The NBA's investigation into Kawhi Leonard and the Los Angeles Clippers has expanded beyond its original scope. The league's hired law firm, Wachtell Lipton, is now examining a previously unreported endorsement deal Leonard may have had with a second company, on top of its ongoing review of a no-work, multi-million dollar deal he signed with Aspiration, a now-bankrupt environmental company.
According to a report by The Athletic, the firm has also shifted to determine if the Clippers improperly covered expenses for Leonard and were not reimbursed for them. The original investigation centered on whether the Clippers used the Aspiration deal to circumvent the NBA's salary cap.
The investigation, which began roughly 11 months ago, shows no clear sign of ending soon. At his annual news conference ahead of the NBA Finals on June 3, Commissioner Adam Silver said the process was "close to the point now where I think we need to wrap this up." Despite that statement, the probe continues.
The Athletic's Tuesday report noted that "some team executives around the league have increasingly come to expect that the league will punish the Clippers." Silver will ultimately determine what discipline, if any, is handed down.
Aspiration co-founder Joe Sanberg has spoken to investigators. Sanberg was sentenced to 14 years in federal prison on two counts of wire fraud after pleading guilty, with prosecutors saying he defrauded investors and lenders out of $248 million. Also interviewed, according to ESPN's Baxter Holmes, were Clippers owner Steve Ballmer, other team executives, Aspiration executives, Leonard, and his business adviser Dennis Robertson.
The investigation's outcome could directly affect a pending trade. The Toronto Raptors confirmed last week that their agreed-upon deal with the Clippers involving Leonard will not be completed until the investigation concludes. The trade, first reported June 30, would return the 35-year-old Leonard to Toronto, where he won an NBA championship in 2019. In exchange, the Clippers were set to receive two-time All-Star Brandon Ingram, Gradey Dick, first-round draft picks in 2031 and 2033, second-round picks in 2030 and 2033, and a first-round pick swap in 2027.
If Leonard faces punishment as a result of the investigation, Toronto has the option to back out of the deal entirely. The news of the Aspiration arrangement first became public through the Pulitzer Prize-winning podcast Pablo Torre Finds Out in September, and Leonard is a seven-time All-Star and two-time NBA Finals MVP.
The investigation now enters its 11th month with no announced timeline for a final report.
