Kawhi Leonard's planned return to the Toronto Raptors has been delayed while the NBA investigates allegations that the Los Angeles Clippers circumvented salary cap rules to pay him an additional $28 million.
The Clippers agreed on June 30 to send Leonard to Toronto in exchange for Brandon Ingram, Gradey Dick, unprotected first-round draft picks in 2031 and 2033, a 2027 first-round pick swap, and two second-round draft picks, as ESPN first reported. That deal remained incomplete days after the league's trade moratorium ended on July 6.
In a team statement provided to The Daily Mail, the Raptors revealed they put the trade on hold until the NBA finishes its probe into Leonard and the Clippers, an investigation that has already stretched 10 months and counting.
"Regarding our planned trade with the LA Clippers for Kawhi Leonard, 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 statement read. "In light of this, we will wait until the league's investigation is complete."
The trade agreement is not off. Team spokespeople reiterated Toronto's desire to reacquire Leonard, who won an NBA title with Toronto in 2019, noting Leonard should be heading back to Toronto unless the Raptors opt against the deal.
"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.
The Clippers agreed to send Leonard to Toronto for forward Brandon Ingram and other assets. Gradey Dick was also included in the transaction, leaving his future in Los Angeles looking uncertain while the trade remains frozen.
Clippers deny salary cap allegations
In their own statement, the Clippers once again denied any attempt to circumvent the salary cap in order to re-sign Leonard in 2022.
"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," the Clippers statement read. "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."
Aspiration partnership and investor lawsuit
The NBA has been investigating allegations that the Clippers circumvented the league's salary cap by funneling money to Leonard through an endorsement deal with Aspiration, a green banking company that has since gone bankrupt as its co-founder Joseph Sandberg admitted to defrauding investors out of $248 million.
Clippers owner Steve Ballmer is being sued in Los Angeles County by 11 of those investors, who accused him in court filings of skirting NBA salary-cap rules with the help of Aspiration. Ballmer, who was pictured sharing a laugh with Leonard after the All-Star signed with the team in July 2019, faces allegations of providing impermissible payments to Leonard.
The lawsuit was initially filed in July of 2025 without Ballmer's name among the defendants. However, in an amended complaint first revealed by podcaster Pablo Torre, the plaintiffs' attorneys accused the former Microsoft CEO of making a "corrupt deal" with Sandberg, who has already pleaded guilty to federal wire fraud charges.
The amended lawsuit accused Ballmer of working with Sandberg to make the company appear successful, enticing the plaintiffs to invest in Aspiration while helping to "hide the rampant fraud occurring." Additionally, with a $50 million cash infusion for Aspiration, Ballmer allegedly circumvented the NBA's salary cap by ensuring the investment would ultimately end up with Leonard. Ballmer later added another $10 million in March of 2023.
"These funds would be channeled through Catona [formerly Aspiration] to Leonard so that Ballmer could induce Leonard to re-sign with the Clippers by covertly paying him more than allowed by the NBA's salary cap rules," read the lawsuit obtained by Daily Mail.
The plaintiffs claim to have suffered more than $50 million in damages and are seeking a jury trial.
Past inquiries and Leonard response
The Clippers did announce a $300 million partnership with Aspiration in 2021, months before Leonard signed a four-year, $176 million extension with the team. However, the club ended the relationship after two years because the contract was in default.
The NBA previously investigated claims that Leonard's representatives asked for improper perks in violation of the league salary cap several years earlier, but did not find any violations.
As for the allegations involving Aspiration, Leonard has denied any wrongdoing and told reporters in September of 2025 he never received all the money he was owed from the company now known as Catona. Asked about the allegation he did nothing in exchange for his multi-million payout from Aspiration, Leonard told reporters: "I don't think it's accurate."
