Why Raptors Trade For Kawhi Leonard Might Not Happen After All

The Toronto Raptors agreed in principle to a trade with the Los Angeles Clippers, but an investigation on Kawhi Leonard is preventing the completion of the deal.

Golden State Warriors forward Gui Santos defends Los Angeles Clippers forward Kawhi Leonard. | IMAGN IMAGES via Reuters Connect

The Toronto Raptors are building their team around Kawhi Leonard after agreeing to a trade with the Los Angeles Clippers, but the deal has not been finalized as of yet.

ESPN insider Shams Charania shared a statement from the Clippers in regards to what's preventing the deal from happening.

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.

In response, the Raptors released a statement of their own:

Kawhi Leonard trade to Raptors won't be completed until the investigation into the Clippers is complete. pic.twitter.com/C0AMrV3Imk

— Underdog NBA (@UnderdogNBA) July 9, 2026

What's Next For the Clippers and Raptors?

The Clippers are being investigated for possibly circumventing the cap to pay Leonard when he was a free agent. Allegedly, the Clippers sought out Aspiration to pay Leonard as a result of the team signing him in free agency. The Clippers are denying these allegations, but the league is making sure it does its due diligence on the matter.

If the league believes Leonard and the Clippers broke any rules, it could lead to major penalties and suspensions. All of that would certainly nix this deal, forcing Toronto to massively pivot off of their plans for the upcoming season and beyond.

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