Trade agreement on hold
A trade agreement sending Kawhi Leonard to the Toronto Raptors from the LA Clippers has been put on hold. The delay stems from an ongoing NBA investigation into allegations of salary-cap circumvention by the Clippers. Both teams issued statements on Thursday, July 9, confirming that the deal, initially agreed upon on June 30, will not be finalized until the league’s investigation concludes.
The Raptors stated their eagerness to add Leonard to their roster but indicated they would wait for the investigation’s completion. This decision is to avoid assuming the risk of potential penalties, such as Leonard’s contract being voided or altered, which could result from the league’s findings. The Clippers acknowledged the investigation and their participation, noting that Toronto was informed of the potential penalties they would inherit if the trade were finalized prematurely.
The agreement would see Leonard return to the team he led to the 2019 NBA championship. In exchange, the Clippers are set to receive All-Star small forward Brandon Ingram, 2023 lottery pick Gradey Dick, and a package of draft picks, including unprotected first-round selections in 2031 and 2033. Leonard was recently in Toronto for Kyle Lowry’s retirement announcement, and Dick was at the Clippers’ facility earlier in the week.
Investigation details and team responses
The NBA’s investigation began approximately ten months ago, shortly after allegations surfaced connecting Leonard, the Clippers, and an alleged under-the-table deal with Aspiration, an environmental company that served as the team’s jersey-patch partner until the end of the 2022-23 season. The allegations, detailed in a podcast series, suggest the Clippers and chairman Steve Ballmer used Aspiration’s sponsorship to circumvent league salary-cap rules.
The Clippers have consistently denied these allegations, placing the blame on Joe Sanberg, a co-founder of Aspiration. Sanberg has been sentenced to 14 years in prison for his role in a fraud scheme. The Clippers stated, “We did not funnel money to Kawhi Leonard through Aspiration. Like many sophisticated investors, financial institutions, and business partners, we were victims of a fraud initiated by Sanberg.”
An NBA spokesperson indicated that there is no specific timeline for the investigation’s conclusion but expects the firm handling the probe to finalize its work in the coming weeks. NBA Commissioner Adam Silver acknowledged the ongoing nature of the investigation before the start of the 2026 NBA Finals, stating that the league is nearing a point where it needs to conclude the process for finality for all teams involved.
Impact on team operations
The delay in finalizing the Leonard trade has created uncertainty for both the Clippers and the Raptors, impacting their offseason plans. The Raptors’ statement suggests they could reconsider the deal if any potential discipline from the investigation is deemed too severe. The league had informed the Raptors prior to the trade agreement that the investigation could cause issues with any deal involving Leonard.
Despite this, the specifics of the trade were widely reported on June 30, leading the league to address the unprecedented situation. The Clippers have completed several other transactions without complications, including trades involving James Harden, Ivica Zubac, Chris Paul, and John Collins, as well as the signing of Rui Hachimura and re-signing of Kobe Sanders. However, the Leonard trade remains pending the outcome of the NBA’s investigation.
The upcoming NBA Board of Governors meetings next week present a potential opportunity for the league to close the investigation, as Silver mentioned on June 3.
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Source: nytimes.com
Mason Reed
Sports reporter covering football, basketball and international competitions.