Steve Ballmer and the LA Clippers can be penalized by the NBA after journalist Pablo Torre shed light on some alleged shady transactions between Ballmer and Kawhi Leonard on Tuesday. The exchanges were allegedly made to circumvent the NBA's salary cap.If those transactions turn out to be true, the Clippers could face strict punishment. On Wednesday, CBS reporter Sam Quinn summarized the penalties for cap circumvention in an X post.Sam Quinn @SamQuinnCBSLINKNBA penalties for cap circumvention: - Fine of up to $4.5 million for a first offense. - Fine of up to $5.5 million for a second offense. - Loss of one first-round pick. - The possibility of voiding contracts that involved circumvention.According to the league's policies, Ballmer's team could be fined up to $4.5 million. If this were the Clippers' second offense to circumvent the salary cap, they would face a fine of up to $5.5 million.The NBA can also force the team to forfeit multiple first-round picks. In an extreme scenario, the league holds the right to void the contracts and agreements involved in the circumvention scheme.In 2000, the Minnesota Timberwolves were in a similar situation. They were accused of circumventing the salary cap when signing Joe Smith. They were found guilty and had to endure harsh punishment.Keith Smith @KeithSmithNBALINKJust in case, here are the penalties when the Minnesota Timberwolves were found to have circumvented the salary cap to sign Joe Smith: -5 first-round picks forfeited (two were returned later) -$3.5M fine -Smith's most-recent contract was voided, and his Bird Rights were strippedThe Timberwolves had to forfeit five first-round picks; however, two picks were returned to them later. Their former owner, Glen Taylor, was suspended, and Joe Smith's contract was voided. Additionally, the team had to pay a $3.5 million fine.What did Steve Ballmer and the Clippers allegedly do for cap circumvention?On Tuesday's episode of "Pablo Torre Finds Out," the journalist shared about a potential rule-bending transaction between a company Steve Ballmer invested in and a company owned by Kawhi Leonard.A company called Aspiration, funded by Ballmer, entered a legal agreement worth $28 million with a company named KL2 Aspire, LLC, owned by Leonard. Aspiration filed for bankruptcy earlier this year, and Torre produced papers from its filing as proof for the transaction.Aspiration had allegedly agreed to pay Leonard $28 million in cash, divided into four parts, $7 million per year, for endorsing its vision, which was to plant more trees on the planet. However, Leonard apparently never once endorsed anything for the tree-growing service.Moreover, there were clauses in the documents that gave the Clippers star the power to deny any action desired by the company. Torre brought Aspiration's former finance team employee on his show, who claimed that the transaction was part of Leonard's deal and was done to circumvent the salary cap.