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The NBA's investigation into alleged salary cap circumvention by the Los Angeles Clippers involving star forward Kawhi Leonard could continue into 2027, according to a recent report. The probe, which began nearly 10 months ago, examines claims that the Clippers funneled money to Leonard through a promotional deal with Aspiration, a now-defunct green banking company. The investigation, overseen by the law firm Wachtell, Lipton, Rosen & Katz, may extend beyond NBA Commissioner Adam Silver's desired deadline due to potential disagreements on findings or proposed penalties.
The Clippers are accused of paying Leonard through a $28 million endorsement deal with Aspiration, which also had a $300 million agreement with the team before its bankruptcy. Aspiration's co-founder, Joseph Sanberg, pleaded guilty to fraud and was sentenced to 14 years in prison. The Clippers deny any wrongdoing, claiming they were victims of Sanberg's fraud.
The investigation's outcome could impact a proposed trade sending Leonard back to the Toronto Raptors. The deal, involving players Brandon Ingram and Gradey Dick, along with draft picks, is on hold due to potential penalties Leonard might face, including suspension or contract voiding.
The National Basketball Players Association (NBPA) has expressed readiness to take the matter to arbitration if penalties are imposed without sufficient evidence. Potential punishments for the Clippers include fines up to $7.5 million, forfeiture of draft picks, and suspension of team personnel.
Commissioner Silver emphasized the need for a thorough investigation, respecting due process while addressing concerns from teams and fans. The NBA aims to conclude the investigation before the upcoming season, but arbitration could delay resolution.