Steve Ballmer, owner of the Los Angeles Clippers, is facing allegations that he helped facilitate an improper payment arrangement in order to land Kawhi Leonard in 2019.[1] The claims are being brought by multiple investors in Aspiration (now known as Catona Climate), a financial services and sustainability startup that has partnered with many athletes and entertainers to build brand recognition.[2]
In a suit filed in California state court, the investors allege that Ballmer used the financial backing provided by Aspiration to funnel compensation to Leonard outside of the NBA’s salary-cap structure.[3] The suit describes the sponsorship arrangement as a scheme to “secretly funnel millions of dollars to star NBA player Kawhi Leonard.”[4] The suit further alleges that the investors would not have made the agreement had it not been for Ballmer’s encouragement.[5]
If proven, this would place Ballmer at the center of a securities-fraud claim by the investors and a potential salary-cap violation under NBA rules. Under the NBA CBA, teams are expressly prohibited from offering or arranging any “circumvention” of the salary cap, which includes “any direct or indirect inducement” for a player to sign with a team outside of the contract itself.[6]
As of now, the NBA has launched an investigation.[7] A useful point of comparison is the NBA’s sanctioning of the Timberwolves in 1999 when the league discovered that the team had arranged a series of off-the-books future contracts to evade the salary cap.[8] The league responded then by revoking five first-round picks, imposing a $3.5 million fine, and ordering the Timberwolves general manager and owner to stay away from the team.[9] This situation is slightly different in that, here, an owner is being accused by an outside investor, not another league or team entity. Thus, the underlying documents (including emails, term sheets, memos, and internal communications) may actually see the light of day through the process of discovery—regardless of the NBA’s hesitance to “stir the pot” and unearth wrongdoing.
This case highlights the reality of modern sports: superstar recruitment now extends beyond mere contract dollars and team competitiveness. Brand partnerships, equity stakes, personal ventures, and investment opportunities are now a tool of the trade that may tip the scales in a team’s favor. Thus, when a team representative, like Ballmer, is involved in those outside opportunities, the line between negotiations and illegal circumvention of league rules is blurred. This case may prove key in establishing where exactly that line is.
[1] Colin Salao, Aspiration Investors Sue Steve Ballmer Over Kawhi Leonard Deal, Front Office Sports (Nov. 3, 2025)
[2] Id.
[3] Id.
[4] Id.
[5] Id.
[6] NBA Collective Bargaining Agreement, Article XIII (“Circumvention”) (2017).
[7] Ryan Phillips, Steve Ballmer Facing New Lawsuit Related to Kawhi Leonard-Aspiration Scandal, Sports Illustrated (Nov. 3, 2025).
[8] Jon Krawcynski, NBA investigation into Kawhi Leonard, Clippers opens old wounds for Timberwolves, The Athletic (Sept. 4, 2025
[9] Id.
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