Under Steve Ballmer’s watch, the Los Angeles Clippers allegedly defied the NBA’s strict regulations. The NBA world hasn’t forgotten Pablo Torre’s reports from September 2025. Kawhi Leonard’s $28 million no-show deal and association with the now-bankrupt Aspiration had dragged the franchise into controversy and raised the fear of fines. Now, Ballmer has a new aim to put an end to the lawsuits.

ESPN’s Baxter Holmes reported that a new lawsuit claims the LA Clippers owner’s lawyers are pushing back against the lawsuit. They asked the court to dismiss the case, arguing that the allegations are “sensational” and “patently false”. According to them, there’s no real evidence that Ballmer funneled money to Kawhi or took part in any fraudulent scheme.

In a filing submitted Monday, Ballmer’s legal team argues investors pulled him into the case while chasing losses blamed on Joseph Sanberg, targeting anyone wealthy enough to cover damages. Moreover, they insist that no evidence links Ballmer to any coordinated cap evasion.

They further contend the revised claims echo a media podcast, arguing speculation fits entertainment chatter, not sworn court records.

The response addresses the case launched on July 9, 2025, by 11 Aspiration backers after the firm collapsed in March, accusing co-founder Joseph Sanberg and executives of siphoning millions of dollars.

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At that stage, Steve Ballmer faced no charges. Ballmer and the Clippers reject any cap manipulation involving Kawhi Leonard and confirm full cooperation with the NBA review.

Now, speaking about the finances involved. By late 2021, the Clippers had entered a $300 million, 23-year commercial deal covering branding and uniforms. Soon after, Steve Ballmer invested $50 million in the same company, Aspiration.

Then, in 2022, Kawhi Leonard secured a four-year, $28 million endorsement deal. Combined, those interconnected moves total $378 million.

While Steve Ballmer and his team denied circumvention claims, an ex-employee from Aspiration told investigative journalist Pablo Torre that Kawhi Leonard‘s deal “was to circumvent the salary cap.”

Ex-employee’s confession escalates troubles for Steve Ballmer

“We’re broke. To invest in a broke company is beyond me. I really don’t understand it, but I might not be a very sophisticated investor,” one of the ex-Aspiration employees told Torre.

The whistleblower openly questioned Aspiration’s financial health. They committed $2 million to the struggling firm, a modest sum beside the $300 million raised a year earlier. The company was moving toward a public debut. As a result, the move raised concerns that strategic motives outweigh pure profit expectations.

Another source from Aspiration’s finance department added, “It really looks like the Clippers, through Dennis Wong, put in $2 million for Aspiration to make the $1.75 million payment to Kawhi. That’s what it looks like to me.”

Within league rules, the NBA restricts player compensation to preserve competitive balance. As a result, any attempt to bypass those limits through hidden payouts ranks among the sport’s gravest violations.

Moreover, the commissioner’s office has repeatedly cautioned that layered contracts, indirect funding, or outside financial channels threaten fair play and undermine trust across the league.

This saga now sits at the crossroads of power, perception, and proof. On one side stand denials, filings, and cooperation. On the other hand, whispers, timelines, and uneasy financial overlaps.

Meanwhile, the league watches closely. Therefore, Ballmer fights to shut the door, even as questions keep knocking louder.