Clippers-Raptors trade put on hold pending investigation into Kawhi Leonard's alleged shadow contract; Toronto still eager to bring him back

The Clippers confirmed on July 10 that the deal involving Kawhi Leonard will remain pending until the NBA finishes probing potential cap circumvention by the team.

Probe halts proposed Clippers-Raptors swap for Kawhi Leonard

According to ESPN sources, the Clippers and Raptors had agreed to a trade framework back on June 30: LA would send the All-NBA forward to Toronto in exchange for Brandon Ingram, Gradey Dick, unprotected first-round picks in 2031 and 2033, a pick swap in 2027, and two second-round picks.

The Clippers issued a statement to ESPN today saying the trade "can only be completed if the Raptors' front office is willing to assume the potential penalty risk arising from Leonard's contract."

Toronto also released an official statement indicating it will not bear that risk alone and will wait for the league's final findings, but the team "still yearns to bring Kawhi Leonard back and hopes this matter can be resolved quickly to provide clarity for our players, management, and fans."

The league's investigation focuses on whether the Clippers used the now-bankrupt green finance company Aspiration to funnel money to Leonard as a way to circumvent salary cap rules. Leonard signed a $28 million endorsement deal with the firm, and the Clippers themselves had a 23-year, $300 million sponsorship agreement with Aspiration. Team owner Steve Ballmer injected $60 million into Aspiration but denies any knowledge of Leonard's endorsement contract details.

ESPN insiders say investigators have interviewed Leonard and his agent and uncle, Dennis Robertson. The probe is being handled by an external legal team with no set deadline. An NBA spokesperson stated: "We do not have a specific timeline for concluding the investigation, but we expect it to be completed within the next few weeks."

The Clippers reiterated today: "We have never funneled money to Kawhi Leonard through Aspiration. We ourselves are victims of a scheme orchestrated by Aspiration co-founder Joe Sanberg, who has been convicted and sentenced to 14 years."

The Clippers added in their statement: "We understand this situation has created significant uncertainty and affected our team, our fans, the entire Raptors organization and its fans, as well as several players whose futures remain in limbo. We remain confident that once the league conducts a thorough and fair review of all the facts, it will confirm what we have said from the beginning: we did not engage in the alleged violations."

Leonard, who turned 35 this month, had a career-best scoring season last year, averaging 27.9 points in 65 games for the Clippers. A seven-time All-Star and seven-time All-NBA selection, he owns two championships and two Finals MVP awards—one with the Spurs in 2014 and another leading the Raptors in 2019. He is also widely regarded as one of the league's elite defenders throughout his career.