Los Angeles Clippers star Kawhi Leonard’s contract situation has become a major storyline as the 2025-26 NBA season progresses.

In September, Pablo Torre reported that Leonard signed a $28 million endorsement agreement with Aspiration, a company backed by Clippers governor Steve Ballmer. Torre noted that he was unable to find any public references from Leonard about the company, prompting questions about the nature of the arrangement. An anonymous former Aspiration employee told Torre, "It was to circumvent the salary cap."

With scrutiny building, NBA insider Tom Haberstroh recently suggested that NBA commissioner Adam Silver could consider disciplinary action against Leonard and the Clippers.

"Maybe it’s a case where Adam Silver levies some sort of punishment," Haberstroh said on Yahoo Sports Daily. "Whether it’s forcing Kawhi Leonard’s contract to be invalidated, and I think that would be one of the things that is on the table."

Haberstroh added that if Leonard were suddenly to become available, several high-profile teams would move quickly.

"I think if Kawhi Leonard is now a free agent, you’re going to see a frenzy for his services with the likes of the Lakers, with the likes of the Golden State Warriors, or the New York Knicks."

Would the Warriors' Cap Situation Hurt Their Chances of Landing Kawhi?

Financial limitations may not be a decisive barrier. The Warriors are currently positioned to offer only a veteran minimum contract, reportedly under $700,000. However, similar restrictions apply to the Lakers, who are hard-capped at the first apron, and the Knicks, who are hard-capped at the second apron.

Other teams, such as the Spurs, could present slightly larger short-term offers using mechanisms like the $3.8 million biannual exception. Still, given Leonard’s stature, any short-term deal would likely precede a potential max contract in the offseason, minimising the importance of a modest salary difference now.

Leonard Becoming an Immediate Free Agent Would Be a Bad Look for the NBA

A scenario in which a top-tier player becomes a free agent late in the season would create a significant competitive imbalance. One possible outcome could involve the league suspending Leonard for the remainder of the season, though no formal decision has been made.

If the league were to impose severe penalties, a more plausible route might be voiding Leonard’s contract after the season concludes but before free agency begins. That would place him on the open market alongside other free agents, giving teams time to adjust their cap space accordingly.

For the Warriors, clearing sufficient room to sign Leonard outright would be challenging. A trade could represent a more realistic pathway. One speculative framework could centre on Jimmy Butler and first-round picks in exchange for Leonard, though it remains unclear whether the Clippers would entertain such discussions.

As the situation unfolds, the NBA’s next move could significantly impact not only the Clippers but also contenders like the Warriors.