Clippers Kawhi Investigation Nears A Turning Point For Steve Ballmer

As the NBA's investigation into potential cap circumvention by the Clippers and owner Steve Ballmer unfolds, discussions of a settlement are underway with the league just weeks before the new season kicks off.

Steve Ballmer and the Clippers may be inching toward a resolution in the NBA’s Kawhi Leonard investigation, even if the finish line still isn’t in sight.

The league has spent months looking into possible cap circumvention tied to Leonard, Ballmer and the LA Clippers, and commissioner Adam Silver said in July that he hoped the matter would be wrapped up before the 2026-27 season begins. Training camp is set to open around the league in about a month, but the NBA still hasn’t offered a clear timeline.

A report from ESPN on August 17 said the league had not found evidence showing Ballmer routed money through team sponsors to pay Leonard and get around the salary cap. That same report said the NBA was “focused” on Leonard’s introduction to team sponsors and whether those meetings ran afoul of the league’s anti-circumvention rules.

The NBA pushed back hard.

“ESPN's article regarding the LA Clippers investigation - for which the NBA declined to cooperate - contains numerous and significant inaccuracies,” NBA Chief Communications Officer Mike Bass said in the statement. “The results in this matter will be made clear once the investigation is concluded.”

Ramona Shelburne added another layer on Thursday during an appearance on ESPN LA 710, saying Ballmer and his lawyers are already in talks with league investigators.

“I know that the investigators have presented initial findings, but they're still making calls and putting things together. But they are having conversations with Balmer and his lawyers already,” Shelburne told ESPN LA 710 on Thursday.

“They're talking about it. I don't know if you would call it a settlement or some kind of negotiation, but that's already happening.”

Shelburne also said those talks have not centered on direct proof that Ballmer tried to skirt the cap. Instead, she said the focus has been on whether Ballmer failed to keep a close enough eye on what happened after the introductions between Leonard, his camp and team sponsors.

“The conversations have been more about this failure to supervise and the nature of the introductions that were made between the Clippers and Kawhi's people rather than direct evidence of salary cap circumvention done by Steve Ballmer. If you're doing the easy parlance, that would be the murder charge. That's a really serious charge that's very hard to prove.”

That doesn’t mean Ballmer, the Clippers or Leonard are in the clear. Shelburne’s reporting suggests the league could still hand down other penalties or sanctions tied to Ballmer’s role and his alleged failure to supervise.

Whatever comes next, it figures to get messy. Any punishment would likely be challenged through arbitration and appeals, and once the NBA and Wachtell, Lipton, Rosen & Katz issue a final decision, more legal wrangling is expected.

Ballmer and the Clippers have continued to deny wrongdoing. In response to ESPN’s earlier August report, the team said Leonard and his side handled their own sponsor negotiations, and argued that a player’s relationship or deal with a team sponsor is not proof of cap circumvention.

There’s also still the question of Leonard’s status with the Toronto Raptors. Shelburne said the Clippers would welcome Leonard back and would be fine keeping him if the Raptors were to cancel the trade for any reason.

For now, the league has not said when the investigation will be finished.

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