Kawhi Leonard trade to Raptors on hold pending NBA salary cap investigation

The Toronto Raptors and Los Angeles Clippers have paused their blockbuster trade involving Kawhi Leonard, pending the conclusion of an NBA investigation into allegations of salary-cap circumvention by the Clippers. The deal, which would reunite Leonard with the Raptors—where he won his only NBA championship in 2019—has been put on hold after the league informed the Raptors that they would assume the risk of penalties tied to Leonard’s contract if the investigation finds wrongdoing.

The controversy centers on a $28 million endorsement deal between Leonard and Aspiration Partners Inc., a now-bankrupt environmental finance company. The NBA alleges that the Clippers, led by owner Steve Ballmer, used the arrangement to funnel extra compensation to Leonard outside the salary cap. Ballmer invested $60 million in Aspiration, which filed for bankruptcy in March 2025. Co-founder Joe Sanberg, who pleaded guilty to defrauding investors of $248 million, was sentenced to 14 years in prison earlier this year. The Clippers have consistently denied any wrongdoing, stating they were victims of Sanberg’s fraud.

“We did not funnel money to Kawhi Leonard through Aspiration,” the Clippers said in a statement. “Like many sophisticated investors, financial institutions, and business partners, we were victims of a fraud initiated by Sanberg.” The team emphasized its cooperation with the NBA’s 10-month investigation, which is being conducted by the law firm Wachtell Lipton. The probe, triggered by a 2025 investigation by journalist Pablo Torre, examines whether the Clippers arranged a “no-show” endorsement deal for Leonard to bypass cap rules.

The Raptors, meanwhile, have expressed willingness to finalize the trade but insist on waiting for the investigation’s outcome. “The NBA league office informed us that as a result of the ongoing investigation involving the Clippers, we would assume the risk of any potential outcome of the investigation impacting Kawhi,” the Raptors stated. “In light of this, we will wait until the league’s investigation is complete.” The team reiterated its eagerness to bring Leonard back to Toronto, where he remains a franchise legend.

The trade, agreed to in principle on June 30, would see Leonard return to the Raptors in exchange for forward Brandon Ingram, 2023 lottery pick Gradey Dick, and multiple draft picks, including unprotected first-rounders in 2031 and 2033. The Clippers, however, face potential penalties if the investigation finds violations, including fines, lost draft picks, or the voiding of Leonard’s contract. The NBA has not yet announced findings, but commissioner Adam Silver has urged the investigation to conclude “in the coming weeks,” emphasizing the need for finality.

The Clippers have also faced scrutiny over Ballmer’s financial ties to Aspiration. While the team claims they were unaware of any misconduct, Ballmer’s $60 million investment and the Clippers’ sponsorship deal with the company have drawn attention. The investigation has also involved Leonard’s uncle and advisor, Dennis Robertson, though the Clippers have denied any direct role in arranging the endorsement deal.

Leonard, who is entering the final year of his $149.5 million contract, has not publicly addressed the allegations beyond a brief denial. The Raptors, meanwhile, continue to position the trade as a strategic move to rebuild around the two-time champion. However, the hold on the deal has created uncertainty for both teams, with the Clippers’ rebuild and the Raptors’ playoff aspirations now contingent on the investigation’s resolution.