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The NBA has found no evidence showing that Steve Ballmer, owner of the Los Angeles Clippers, funneled money through team sponsors to pay Kawhi Leonard as part of a scheme to circumvent the salary cap, ESPN reported on Monday. The league is instead reportedly focused on whether the team’s introduction of Leonard to team sponsors constitutes a violation of league rules. Specifically, the league is determining whether the Clippers are guilty of a “failure to supervise” their employees, though it’s unclear what rule that would violate or what the punishment would be for doing so.

Soon after the report, the NBA issued the following statement: “ESPN’s article regarding the LA Clippers investigation — for which the NBA declined to cooperate — contains numerous and significant inaccuracies. The results in this matter will be made clear once the investigation is concluded.”

The NBA has been investigating the Clippers for salary cap circumvention for roughly 11 months following reporting from podcaster Pablo Torre. In September, Torre reported that Aspiration — a now-bankrupt sustainability company that Ballmer was a large investor in  — was paying Leonard millions of dollars seemingly as part of an endorsement agreement in which no services were rendered. Further reporting this month found a similar agreement between Leonard and Daktronicsthe company that made the enormous halo scoreboard at the Intuit Dome.

Any punishment brought about by the league for possible rules violations would need to be upheld through arbitration, with the arbitrator jointly selected by the NBA and NBPA, and an appeals panel, with three panelists jointly chosen by the NBA and the NBPA. Two sources told ESPN that bringing up cap circumvention charges on the basis of introducing a player to a sponsor would not hold up in the arbitration process, with one adding “that’s dead on arrival.”

The NBA and the Clippers are reportedly negotiating a resolution to the investigation, with the NBA bringing up the punishment it applied to the Minnesota Timberwolves for circumvention with Joe Smith (five first-round picks were stripped, with two eventually returned) as a possible template. Ballmer, according to ESPN, “has insisted repeatedly in conversations with confidants that will not accept a league result that asserts he or the team intended to circumvent the salary cap and would instead bring the matter to arbitration.”

The Clippers have repeatedly denied wrongdoing throughout the investigation. They released the following statement on Monday:

The belief for now is that Leonard will eventually be traded to the Toronto Raptors, as was agreed upon in June. The mere fact that negotiations between the NBA and the Clippers are occurring suggests that this matter could be reaching a resolution, but the NBA’s denial of some of ESPN’s reporting means there is still quite a bit we don’t know 11 months into this investigation.

Leonard, 35, is entering his 15th NBA season. He spent seven seasons with the Clippers, including the 2021-22 campaign that he missed with a torn ACL. Leonard was a four-time All-Star with the Clippers, but the team made it past the second round of the playoffs just once in his tenure. The Clippers lost in the first round of the playoffs in three straight seasons and then missed the playoffs in the 2025-26 campaign.

Leonard is entering the final season of a three-year, $149.5 million contract extension he signed with the Clippers. Per ESPN’s reporting, there is “no indication” to Leonard or his agent that his current deal could be voided as a result of the investigation.