NBA reportedly finds no evidence Clippers funneled money to Kawhi Leonard

The NBA’s investigation into the Clippers and Kawhi Leonard has taken a significant turn. And for Clippers owner Steve Ballmer, it appears to be a favorable one.

The league has found no evidence that Ballmer funneled money through team sponsors to Leonard as a means of circumventing the NBA salary cap, according to Don Van Natta Jr., Baxter Holmes and Ramona Shelburne of ESPN. The report cites three people familiar with recent discussions between the league and Clippers.

That doesn’t mean the 11-month investigation is over.

Instead, ESPN reports the NBA is now focused on whether the Clippers violated league rules simply by introducing Leonard and his representatives to team sponsors. The league also has examined whether the organization could be guilty of a “failure to supervise,” although it remains unclear exactly which rule would apply or what punishment could follow.

The investigation originally centered on Leonard’s $28 million endorsement agreement with Aspiration, a now-bankrupt company in which Ballmer invested $60 million. It eventually expanded to other Clippers partners, including Daktronics and Boingo Wireless. Again, though, ESPN reports investigators have uncovered no evidence that Ballmer secretly directed money to Leonard through those companies.

That distinction is a pretty important one.

Ballmer and the Clippers have denied from the beginning that they arranged Leonard’s endorsement agreements to circumvent the cap. Ballmer has also reportedly indicated he would take the matter to arbitration rather than accept any league finding that he or the organization intentionally circumvented the cap.

Meanwhile, the Clippers’ agreed-upon trade sending Leonard to the Raptors remains on hold. ESPN reports Leonard and Toronto are nevertheless operating under the belief that the trade eventually will be completed.

Commissioner Adam Silver said in July that he hoped the investigation would be resolved before the regular season.

Based on the NBA’s reported findings, the biggest allegation hanging over Ballmer now appears considerably harder to prove.