge from owner Steve Ballmer, who has the resources to pursue a lawsuit that could undermine league governance.
The legal team conducting the investigation, described in reports as a hand‑selected law firm, has not released any evidence to the public. Torre noted that while the league has requested documentation, no material has been made available, raising questions among observers about whether the investigation is moving beyond a public‑relations exercise.
According to SportsBusinessJournal, extending the probe into 2027 would be unprecedented for the NBA. The league’s salary‑cap for the 2025‑26 season is set at $154.6 million, and the CBA allows teams to exceed the cap under certain conditions; however, using an endorsement deal to pay Leonard would violate those rules.
The investigation is part of a broader scrutiny of teams’ financial arrangements. Earlier this year, the league also opened a review of the Milwaukee Bucks’ signing of Gary Trent Jr. for potential cap circumvention.
As of now, the Clippers and Leonard have not been formally charged, and the NBA has not announced any penalties. The investigation remains in a state of uncertainty, with the league reportedly hoping for a settlement while also preparing for possible further action. The outcome will affect roster moves, the enforcement of the CBA, and the broader question of how endorsement deals can be used to navigate salary‑cap restrictions.
In the coming months, the NBA is expected to continue gathering evidence and engaging with the parties involved. The league’s next public update will likely come after the conclusion of the current investigative phase or if a settlement is reached.
A key source of public information has been Pablo Torre’s podcast series Pablo Torre Finds Out, which has released 13 episodes on the matter. In the most recent installment, Torre highlighted fresh evidence that the investigation now covers a second endorsement deal with Aspiration and an investment in a United Soccer League team in Rhode Island that involves Leonard, his uncle, and his agent.
At the heart of the allegation is the claim that the Clippers used an Aspiration endorsement contract to provide Leonard with compensation that effectively bypassed the salary‑cap limits. The league’s spokesperson has confirmed that the investigation is ongoing and has not set a timetable. An ESPN report dated July 29 noted that the probe could extend into 2027 if the parties do not reach a settlement or if the NBA chooses to pursue further action.
Both the Clippers and Leonard have consistently denied any wrongdoing. The team has stated that the Aspiration deal was a standard endorsement agreement and did not involve payments that would affect the cap. Leonard has also said that he did not perform any marketing work for Aspiration, a claim echoed by the organization.
Torre, who was awarded a Pulitzer Prize for Audio Reporting in 2026, has been critical of the NBA’s handling of the investigation. In a recent appearance on The Dan Le Batard Show, he questioned the league’s authority to enforce the collective‑bargaining agreement and suggested that the scope of the inquiry could be influenced by Clippers ownership. He also warned that the NBA may be wary of a legal challenge from owner Steve Ballmer, who has the resources to pursue a lawsuit that could undermine league governance.
The legal team conducting the investigation, described in reports as a hand‑selected law firm, has not released any evidence to the public. Torre noted that while the league has requested documentation, no material has been made available, raising questions among observers about whether the investigation is moving beyond a public‑relations exercise.
According to SportsBusinessJournal, extending the probe into 2027 would be unprecedented for the NBA. The league’s salary‑cap for the 2025‑26 season is set at $154.6 million, and the CBA allows teams to exceed the cap under certain conditions; however, using an endorsement deal to pay Leonard would violate those rules.
The investigation is part of a broader scrutiny of teams’ financial arrangements. Earlier this year, the league also opened a review of the Milwaukee Bucks’ signing of Gary Trent Jr. for potential cap circumvention.
As of now, the Clippers and Leonard have not been formally charged, and the NBA has not announced any penalties. The investigation remains in a state of uncertainty, with the league reportedly hoping for a settlement while also preparing for possible further action. The outcome will affect roster moves, the enforcement of the CBA, and the broader question of how endorsement deals can be used to navigate salary‑cap restrictions.
In the coming months, the NBA is expected to continue gathering evidence and engaging with the parties involved. The league’s next public update will likely come after the conclusion of the current investigative phase or if a settlement is reached.
