The Kawhi Leonard Accusations

Although it is too early to definitively point fingers, there is mounting evidence and accusations that the L.A. Clippers paid Kawhi Leonard $28,000,000 under the table, circumventing the salary cap. Leonard has been incredibly silent and has denied the accusations, which are magnanimous if true. The accusation, although not yet proven, stemmed from a report by investigative journalist Pablo Torre and is incredibly detailed; the motive and perpetrator are clear. Aspiration—a global operations company that recently filed for bankruptcy—has reportedly received $50,000,000 in funding from Clippers owner Steve Ballmer. In its bankruptcy filings, Aspiration states that they still owed KL2 Aspire LLC—a company Leonard manages—$7,000,000. Furthermore, between 2022 and 2025, Aspiration was set to pay Leonard $28,000,000 if he remained on the Clippers. Despite this paper trail of money promised, Leonard didn’t once interact with Aspiration nor endorse them in an action worth $28,000,000. 

In 2019, Leonard was one of the most sought after free agents. During the previous season, Leonard led the Toronto Raptors to an NBA championship and was named NBA finals MVP in the process. This incredibly rare feat, along with his consecutive Defensive Player of the Year awards for three years prior, understandably made him one of the most desired players in the NBA. Yet, the accusations had already begun circling. According to the same leak that tied Leonard and the Clippers up to salary cap circumvention, it is possible that Leonard requested similar dealings from the Raptors. According to renowned sports writer Bruce Arthur, “that’s when the Raptors realized Leonard wasn’t asking to be introduced to Toronto’s lucrative corporate community; they were being asked to arrange no-show jobs and arrange no-investment investments.”

This controversy led to Leonard being traded to the Clippers. According to sources, the Clippers were willing to accept certain terms that the Raptors weren’t, including signing Paul George from the Thunder in order to provide Leonard with a star teammate. However, things didn’t pan out as expected for the Clippers. In the four year period from 2020 to 2024, the team failed to make it to the NBA finals; they missed the playoffs in two seasons; and they lost twice in the first round. They are now in a position very similar to years prior: a very talented team composed of many aging stars that unfortunately lack youth and energy. They also only possess three out of five first-round picks and zero out of five second-round picks, raising concerns for the team’s future. 

Leonard has been a major component of the Clipper’s failures, although he is arguably their best player right now. He is on a $50,000,000 contract, which is approximately 35 percent of the Clippers’s possible salary. The NBA is not very clear on salary cap circumvention, partly because it happens so infrequently. There isn’t much precedent in the modern NBA, but the last example was Joe Smith in 1999. The consequences were enormous; Smith’s contract was voided, the Timberwolves lost five first-round picks, and the team’s owner was suspended. In terms of rule, the NBA does mention that one punishment is “the forfeiture of draft picks.” Although this rule does not specify how many picks are forfeited nor implementation, such consequences would pose a serious problem for a team with already very little control over their draft picks if sanctioned. 

Additionally, it would be a huge stain on the team and Leonard’s reputation, possibly meaning the end of Leonard’s career. It may force Ballmer into stepping down, although this is currently unclear.

This is not a symptom of any one failing of the salary cap, but it is a reminder of a very flawed system. The NBA’s salary cap consists of a luxury tax for teams slightly over the cap; a “first apron,” also known as the hard cap; and a “second apron,” which is the absolute limit, yet it has never been used. However, currently 29 out of 30 NBA teams are above the salary cap—an average of $47,000,000. This is a huge issue for the NBA, since it shows that teams are completely disregarding the rules in place to incentivize teams to stay under the cap. It also decreases competition; for example the Cavaliers are $89,000,000 above the Brooklyn Nets in spending. Thus, it is no surprise that one made the Eastern Conference semifinals and lost only 22 percent of their games, whereas the other lost 68 percent of their games. 

Regardless of how the Leonard drama pans out, it will hopefully pile on more pressure on the NBA to make changes to their salary cap rules—which, as of right now, serve more as decoration than reality.