The Toronto Raptors and LA Clippers have agreed to pause their blockbuster trade for Kawhi Leonard while the NBA completes an investigation into whether the Clippers violated salary cap rules, both teams announced Thursday.
The deal, struck on June 30, would have sent Leonard back to Toronto — the city where he led the Raptors to their first NBA championship in 2019. But uncertainty surrounding an ongoing league probe into an endorsement contract between Leonard and Aspiration Fund Adviser LLC, a now-bankrupt California-based digital bank, has forced both sides to hit pause.
"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 a statement. "In light of this, we will wait until the league's investigation is complete."
The NBA opened its investigation last September into whether a $28 million endorsement deal between Leonard and Aspiration violated collective bargaining rules. Aspiration filed for bankruptcy in 2025, and its 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.
The Clippers vehemently deny any wrongdoing. "At the heart of this investigation are Joe Sanberg and Aspiration," the franchise said Thursday. "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."
The probe, conducted by outside counsel Wachtell Lipton at the NBA's request, could result in severe penalties if the league finds deliberate cap circumvention — including substantial fines, loss of draft capital, and potentially the voiding of a player contract. NBA Commissioner Adam Silver said last month that he wants to see a conclusion but stressed the importance of getting it right.
"There is no timetable," the NBA said Thursday through a spokesman, "but we expect the firm to finalize its work in the coming weeks."
For Toronto, the wait is about bringing back a franchise icon. The Raptors would send Brandon Ingram, Gradey Dick, two first-round picks, two second-round picks, and pick swaps to the Clippers for Leonard, who turned 35 earlier this month. Despite his age, Leonard just completed the highest-scoring season of his career, averaging 27.9 points across 65 games for the Clippers.
A seven-time All-Star and two-time NBA champion — he also won with San Antonio in 2014 — Leonard remains one of the league's most feared two-way players. He has maintained that no rules were broken.
"The Raptors remain eager to bring Kawhi back to Toronto and look forward to a swift resolution," the organization said.
Sources
- https://apnews.com/article/kawhi-leonard-raptors-clippers-trade-nba-investigation-98231279868294edfa483b52be50536a
