The Los Angeles Clippers are at the center of a major scandal that could shake the foundation of NBA salary cap governance, as owner Steve Ballmer faces an investigation into alleged under-the-table payments made to star forward Kawhi Leonard. The controversy has sparked widespread attention after reports emerged suggesting Ballmer may have used a private investment to funnel millions to Leonard—outside official NBA compensation limits.
According to sources, Ballmer allegedly used the now-defunct fintech company Aspiration, in which he had invested, to pay Leonard as much as $28 million per year for virtually no work. The alleged deal, first put in place in 2022, reportedly required Leonard to do nothing more than remain part of the Clippers roster. This financial workaround, if proven true, would be a direct violation of the NBA’s salary cap rules, which aim to maintain parity among the league’s 30 franchises.
The case took a dramatic turn when a resurfaced video of former NBA star Gilbert Arenas gained traction online. Speaking on a podcast earlier this year, Arenas openly encouraged Ballmer to cheat the system, citing the owner’s immense wealth.
“If I’m Ballmer, I don’t give a f*** what that salary cap is,” Arenas said. “I don’t care what it says, I am cheating, I got too much money to be on the same playing field with you broke a** f*******. We’re not in the same convo, sir.”
Arenas even outlined a hypothetical playbook for Ballmer to evade scrutiny.
“You want $50 million? I’mma give you $45 million and $5 million on the books… behind the scenes, don’t even worry about it, I got you. You want a foundation? I got that. You want business deals? I got that.”
While those comments were largely dismissed as sensational at the time, they now read like a play-by-play of what the league suspects may have actually occurred.
The Clippers, for their part, have denied all allegations.
“Neither the Clippers nor Steve Ballmer circumvented the salary cap. The notion that Steve invested in Aspiration in order to funnel money to Kawhi Leonard is absurd,” the team said in a statement.
NBA Commissioner Adam Silver has confirmed that an investigation is underway. Given the gravity of the situation, the league’s findings could lead to severe penalties if rules were broken — including fines, suspensions, or loss of draft picks.
Leonard, currently on a three-year, $150 million deal set to run through 2027, is yet to comment. But the lingering question remains: Is that truly all he’s earning for wearing a Clippers jersey?
As the 2025-26 season tips off, the league and its fans await answers.
