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Kawhi Leonard's blockbuster return to the Toronto Raptors has hit a major roadblock after the NBA paused the trade while its investigation into the Clippers' alleged salary cap circumvention continues. Getty
Kawhi Leonard’s blockbuster return to the Toronto Raptors has been put on hold after the NBA halted the transaction while its investigation into the Los Angeles Clippers continues.
ESPN NBA insider Shams Charania reported Thursday that the Clippers-Raptors trade centered on Leonard will not be completed until the league’s investigation is finished. Charania said on NBA Today that the teams had been preparing to finalize the deal through the NBA’s required trade call before the league intervened.
“The Raptors and Clippers were set to finalize this deal, do the trade call with the NBA,” Charania said. “The NBA has essentially paused that conversation until the end of their investigation.”
Charania added that Toronto has declined to accept any possible consequences connected to the inquiry.
“The Raptors decide today that they will not be assuming the risk of any discipline or any other fallout that could happen with Kawhi Leonard after the league investigation is over,” Charania said.
Raptors-Clippers Trade Remains Frozen
The delay comes less than two weeks after ESPN reported that the Clippers agreed to trade Leonard to Toronto for Brandon Ingram, Gradey Dick, unprotected first-round picks in 2031 and 2033, a 2027 first-round pick swap and two second-round picks.
The move would reunite Leonard with the franchise he led to the 2019 NBA championship, when he won Finals MVP after averaging 28.5 points in the Finals against the Golden State Warriors.
Leonard, who turned 35 on June 29, has one season left on his contract worth $50.3 million. ESPN reported he would be eligible to sign a two-year, $123.7 million extension with Toronto once the deal is complete.
But the trade now cannot move forward until the NBA finishes its inquiry.
Clippers Deny Wrongdoing
The Clippers released a statement to ESPN saying they have cooperated with the investigation for the past 10 months, including dozens of interviews and tens of thousands of documents.
“On June 30, we reached an agreement in principle to trade Kawhi Leonard to the Toronto Raptors,” the Clippers said. “We have since been informed that the trade can only be finalized if the Raptors’ ownership group assumes the risk of penalties related to Kawhi’s contract that could theoretically result from the ongoing investigation.”
The Clippers said they expect the trade to be finalized after the investigation concludes.
“At the heart of this investigation are Joe Sanberg and Aspiration,” the team said. “We did not funnel money to Kawhi Leonard through Aspiration.”
Investigation Carries Major Stakes
The NBA investigation centers on whether the Clippers circumvented the salary cap through Leonard’s $28 million endorsement deal with Aspiration, a now-defunct green banking company that also had a $300 million partnership with the team.
ESPN’s Baxter Holmes reported June 5 that Leonard, his uncle and business adviser Dennis Robertson, Clippers owner Steve Ballmer, team executives and Aspiration officials had been interviewed by NBA investigators.
Under the 2023 collective bargaining agreement, salary-cap circumvention penalties can include fines up to $7.5 million, forfeiture of draft picks, suspension of team personnel and potentially voiding a player contract.
That explains Toronto’s position. If the Raptors acquired Leonard before the investigation ended, they could be exposed to fallout tied to his contract.
NBA commissioner Adam Silver said before the NBA Finals that the investigation was “far along” and that the league was close to needing to “wrap this up.”
Until then, Leonard’s return to Toronto remains an agreement in principle — not an official trade.
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