The NBA’s outside law firm, Wachtell, Lipton, Rosen & Katz, began gaining more traction securing cooperative witnesses in January after early resistance stalled its probe into the Los Angeles Clippers’ alleged salary cap circumvention involving star forward Kawhi Leonard, sources familiar with the investigation told The Athletic.
The inquiry centers on Leonard’s $28 million endorsement agreement with Aspiration, a now-bankrupt environmental company. Former Aspiration employees have alleged the contract, which required no actual work from Leonard, was structured to circumvent the league’s salary cap. The NBA launched its formal investigation in September 2025, two days after a podcast first aired the accusations.
In the probe’s opening weeks, lead investigator David Anders and his Wachtell team requested extensive records from the Clippers and sought interviews with former Aspiration staff. Many potential witnesses initially declined, citing fears of retaliation. Participation improved markedly by January.
One former Aspiration employee, granted anonymity by The Athletic, said interview questions targeted Leonard, his uncle and business adviser Dennis Robertson, and Aspiration’s internal operations, but notably excluded Clippers owner Steve Ballmer.
Ballmer’s financial ties to Aspiration are central to the case. He invested $50 million in the firm shortly before it announced a 23-year, $300 million title sponsorship deal with the Clippers. When Aspiration ran short on funds in late 2022, minority owner Dennis J. Wong injected $2 million; Aspiration then paid Leonard $1.75 million which was the precise amount of his quarterly contractual installment. Ballmer followed with an additional $10 million investment months later.
Aspiration filed for bankruptcy in March after co-founder Joe Sanberg pleaded guilty to defrauding investors of $248 million. Court filings list the Clippers ($30 million), Forum Entertainment ($11 million), and Leonard’s LLC “KL2 Aspire” ($7 million) among the three largest creditors.
Results from the investigation are not expected before the NBA All-Star Game, which Ballmer is hosting at Intuit Dome. If the league confirms cap circumvention, potential penalties include fines up to $7.5 million, forfeited draft picks, contract voidance, or suspensions of front-office personnel and Ballmer.