Kawhi Leonard is returning to the Toronto Raptors after the Los Angeles Clippers agreed on Monday afternoon to finalize a long-delayed blockbuster trade, according to ESPN's Shams Charania.
The deal sends the two-time NBA Finals MVP back to Toronto in exchange for Brandon Ingram, Gradey Dick, two unprotected first-round draft picks, a first-round pick swap and two second-round picks.
The breakthrough ends months of waiting for both franchises. The two sides had reportedly reached an agreement earlier in the offseason, but the trade was put on hold amid a National Basketball Association investigation into the Clippers.
Federal investigation into Clippers payments
Last week, federal prosecutors in Brooklyn launched a criminal investigation into allegations that the Clippers skirted NBA salary-cap rules by funneling under-the-table payments to Leonard through third-party side deals.
The criminal probe followed the NBA's own investigation, which resulted in the league stripping the Clippers of five first-round draft picks, fining owner Steve Ballmer $30 million and suspending the former Microsoft chief executive for one year.
In response to the punishment, Ballmer and the Clippers are weighing a potential lawsuit or asking a judge to issue a restraining order, two sources told the Times.
Leonard's statement
Leonard addressed the investigation in a statement of his own. "Integrity and respect for this game are fundamental to who I am," he said.
"I accept full responsibility for lapses in judgment by people within my inner circle and regret the distraction this situation has caused the fans and my family," Leonard said.
"I entered into my contract with the Clippers as well as the agreements in question in good faith, fully committed to fulfilling my obligations and with no knowledge of any intent on anyone's part to circumvent the salary cap," he continued.
"For 15 years, my priority has been giving everything to my family, the game, and those I share the court with. As I return to Toronto, I am focused on what I can control, closing this chapter, and moving forward with a clean slate."
An emotional return to Toronto
The trade marks an emotional return for Leonard, who cemented legendary status in Toronto during his lone season with the franchise in 2018-19.
Leonard led the Raptors to their first and only NBA championship that year, capturing Finals MVP honors before departing in free agency for his hometown Clippers.
Now 35, the six-time All-Star will reunite with the franchise where he achieved his greatest triumph, sliding into a retooled Toronto core alongside Scottie Barnes as the Raptors look to reassert themselves as Eastern Conference title contenders.
Aspiration and the salary-cap scheme
The NBA had been investigating allegations that the Clippers circumvented the salary cap by funneling money to Leonard through an endorsement deal with companies including Aspiration, a green banking firm.
Aspiration has since gone bankrupt, and its co-founder, Joseph Sandberg, admitted to defrauding investors out of $248 million.
"The investigation found a pattern of misconduct and multiple significant rules violations by the Clippers organization, a prior offender of the salary cap circumvention rules," the league said in a statement.
Restitution and other penalties
Although he was not suspended, Leonard was ordered to pay $700,000 in restitution for improper benefits he and his uncle and representative, Dennis Robertson, received from the Clippers and other organizations.
The 35-year-old will not have any of his contracts voided as a result of the NBA investigation. Robertson, meanwhile, has been banned from any business dealings with the league.
Additionally, Clippers president of basketball operations Lawrence Frank has been suspended without pay for six months, while president of business operations Gillian Zucker received a one-year ban.
All of the punishments are binding, according to the league and the players' union.
