The NBA’s investigation into the case involving possible salary cap fraud surrounding Kawhi Leonard remains ongoing, meaning the trade to the Toronto Raptors is still up in the air. According to reports, it could be a long time before the matter is resolved.
The investigation could drag on into 2027 if the parties involved cannot agree on a potential settlement that would impose sanctions on the L.A. Clippers, according to ESPN reporter Baxter Holmes. The National Basketball Players Association (NBPA) announced that it would take the NBA to arbitration should the league impose penalties without, in the NBPA’s view, presenting sufficient evidence.
The ongoing investigation has already put an agreed-upon trade on hold that would have brought Kawhi Leonard back to the Toronto Raptors. In return, Brandon Ingram, Gradey Dick, and several draft picks were set to go to the Clippers. Had the trade been completed before the investigation concluded, the Raptors would have borne the risk of having to assume potential sanctions against Leonard—including a suspension or even the voiding of his contract.
Silver expressed optimism in July
Both the Clippers and the Raptors therefore decided to suspend the trade for the time being. However, both clubs continue to expect that the trade will be completed once the investigation is concluded.
NBA Commissioner Adam Silver had stated in mid-July that the investigation was expected to be completed “this summer.” He had already announced during the NBA Finals that he anticipated a swift conclusion.
The Clippers are accused of circumventing the salary cap by allegedly paying Kawhi Leonard additional compensation through a sham endorsement deal with the now-bankrupt green banking company Aspiration. Aspiration co-founder Joseph Sanberg pleaded guilty to fraud last October and was sentenced to 14 years in prison in June.
Clippers Deny All Allegations
The Clippers continue to firmly deny the allegations. They emphasize that they did not use Aspiration to secretly pay Leonard additional compensation, but rather that they themselves were victims of Sanberg’s fraud. According to ESPN, the franchise is determined to fight the allegations “to the end”—even before an arbitration panel if necessary.
Kawhi Leonard led the Toronto Raptors to the franchise’s first NBA title in 2019 before signing with the Clippers as a free agent that same summer.
