Ballmer's Secret Kawhi Deal Risks NBA Sanctions, Franchise Value

Steve Ballmer, the former Microsoft CEO worth north of $100 billion, faces an NBA investigation after a Pulitzer-winning report revealed he allegedly used a carbon-credits company to funnel money to Kawhi Leonard in a secret deal that circumvented the league's salary cap. The probe, confirmed by the league, threatens the Los Angeles Clippers with penalties that could reshape the franchise's competitive future and test how far owners can push the cap rules.

The story broke through Pablo Torre's reporting for Meadowlark Media. Torre traced a $28 million deal between Leonard's LLC and Aspiration, a defunct carbon-offset startup. Ballmer was Aspiration's largest individual investor. According to a whistleblower complaint filed by two former Aspiration employees, Ballmer directed the company to pay Leonard through the startup, disguising what the NBA would treat as a salary cap violation. The complaint, obtained by Torre's team, alleges the payments were structured to avoid detection.

The NBA's collective bargaining agreement prohibits teams from using third-party entities to compensate players beyond the official contract. The Clippers signed Leonard to a four-year, $176 million deal in 2021. Any additional compensation – especially one tied to an owner's personal investment – would violate the cap. Torre reported that Leonard never appeared in an Aspiration ad or promotional event, despite being listed as the company's highest-paid endorser, earning more than A-list celebrities combined.

The league opened an investigation after Torre's first episode aired.