NBA investigation into Clippers may be delayed until next year: Nearly 10 months after launch, still insufficient evidence found

On July 30, several people with knowledge of the matter told ESPN that should the involved parties fail to agree on the findings or a penalty settlement for the team, the NBA's investigation into the Clippers' alleged salary cap circumvention and private payments to Kawhi Leonard might be postponed to 2027.

Sources close to the players' union and familiar with the investigation said that if the NBA initiates disciplinary action without sufficient evidence to support the allegations, the union will not hesitate to file for arbitration.The league has been conducting this investigation for nearly 10 months, and the Clippers have consistently denied the allegations.

On July 9, Players Association executive director David Kelly said in an interview in Las Vegas that he does not believe the Clippers' 2022 sponsorship contract with Leonard, valued at $28 million, was suspicious. The sponsorship partner was the now-bankrupt green finance company Aspiration, which also signed a 23-year, $300 million sponsorship deal with the Clippers.

When asked whether the law firm Weil, Gotshal & Manges, which is handling the investigation, has evidence sufficient to impose penalties, Kelly responded, "From what I've seen so far, no.”

A source familiar with the investigation process cautioned outsiders that no one outside the firm has access to the complete findings, and that the length of the investigation should not be used to speculate whether the team has obtained key evidence.

NBA Commissioner Adam Silver stated on July 14 that the case is complex, involving bankruptcy court and multiple witnesses who are unwilling to cooperate with evidence collection.

If the Clippers, the players' union, and other relevant parties cannot reach an agreement, the case will be handled by a neutral arbitrator jointly appointed by the NBA and the union. The arbitrator has the authority to require parties to submit documents, summon witnesses for testimony, and initiate discovery. After the hearing, the arbitration decision can be reviewed by an appeals panel composed of three individuals jointly appointed by the league and the union, whose ruling is final and binding.

Circumventing the salary cap is a violation of the NBA's collective bargaining agreement, so the arbitration process applies. The entire procedure will ultimately determine whether Silver can impose penalties on the Clippers based on allegations that they funneled money to Leonard through Aspiration.

Silver told the media on July 14 that the investigation "needs to be concluded before the start of next season," while admitting, "There is no doubt that the investigation has taken longer than I expected."

The NBA has not yet responded to a request for comment on this matter as of today.

The investigation began in September 2025, triggered by a series of podcast episodes released by former ESPN writer Pablo Torre. Sources say that if the investigation ultimately produces irrefutable evidence of salary cap violations, the parties may reach a consensus on the findings and penalties, thereby avoiding arbitration.

Under the NBA's 2023 collective bargaining agreement, penalties for salary cap circumvention include: a maximum fine of $7.5 million for the team, direct forfeiture of draft picks, and voiding of player contracts; team executives found to have participated in the violation can be suspended for up to one year.

The Clippers have consistently maintained that they did not use Aspiration to funnel money to Leonard.A source close to the team and familiar with the investigation's progress said the Clippers will "fight to the end" and will go through the entire arbitration process if necessary.

A trade has created time pressure: the Clippers and the Toronto Raptors have discussed a deal to send Leonard back to his former team in exchange for Brandon Ingram, Gradey Dick, unprotected first-round picks in 2031 and 2033, a 2027 first-round pick swap, and two second-round picks.

The Clippers and Raptors reached this trade on June 30. Nine days later, both teams officially announced the trade was paused.

Both sides issued statements saying they had been notified by the league office that if subsequent investigations lead to penalties, the Raptors would bear the related risks for Leonard, such as player suspension or contract voiding.

Both the Clippers and Raptors have stated that they still hope to complete the trade, but it is unclear how the arbitration process will affect the transaction.

Apart from penalties related to salary cap violations, there is no definitive conclusion on what other sanctions the Clippers and Leonard might face. The Athletic recently reported that Weil, Gotshal & Manges has expanded its investigation to review a previously undisclosed commercial sponsorship contract of Leonard's, as well as various expenses incurred by the Clippers on Leonard's behalf for which they did not receive compensation.

Multiple sources who have worked with Silver for years have repeatedly told ESPN that public opinion will not influence Silver's judgment on this case.

One source interpreted: If the league ignores evidence pointing to the Clippers, concealing the truth would itself become a focus of public opinion; conversely, if the league imposes penalties without sufficient evidence, it would be accused of overstepping its authority. The source expressed full confidence that Silver will strictly follow the facts and handle the matter fairly, as he has repeatedly stated.

Silver admitted on July 14 that he understands why the public is dissatisfied with the lengthy investigation.

"On one hand, we need to respect everyone's legal rights. Imagine if any of us were under investigation, we would want the investigation to follow appropriate standards, implementing due process and the presumption of innocence. At the same time, we must also provide accountability to all teams, fans, and the media: that this investigation is comprehensive enough, and we have done our utmost to uncover the truth."