Trade on Hold Amid Investigation
The Toronto Raptors announced on Thursday that the trade involving Kawhi Leonard is currently on hold. This decision comes as the NBA continues its investigation into the circumstances surrounding Leonard’s current contract with the Los Angeles Clippers. The league office informed the Raptors that they would “assume the risk of any potential outcome of the investigation impacting Kawhi.” In response, the Raptors stated they would wait for the investigation’s completion, expressing eagerness to bring Leonard back to Toronto and hoping for a swift resolution.
The investigation, which has been ongoing for 10 months, centers on allegations of salary cap circumvention by the Clippers. Reports suggest the Clippers were accused of paying Leonard impermissible benefits when he signed with the team ahead of the 2019-20 NBA season. The Clippers have cooperated with the investigation, providing numerous documents and interviews, and maintain their innocence, stating they “did not funnel money to Kawhi Leonard.”
The proposed trade, largely agreed upon on June 30, would send Leonard to Toronto in exchange for Brandon Ingram, Gradey Dick, rights to the Raptors’ first-round draft picks in 2031 and 2033, the right to swap positions with the Raptors in the first round of the 2027 draft, and two second-round picks. All players and draft picks involved in this deal remain in limbo until the investigation concludes.
Potential Outcomes and Risks
The primary concern for the Raptors was the possibility of Leonard’s contract being voided, which would mean trading significant assets for a player no longer under contract. Leonard has one year remaining on his contract extension. However, the Raptors conducted due diligence before agreeing to the deal and assessed the risk of Leonard being unable to play for them as remote.
While the NBA has indicated a willingness to approve the trade, it emphasized that the Raptors would be responsible for any fallout affecting Leonard. This scenario specifically applies to Leonard’s contract, meaning the Raptors would not inherit any risk related to potential punishment for the Clippers franchise. The league aims to avoid a situation where a trade is completed, severe penalties are imposed on Leonard, and the Raptors are left in a difficult position.
Historically, the only player contract voided in league history occurred in 1999 when the Minnesota Timberwolves signed Joe Smith to two contracts simultaneously. That incident resulted in the Timberwolves losing five future first-round picks and a fine, with Smith’s contract voided. However, the NBA in 2026 is different, and voiding Leonard’s contract could lead to issues with the NBA Players’ Association and the Clippers’ owner, Steve Ballmer.
Looking Ahead
The most likely outcome is that the trade will proceed as intended. Any discipline resulting from the investigation is expected to primarily affect the Clippers, potentially involving the forfeiture of future draft picks. Leonard might face a suspension or fine, but league business would continue. There is also a possibility that the investigation could determine the Clippers were victims of fraud, as they claim, and did no wrongdoing.
There is hope for a resolution soon, possibly around the time of the NBA Board of Governors meeting scheduled for next Tuesday in Las Vegas. Commissioner Adam Silver stated in early June that the league was close to wrapping up the investigation, emphasizing the need for finality for all teams involved. The firm conducting the investigation is expected to finalize its work in the coming weeks.
The delay also offers the Raptors a potential benefit: more time to explore expanding the trade. While the core terms of the deal are not expected to change, the Raptors could try to involve a third team to offload more salary than they take in. This could help them avoid being hard-capped at the first apron, which is currently their situation as they are sending out $47.1 million in contract value and receiving $50.3 million. If they can shed an additional $3.2 million in salary for draft compensation, they would gain more roster flexibility.
The NBA announced in September that it would investigate claims that the Clippers used a company known as Aspiration to pay Leonard $28 million for “no-show jobs.”
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Source: sportsnet.ca
