If the allegations are confirmed, the Clippers could be punished for violating the salary cap.
Kawhi Leonard made his first public appearance amid NBA rule violation saga. The Clippers star is involved in the scandal with the franchise’ majority stakeholder, Steve Ballmer. As per reports by journalist Pablo Torre, Leonard signed a $28 million endorsement deal with a shell company linked to a financial fraud scheme. The company was then reportedly funded with $50 million from Clippers owner Steve Ballmer himself.
The pressure on Ballmer and Leonard is likely to increase even further. Meanwhile, the NBA continues to investigate what is already seen as one of the biggest off-field scandals in recent years.
Kawhi Leonard made his first public appearance since Pablo Torre’s shocking report. The two-time NBA champion reached Arthur Ashe Stadium in New York to enjoy the men’s semifinals matches. He was wearing headphones while watching the tennis match.
A fun guy watching tennis. @kawhileonard | @NBA pic.twitter.com/K8k8qivNv7
— US Open Tennis (@usopen) September 6, 2025
Meanwhile, the NBA has started its investigation in the case. If the allegations are confirmed, the Clippers could be punished for violating the salary cap. Using a third party to pay a player beyond what he receives under his official contract—or what he could receive under the salary cap rules—is strictly prohibited by the NBA.
“We are aware of the media reports this morning regarding the Los Angeles Clippers and are beginning an investigation,” league spokesman Mike Bass told Charania.
BREAKING: The NBA has hired a law firm to investigate Kawhi Leonard and the Clippers for allegations of league salary cap circumvention by using an endorsement deal with a now-bankrupt environmental company, per The Athletic. pic.twitter.com/bhXBev8OuO
— Yahoo Sports (@YahooSports) September 5, 2025
Finally, the NBA is proposing various penalties for franchises that violate the rule, depending on the outcome of the investigations. These include fines of up to $7.5 million, suspension of those involved in negotiating the irregular agreement, contract cancellations, and even the loss of future draft picks.
Leonard will make his 14th season appearance in the NBA and sixth with the Clippers during the upcoming season. He won the title glory with the San Antonio Spurs in 2014, and with the Toronto Raptors in 2019.
Mandatory Credit: Ron Chenoy-Imagn Images
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wnba A native of Jaipur, Rajasthan, journalist, and a complete soccer and basketball fan, he found the huge interest with basketball by watching videos of Allen Iverson and Tony Parker, but fell head over heels in love with the sport during the Warriors’ championship era (2015-2018). A sports game addict since his late PS1, he’s also passionate about the Eagles, Inter Miami and the Fever. He’s fortunate to have seen all his favorite teams win championships. He also has a special love for cricket and football (soccer), where he is a fan of Royal Challengers Bangalore and Barcelona.
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