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By Ethan Carter — 14 July 2026 — 4 min read

Ongoing Investigation and Trade Implications

The NBA’s investigation into Kawhi Leonard’s sponsorship deals has expanded, now examining a previously undisclosed endorsement agreement with another company. This development comes as the league continues its probe into a no-work sponsorship deal between Leonard and Aspiration, a now-bankrupt environmental company. The inquiry, which has been ongoing for nearly a year, has led the Toronto Raptors to put a trade for Leonard on hold.

The Raptors announced that the league informed them they would assume the risk of any potential punishment resulting from the investigation if they acquired Leonard. Consequently, the team will await the conclusion of the probe before finalizing the trade. This delay highlights the significant impact the investigation is having on team transactions and player movement within the league.

The trade, initially reported in June, would see the 35-year-old Leonard return to the Raptors, a team with whom he won an NBA championship in 2019. In exchange, the Los Angeles Clippers were set to receive Brandon Ingram, Gradey Dick, multiple first-round draft picks, second-round selections, and a first-round pick swap in 2027.

Details of the Aspiration Deal and Broader Scope

The investigation, conducted by the law firm Wachtell Lipton, initially focused on whether the Clippers circumvented the NBA salary cap by facilitating the sponsorship deal between Leonard and Aspiration. Sources indicate that the scope of the inquiry has broadened to include whether the Clippers improperly covered expenses for Leonard without reimbursement. Furthermore, the firm is now looking into whether Leonard had an unreported endorsement deal with a separate entity.

The original Aspiration contract was reportedly worth $28 million, though Leonard never publicly promoted the company. The existence of this deal was first reported in September by the “Pablo Torre Finds Out” podcast. Aspiration, which aimed to offset carbon footprints through tree planting, faced financial difficulties and eventually filed for bankruptcy.

Clippers owner Steve Ballmer has consistently denied any wrongdoing, stating he was a victim of fraud and lost his entire $60 million investment in Aspiration. The company’s co-founder, Joe Sanberg, pleaded guilty to federal fraud charges and was sentenced to 14 years in federal prison. Sanberg has reportedly spoken with NBA investigators.

Former Aspiration employees have provided insights into the company’s attempts to market Leonard. Despite his basketball achievements, some found him to be a challenging spokesman due to his detached public profile and limited social media presence. Concepts, including one envisioning Leonard as a character similar to Marvel’s Groot, were explored but ultimately abandoned.

The deal with Leonard raised questions among Aspiration executives, who did not view him as a natural fit for their marketing efforts. Despite the lack of public marketing, Leonard and the Clippers were considered a vital part of Aspiration’s portfolio. Some former executives believed the Leonard deal was linked to a broader understanding of future collaborations between the team and the company.

League’s Stance and Future Outlook

NBA Commissioner Adam Silver stated last month that he hoped the investigation would conclude soon, though no specific timeline has been provided. The probe is now in its 11th month. Some team executives around the league reportedly anticipate that the Clippers may face punishment as a result of the investigation.

The National Basketball Players Association executive director, David Kelly, has expressed that the investigation has taken a considerable amount of time. The Clippers, Leonard, and the Raptors are all awaiting a resolution to this complex situation. Leonard, a seven-time All-Star and two-time NBA Finals MVP, had his highest-scoring season with the Clippers, averaging 27.9 points in 65 games.

The Raptors remain eager to bring Leonard back to Toronto, and the league’s decision will ultimately determine the future of the proposed trade.

The investigation continues to unfold, with interviews conducted with various individuals, including Clippers executives, Aspiration executives, Leonard, and his business adviser, “Uncle Dennis” Robertson. The league has not yet indicated where the investigation is headed or what disciplinary actions, if any, might be taken.

The outcome of this extensive investigation will have significant implications for the teams involved and could set precedents for future sponsorship deals within the NBA. The Raptors’ decision to pause the trade underscores the seriousness with which teams are approaching the potential consequences of the league’s findings.

The league aims to bring finality to this case, which has generated considerable intrigue and frustration across the NBA this season.

Source: nytimes.com