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The NBA has hired Wachtell, Lipton, Rosen & Katz to oversee its investigation into possible salary cap circumvention involving the Los Angeles Clippers and Kawhi Leonard, according to Sam Amick of The Athletic.

The firm previously handled high-profile league inquiries, including the probes into former owners Donald Sterling and Robert Sarver. Its involvement signals the seriousness of the allegations now facing Steve Ballmer’s franchise.

As pointed out by Dane Moore, the law firm also represented Alex Rodriguez and Marc Lore against Glen Taylor in the Minnesota Timberwolves ownership battle this past year.

The investigation centers on Leonard’s $28 million endorsement deal with Aspiration, a bankrupt tree-planting company. Ballmer held an investment in the firm, raising questions about whether the deal was tied to Leonard’s decision to join the Clippers in 2019.

NBA spokesman Mike Bass confirmed the league’s review after journalist Pablo Torre uncovered bankruptcy documents linking the All-Star forward to the arrangement. The league is expected to interview Leonard as part of the process.

Speaking with ESPN, Ballmer rejected claims that the franchise crossed salary cap lines. He said Leonard’s contract was finalized months before any introduction to Aspiration and described his stake in the company as under three percent.

“We cannot pay a player anything beyond what’s in his standard player contract, and we cannot cause anybody else to pay the player what’s beyond their standard contract,” Ballmer said. “We can’t do that, and we didn’t—certainly in this instance.”

The Clippers have stated they will fully cooperate with the NBA, emphasizing they welcome the chance to provide clarity. Ballmer also stressed that Leonard and his representatives have always operated within league guidelines.

If investigators find violations, penalties could include voiding Leonard’s contract, executive suspensions, or financial sanctions. The most recent case of cap circumvention came in 2000, when the Minnesota Timberwolves were punished for an illegal contract agreement with Joe Smith.

Amick noted on Sactown Sports 1140 that league executives are watching the outcome closely. “This situation is exactly what Adam [Silver] needs to cut out of the league right now,” he said.

The Clippers continue to maintain their position that Ballmer’s investment in Aspiration was unrelated to Leonard’s deal. With Wachtell Lipton now leading the review, the findings are expected to shape not only the team’s future but also broader discussions about cap enforcement across the NBA.