The proposed trade that would see Kawhi Leonard return to the Toronto Raptors has been put on hold. This delay stems from an ongoing NBA investigation into whether the Los Angeles Clippers circumvented salary cap rules. The league informed the Raptors that acquiring Leonard would mean assuming the risk of any potential penalties resulting from the probe.
The Raptors stated they will await the conclusion of the league’s investigation before proceeding with the trade. While a team source denied that this pause indicates fear or expectation of punishment, it highlights the immediate consequences of the continuing inquiry into potential cap circumvention by the Clippers.
Investigation details and scope
The NBA’s investigation, which has now entered its 11th month, began in September following a report concerning a $28 million endorsement contract between Leonard and Aspiration Fund Adviser LLC. This company later filed for bankruptcy. The probe, conducted by the law firm Wachtell Lipton, initially focused on whether the Clippers facilitated a sponsorship deal for Leonard with Aspiration to bypass the NBA salary cap.
Sources indicate that the investigation has expanded in scope. It now also examines whether the Clippers improperly covered expenses for Leonard without reimbursement and if Leonard had a previously undisclosed endorsement deal with another company. NBA Commissioner Adam Silver previously expressed hope for a swift conclusion to the investigation, though the league has not provided an indication of its direction.
The Clippers and owner Steve Ballmer have consistently denied any wrongdoing. Ballmer has stated he was a victim of fraud, having lost money in Aspiration, whose co-founder pleaded guilty to federal fraud charges. National Basketball Players Association executive director David Kelly commented on the duration of the investigation, stating it should not take this long to resolve.
Aspiration deal under scrutiny
The core of the investigation revolves around Leonard’s contract with Aspiration, which was set to pay him $28 million. Leonard reportedly never publicly promoted the company. Former Aspiration employees, who have spoken anonymously, are still uncertain if the deal was intended to bypass the cap, though opinions vary.
Some believe only Aspiration co-founder Joe Sanberg, who was sentenced to 14 years in federal prison after pleading guilty to wire fraud charges, knows the full details. These individuals suggest Aspiration made genuine but unsuccessful attempts to market Leonard, partly due to his public profile. Others involved with the company have come to believe that cap circumvention was a factor.
The deal became a point of confusion for Aspiration executives, who did not see Leonard as a natural spokesperson given his detached public persona and limited social media presence. Despite discussions about marketing campaigns, including concepts like portraying Leonard as an offshoot of Marvel’s Groot, the creative team was eventually instructed to cease efforts, as nothing viable materialized. One former Aspiration employee recalled being told, “Stop thinking about Kawhi. This feels like a dead end.”
Despite the lack of public activity, Leonard and the Clippers were considered crucial to Aspiration’s portfolio. One person recalled Sanberg indicating that the Leonard deal included an understanding that the team and company would pursue more collaborations, suggesting a linked relationship. Another former executive, however, disputed the idea that the Leonard deal was primarily a means to secure further business with the Clippers, emphasizing the importance of the relationship with the franchise and Ballmer.
Former Aspiration CEO Andrei Cherny signed off on Leonard’s contract, though Sanberg reportedly brought the Clippers star into the deal. The sponsorship deal was reportedly valued significantly higher than endorsement agreements Aspiration had with other public figures, such as musician Drake and actor Robert Downey Jr., with Sanberg also providing Leonard with $20 million in company equity.
Trade implications and player status
The trade would involve the Raptors sending Brandon Ingram, Gradey Dick, two first-round draft picks, two second-round picks, and pick swaps to the Clippers for Leonard. Leonard previously spent one season in Toronto, during which the Raptors won their only NBA championship in 2019.
Leonard, who turned 35 earlier this month, is coming off his highest-scoring season, averaging 27.9 points for the Clippers in 65 games. He is a seven-time All-Star, seven-time All-NBA selection, and a two-time NBA champion, having also won in 2014 with San Antonio. The Raptors expressed eagerness to bring Leonard back to Toronto and hope for a quick resolution for their players, organization, and fans.
The NBA opened its investigation into Leonard’s endorsement contract with Aspiration Fund Adviser LLC in September.
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Source: nytimes.com
Mason Reed
Sports reporter covering football, basketball and international competitions.