Why the Clippers-Raptors Kawhi Leonard Trade Hasn’t Been Made Official Just Yet

Shams Charania explained why the Clippers-Raptors’ Kawhi Leonard trade hasn’t been made official yet. | Photo by Ronald Martinez/Getty Images

A little over a week after the Clippers announced they were shipping Kawhi Leonard to the Raptors in a blockbuster deal, there appears to be a new wrinkle in the trade going through.

ESPN’s Shams Charania reported Thursday afternoon that the Leonard trade “will not be complete” until the NBA’s investigation into the Clippers has concluded. The league has been investigating the organization for allegedly paying Leonard a $28 million endorsement deal in order to circumvent the salary cap back when Leonard signed with L.A. in 2019.

Here’s the Clippers’ full statement on the incomplete trade, via Charania:

“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.  

“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.”

Developing: The Los Angeles Clippers-Toronto Raptors trade centered on Kawhi Leonard will not be complete until the NBA investigation into the Clippers is over. Statement from the Clippers to ESPN:
 
For the past 10 months, our organization has fully cooperated with an NBA…

— Shams Charania (@ShamsCharania) July 9, 2026

The Raptors said in a statement via Charania, "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 Clippers’ Aspiration scandal casts doubt over Kawhi Leonard deal to Raptors

At the time of this writing, it remains unclear whether the trade will be finalized, pending the NBA’s ongoing investigation into the Clippers. If the league deems that the Clippers committed a violation, the organization could be slapped with any number of severe punishments.

In 2000, when the NBA found that the Timberwolves had an under-the-table agreement with Joe Smith, the No. 1 pick in the ’95 NBA draft, that enabled Minnesota to circumvent the salary cap, the consequences were harsh. The Timberwolves were stripped of five first-round draft picks (one that was later restored) and Smith’s contract was voided, among other punishments.

In late June, the Clippers sent Leonard back to Toronto in return for Brandon Ingram, Gradey Dick, two first-round picks, a first-round pick swap and two second-rounders. If the Clippers face any kind of draft capital docking, or if Leonard gets slapped with a suspension, it stands to reason that the Raptors could back out of the deal and the trade could be nixed.

For those in need of a quick refresher of the Clippers’ alleged crimes, the organization was the center of a tell-all investigative series by Pablo Torre who did a deep dive into owner Steve Ballmer and the Clippers’ ties to a now-bankrupt environmental company called Aspiration. Per Torre’s reporting, the Clippers facilitated a no-show endorsement deal with Aspiration that funneled $7 million a year into Leonard’s pocket, thus allowing L.A. to circumvent the cap.

Ballmer has since pled his innocence, claiming that he himself was defrauded by Aspiration and that he was the victim of a scam that he didn’t know about. A Wall Street Journal article later contradicted Ballmer’s claim that Aspiration was the one to first approach the Clippers about a Leonard deal.

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