NBA Investigates Clippers’ Alleged Salary Cap Violations Amid Guilty Plea

Los Angeles, CA — Aspiration co-founder Joe Sanberg pleaded guilty to federal fraud charges on Monday. His guilty plea comes amid an investigation by the NBA regarding potential salary cap circumvention involving the Los Angeles Clippers.

Sanberg admitted to two counts of fraud in Los Angeles. As part of the NBA’s inquiry, the league is examining whether Clippers owner Steve Ballmer and star player Kawhi Leonard used Aspiration’s endorsement deal to bypass salary cap rules. Sanberg’s plea is a pivotal development in this case.

Aspiration is a California-based financial technology firm that declared bankruptcy early last year. According to the Department of Justice, Sanberg and a board member, Ibrahim AlHusseini, misled investors about the company’s financial health and fraudulently secured $145 million in loans from banks. AlHusseini had already pleaded guilty to charges of wire fraud in March.

Sanberg’s attorney, Marc Mukasey, stated, “There is a lot of misinformation out there about Joe Sanberg. We will provide a full picture of who he is at the appropriate time.”

Sanberg facilitated an arrangement that involved a $20 million equity stake gifted to Leonard, suggesting a no-show deal with the player. The Clippers reportedly have a long-standing financial relationship with Aspiration, starting with a $50 million investment in December 2021, followed by another $10 million as the company faced employee layoffs.

Moreover, Aspiration secured a $300 million sponsorship deal with the Clippers and provided over $50 million in carbon offsetting services to the team, drawing further scrutiny from league officials. The NBA has enlisted the law firm Wachtell, Lipton, Rosen & Katz to conduct a thorough investigation into these claims.

Steve Ballmer has denied any wrongdoing and contends that the Clippers did not circumvent any salary cap regulations. While the investigation unfolds, Sanberg is scheduled for sentencing on February 23, 2026.