Kawhi Leonard investigation: Clippers-Raptors trade on hold until probe is complete
Clippers’ Kawhi Leonard trade to Raptors stalled
The LA Clippers' trade that sent Kawhi Leonard back to the Toronto Raptors has been halted by the NBA until an ongoing 10-month investigation is completed.
On Thursday, the NBA shut down the idea that it is sweeping the Kawhi Leonard investigation under the rug.
What we know:
NBA free agency season is heating up and one of the biggest trades was centered around Kawhi Leonard after the Los Angeles Clippers traded him back to Toronto, where he helped lead the team to its first championship and earned his second Finals MVP.
However, a new report indicates the NBA must complete their investigation into salary cap circumvention allegations before the move is official.
PREVIOUS: Clippers make blockbuster trade to send Kawhi Leonard back to Toronto Raptors
Possible consequences
If Leonard and the Clippers are found to have violated league rules, some possible consequences include a loss of draft picks and Leonard's contract being voided.
Clippers, Raptors issue statements
What they're saying:
On Thursday, the Clippers issued the following lengthy statement to ESPN about the matter:
"For the past 10 months, our organization has fully cooperated with an NBA investigation, participating in dozens of interviews, providing tens of thousands of documents, and facilitating access to our staff. While the process has been challenging, we have remained committed to transparency.
On June 30, we reached an agreement in principle to trade Kawhi Leonard to the Toronto Raptors. We have since been informed that the trade can only be finalized if the Raptors' ownership group assumes the risk of penalties related to Kawhi’s contract that could theoretically result from the ongoing investigation. The investigation is ongoing, and we expect the trade to be finalized following its conclusion.
At the heart of this investigation are Joe Sanberg and Aspiration. 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, who has been convicted and sentenced to 14 years in prison.
Kawhi Leonard #2 of the Los Angeles Clippers. (Photo by Soobum Im/Getty Images) (Getty Images)
We recognize the uncertainty this has created and the impact it has had on our team, our fans, the Raptors organization, their fans, and the players whose futures remain affected while this process continues. We remain confident that, when the facts are evaluated fairly and thoroughly, the NBA will confirm exactly what we have said from the beginning: We have not done what we are accused of doing."
Raptors issue statement: ‘[We] remain eager to bring Kawhi back to Toronto’
"Regarding our planned trade with the LA Clippers for Kawhi Leonard, 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. In light of this, we will wait until the league's investigation is complete. The Raptors remain eager to bring Kawhi back to Toronto and look forward to a swift resolution for our players, our organization, and our fans."
The backstory:
A report alleges Clippers owner Steve Ballmer attempted to evade the salary cap by having Leonard sign an alleged fraudulent $28 million endorsement deal with Aspiration Partners Inc.
The report alleged the two-time NBA Finals MVP signed the endorsement deal with no obligations to do any work, which was subsequently labeled a "no-show job." The deal was allegedly arranged so Leonard could make more money under the table. Ballmer invested $60 million into the company and has denied any wrongdoing.
Aspiration filed for bankruptcy in March 2025. Earlier this year, Aspiration co-founder Joseph Sanberg was sentenced to 14 years in prison for what federal officials said was a $248 million scheme to defraud investors and lenders.
"This serial fraudster used his Cinderella-like background, impressive educational credentials, and virtue signaling skills to swindle investors and lenders out of hundreds of millions of dollars," said First Assistant U.S. Attorney Bill Essayli of the Central District of California. "This criminal case serves as a warning: Anyone can get duped by a con man."
PREVIOUS COVERAGE:
- NBA investigation into Clippers, Kawhi Leonard salary cap circumvention allegations to wrap up soon: Silver
- Kawhi Leonard investigation: Adam Silver gives update during All-Star Weekend
- Kawhi Leonard scandal: What we know about the alleged $28M ‘no-show job’
- Kawhi Leonard appears unfazed by scandal: 'I've been through times like these before'
- NBA will not rush judgment in Kawhi Leonard investigation, Commissioner Adam Silver says
The Source: The Associated Press contributed to this report. This report was also written based on an official statement issued by the Los Angeles Clippers organization to ESPN, federal sentencing documents from the U.S. Attorney's Office for the Central District of California, and active NBA trade registry logs.