The Toronto Raptors and Los Angeles Clippers have paused their blockbuster trade involving Kawhi Leonard, pending the conclusion of an NBA investigation into potential salary-cap circumvention. The teams, who agreed to the deal on June 30, confirmed Thursday that they will wait for the league’s final ruling before proceeding with the transaction.
Aspiration Fund Adviser LLC Allegations Against the Clippers
The NBA Investigation into Aspiration and Salary Cap Rules
The league’s inquiry, which began last offseason, centers on allegations that the Clippers may have bypassed salary cap restrictions through a $28 million endorsement contract between Leonard and Aspiration Fund Adviser LLC, a company that filed for bankruptcy earlier this year. The investigation follows a series of podcasts released by journalist Pablo Torre alleging that Clippers owner Steve Ballmer illegally circumvented the salary cap in order to pay Leonard through the now-bankrupt company. The Clippers have repeatedly denied the allegations.
Toronto Raptors Directive on Contractual Risk
The Raptors’ Stance on Risk and Contract Liability
The trade’s delay stems from a directive issued by the NBA league office. The Raptors announced that the league informed them they would be required to assume the risk of any potential outcome resulting from the investigation, including the possibility that Leonard’s contract could be voided.
“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 Raptors stated.
By waiting, the Raptors avoid inheriting a situation where they could lose their newly acquired star or face league-imposed sanctions. Depending on the investigation’s findings, Leonard’s contract could potentially be voided. Should the investigation yield no discipline, the trade will seemingly proceed as scheduled. For now, Leonard remains a Clipper, while Brandon Ingram and Gradey Dick remain in Toronto. Notably, Leonard attended Kyle Lowry’s retirement press conference in Toronto earlier this week, and the Clippers brought Dick into the team’s facility at the Intuit Dome on Monday.
Adam Silver’s Oversight of the Independent Probe
League Context and Independent Oversight
NBA commissioner Adam Silver indicated before Game 1 of the NBA Finals last month that the league hoped the investigation would soon reach its conclusion. The probe is being performed by a law firm independent of the NBA.
“The investigation has been conducted by a law firm independent of the NBA,” Silver said. “Yes, ultimately we’re paying their bills, but they are doing the work independent of the league office, and my instruction to them is we can’t be investigating forever, but at some point, we have to wrap it up. But at the same time, the most important thing is that we get it right.”
Silver added that the league is far along in the process. “I think it’s clear they’re far along. I think those reports are reading all the time from people who are being interviewed by them, and I think they understand that you can keep going on and on. But I think we’re close to the point now where I think we need to wrap this up because you also need finality. Their team has to understand what the situation is they’re going to be operating under, and so do the other 29 teams.”
Board of Governors Meeting in Las Vegas
Impact on Trade Assets and Team Stakes
The proposed deal reunites Leonard with the franchise with which he won the 2019 NBA title. Leonard, who turned 35 earlier this month, is coming off the highest-scoring season of his career, averaging 27.9 points for the Clippers in 65 games. He is a seven-time All-Star, seven-time All-NBA selection, and a two-time NBA champion. The Clippers are set to receive Brandon Ingram, Gradey Dick, unprotected first-round picks in 2031 and 2033, a pick swap in 2027, and two second-rounders (2030 and 2033) if the deal goes through.
The Clippers, in a statement, acknowledged the investigation and the extent of their participation, noting they were informed by the league of “the risk of penalties related to Kawhi’s contract that could theoretically result from the ongoing investigation,” which Toronto would inherit. Sportsnet reported Thursday that unless Leonard’s contract is voided, the deal is expected to ultimately go through. The hope is that a resolution is reached by next Tuesday’s Board of Governors meeting in Las Vegas.
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