The trade that would send Kawhi Leonard back to the Toronto Raptors has been officially suspended pending the outcome of the NBA's investigation into whether the Los Angeles Clippers violated salary cap rules, the two franchises announced Thursday.
The probe, opened in September 2025, centres on a $28 million endorsement contract between Leonard and Aspiration Fund Adviser LLC, a now-bankrupt California-based digital bank that marketed itself as environmentally friendly.
Aspiration co-founder Joseph Sanberg was sentenced last month to 14 years in federal prison after pleading guilty to defrauding investors and lenders of at least $248 million.
"At the heart of this investigation are Joe Sanberg and Aspiration," the Clippers said Thursday in a statement. "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."
The investigation is being conducted by outside counsel Wachtell Lipton, a New York-based law firm. Commissioner Adam Silver said in recent weeks he wants a resolution.
"My instruction to them is we can't be investigating forever. At some point you have to wrap it up," Silver said last month at the NBA Finals. "But at the same time, the most important thing is that we get it right."
The NBA said Thursday it does not "have a specific timeline for the conclusion of the investigation but expect the firm to finalize its work in the coming weeks."
Possible penalties for a deliberate cap circumvention finding include a substantial fine, loss of draft capital, and potentially even the voiding of a player contract under the terms of the collective bargaining agreement.
"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 said. "In light of this, we will wait until the league's investigation is complete."
Despite the impasse, Toronto reaffirmed that it still wants to acquire Leonard. The Clippers continue to deny any wrongdoing.
Sources
- https://apnews.com/article/kawhi-leonard-raptors-clippers-trade-nba-investigation-98231279868294edfa483b52be50536a
