The NBA’s investigation into the Clippers has become an absolute mess

It’s been 11 months since the NBA opened a formal investigation into the Los Angeles Clippers for salary cap circumvention, and somehow Adam Silver has only made it worse. We are no closer to knowing what exactly happened, there’s backbiting occurring between the NBA and the media — but more concerning is a pervasive opacity shrouding the process, pronounced enough that it feels less like the league is leading an investigation and more like it’s trying to navigate a balancing act that will satiate the public’s need for answers while not angering Clippers’ owner Steve Ballmer.

Pablo Torre initially broke the story last year, which alleged that the Clippers used a now-defunct sponsor to funnel money to Kawhi Leonard as a fake employee, allowing the team to exceed his max-level contract. The Torre report initially got the ball rolling and led to the NBA investigation — which is ongoing now.

Since that point, the NBA has largely been quiet, Torre has continued to gather more details, expanding on his reporting, and on Monday ESPN dropped a story that intimated the investigation was coming to a close, functionally absolving Ballmer of responsibility as a result — which the NBA then refuted. It’s all a mess, so let’s try to make sense of this from all angles right now.

In September of 2025 Torre reported that Leonard had a $28M no-show deal with Aspiration, a green energy company, which functionally listed Leonard as an employee and spokesperson — when in reality he didn’t do any work for Aspiration. This was sourced through numerous ex-employees of Aspiration, who spoke to Torre anonymously and said it was a known secret inside the company that Leonard was being paid under the table on behalf of the Clippers

In August of 2026 a new report from Torre noted that Leonard had a second undisclosed endorsement deal with Daktronics, the company that made the video board for the Clippers. The nature of this deal has not been disclosed, though Torre says it was also sourced through employees of Daktronics.

Initially, ESPN was extremely quiet after Torre’s initial report. Then, in September of 2025 reporter Ramona Shelburne conducted a sit-down interview with Steve Ballmer that allowed him to explain the Clippers’ side of things, which was devoid of any hard-hitting questions. It essentially allowed Ballmer to absolve himself of responsibility, saying that he didn’t know anything about the deals — other than the fact that he made introductions between Aspiration and Leonard.

Reporting on ESPN’s side was quiet until this week, when a story was published by Don Van Natta Jr., Baxter Holmes, and Shelburne — which indicated that the NBA found no wrongdoing by Ballmer. Instead, the penalty was likely going to be focused on “failure to supervise,” saying that unnamed Clippers employees operated autonomously. In addition, the report indicated that the league and Clippers were working together on a resolution to the in investigation — which frankly should never, ever happen.

“The league presented initial findings of its investigation, led by law firm Wachtell, Lipton, Rosen & Katz, to the Clippers in late July, according to multiple people familiar with the matter. In recent days, both sides have been negotiating a resolution to the investigation, the people said.”

The NBA is denying the ESPN report, which we’ll get to in a moment.

From the first report, the Clippers have alleged no wrongdoing. Ballmer has positioned himself as simply a man who made introductions between Leonard and companies he did business with, having no knowledge a deal took place to pay Leonard. They’ve characterized this as a normal procedure for NBA teams to make these introductions, which is accurate — and has started a firestorm over the possibility that organizing business connections could be considered salary cap circumvention in the future.

Adam Silver has dragged this process out for almost a year. That enabled the Clippers to retain the No. 5 overall pick in the 2026 NBA Draft without punishment, while also allowing them to find a trade that will send Kawhi Leonard to the Toronto Raptors once the salary cap investigation is complete.

A statement by the NBA late Monday vehemently denied the ESPN report, but failed to address specific details of what the league denied.

Once again, the NBA is asking for patience from the public on an investigation that has taken longer than it ever should have, essentially saying we’ll get all the answers once the investigation is complete. Still, there is no timetable on how long this is going to continue to drag on.

One of the key reasons Adam Silver is so reviled as NBA commissioner is that his approach to everything when it comes to the league is that profit and expansion is more important than anything else, even competitive balance or fairness. Silver is light on punishment, even in the case of former Suns owner Robert Sarver who was fined $10M and suspended for one year after an investigation by the league found that he had routinely and often been racist, misogynistic, and inappropriate in the workplace. The punishment stopped short of forcing Sarver to sell the team, which he later did of his own will.

Sarver was a small player in the NBA’s circle of important owners. Steve Ballmer is a whale. The former Microsoft executive is the richest NBA owner by a significant margin, with a net worth of $152B — while also being critical to Silver’s goals when it comes to using the myriad business relationships Ballmer has to further the goals of the league.

Essentially Ballmer is the last owner Silver would ever want to punish for anything. As commissioner he doesn’t want to bite the hand that feeds, but these allegations are extremely damaging to the perception of the NBA. If the result of this investigation is too soft it will further erode public faith in the NBA as a whole, but too harsh at it will anger the league’s cash cow.

That balance is reportedly being worked on behind closed doors, according to the ESPN report from Monday. It makes it seem as if the Clippers have been found guilty of cap subversion; everyone in the room knows it, but now they are desperately trying to find a resolution together that will satiate the public without damaging Ballmer’s reputation or hurting his team too much. With pockets as deep as Ballmer’s, there’s functionally no fine imaginable that would be large enough to hurt him. Even if we imagine the same $10M fine that Sarver received, it would be the equivalent of 0.06% of his net worth — the same as a $60 fine for someone who earns $100,000 a year.

We all know what should happen. If the Clippers actively engaged in salary cap circumvention at any level, then they should be docked draft picks or forced to play under the NBA’s luxury tax for a set period. That will not happen. Silver does not want to harm the Clippers, not really. Nor will there be any suspension of Kawhi Leonard beyond a slap on the wrist, because to do more could void the trade to Toronto and hurt the Clippers as a result as well.

Nobody is going to be happy with the result of all this, except for Adam Silver and Steve Ballmer. That is how this is being engineered, and it’s by design. It’s a feature of the Silver-run NBA, not a bug.