NBA probe into Leonard's deals continues

By Tyler Brooks — 14 July 2026 — 3 min read

NBA probe into Leonard’s deals continues

The NBA’s investigation into Kawhi Leonard’s sponsorship deals has expanded, now encompassing a previously unreported endorsement deal with another company, according to multiple sources. This development comes as the league’s inquiry into Leonard’s agreement with Aspiration, a now-bankrupt environmental company, approaches its 11th month. The investigation is being conducted by the law firm Wachtell Lipton.

Initially, the probe focused on whether the Los Angeles Clippers circumvented the NBA salary cap by facilitating Leonard’s sponsorship deal with Aspiration. Sources indicate that the investigation has also looked into whether the Clippers improperly covered expenses for Leonard without being reimbursed. The ongoing nature of this inquiry has created uncertainty around Leonard’s potential trade back to the Toronto Raptors.

Toronto paused a trade that would bring Leonard back to the team. The league informed the Raptors that they would bear the risk of any punishment resulting from the investigation if they acquired Leonard. While a team source denied that this delay implies fear of a penalty, it highlights the consequences the probe is already generating.

Details of the Aspiration agreement

The investigation’s origin lies in Leonard’s contract with Aspiration, which was reportedly set to pay him $28 million. However, the company faced financial difficulties and ultimately filed for bankruptcy. Leonard never publicly promoted Aspiration. The existence of this deal was first reported in September by the “Pablo Torre Finds Out” podcast.

Former Aspiration employees, who have spoken anonymously, remain uncertain if the deal was intended to bypass the salary cap. Some believe that only Aspiration co-founder Joe Sanberg knows for certain. Sanberg was sentenced to 14 years in federal prison after pleading guilty to two counts of wire fraud and has spoken with NBA investigators.

Aspiration executives reportedly found Leonard to be an unconventional choice for a spokesperson due to his reserved public profile and limited social media presence. Despite discussions and creative efforts, including concepts involving Leonard as a character similar to Marvel’s Groot, marketing campaigns for Leonard with Aspiration did not materialize. One former Aspiration marketing employee recalled being told, “Stop thinking about Kawhi. This feels like a dead end.”

Despite the lack of public activity, Leonard and the Clippers were considered important to Aspiration’s portfolio. One individual recalled Sanberg stating that the Leonard deal included an understanding that the team and company would pursue more deals together. Another former executive, however, disputed the idea that Leonard’s deal was primarily a means to secure more business with the Clippers, emphasizing the importance of relationships with the franchise and owner Steve Ballmer.

Impact on teams and league outlook

The protracted investigation has caused frustration within the NBA. NBA Commissioner Adam Silver stated last month that he hoped the investigation would conclude soon, but the league has not indicated its direction. Some team executives reportedly anticipate that the league will penalize the Clippers.

The Clippers and Ballmer have denied any wrongdoing. Ballmer has stated he was a victim of fraud and lost money in the company, whose co-founder pleaded guilty to federal fraud charges. National Basketball Players Association executive director David Kelly commented that the process should not take this long. Ballmer’s representatives indicated in a letter to the judge overseeing Sanberg’s sentencing that Ballmer lost his entire $60 million investment in Aspiration.

If Leonard were to face punishment as a result of the investigation, Toronto could withdraw from the agreed-upon trade. This trade, first reported on June 30, would send Leonard back to the Raptors, the team with whom he won an NBA championship in 2019. In return, the Clippers were set to receive Brandon Ingram and Gradey Dick, along with multiple draft picks. Most executives who spoke to sources at the Summer League expect Leonard to avoid significant punishment, and that his trade to the Raptors will proceed.

The league’s board of governors is scheduled to hold a meeting on Tuesday, but there is no indication that a resolution to the investigation is imminent.