The Kawhi Leonard trade back to Toronto is no longer just a basketball transaction.
It is now tied directly to the NBA’s ongoing investigation into the Los Angeles Clippers, Steve Ballmer, Aspiration and allegations of salary-cap circumvention that have hovered over the franchise for nearly a year.
The Clippers issued a lengthy statement after Shams Charania reported that Leonard’s planned trade to the Raptors has been delayed.
According to the Clippers, the deal was agreed to in principle on June 30, but cannot be finalized unless Toronto’s ownership group assumes the risk of any potential penalties connected to Leonard’s contract that could emerge from the NBA investigation.
At this time, Toronto is not willing to do that.
The Raptors wrote that the league office informed them that, because of the ongoing investigation involving the Clippers, they would assume the risk of any potential outcome affecting Leonard.
As a result, Toronto said it will wait until the investigation is complete before moving forward.
“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 team said.
That leaves Leonard in limbo, the Clippers’ blockbuster exit plan unfinished and the Raptors’ reunion with the 2019 Finals MVP on hold.
The Clippers, meanwhile, continue to strongly deny wrongdoing.
“For the past 10 months, our organization has fully cooperated with an NBA investigation,” the team said, noting that it has participated in dozens of interviews, provided tens of thousands of documents and allowed access to staff.
The organization also denied the central accusation in the case.
“We did not funnel money to Kawhi Leonard through Aspiration,” the Clippers said.
At the center of the investigation is Aspiration, the now-defunct green banking company co-founded by Joe Sanberg.
Sanberg pleaded guilty to federal fraud charges tied to a scheme prosecutors said defrauded investors out of $248 million. The Clippers’ statement described Sanberg as the architect of a fraud and said Ballmer, like other investors and business partners, was one of the victims.
That has been Ballmer’s position throughout the fallout.
Ahead of Sanberg’s sentencing, Ballmer’s attorney submitted a victim impact statement saying the Clippers owner lost his entire $60 million investment in Aspiration and suffered “immeasurable” reputational harm. The letter also said the Clippers lost out on a $300 million sponsorship agreement with Aspiration, along with roughly $20 million tied to carbon offset purchases.
Ballmer’s attorney argued that Sanberg targeted Ballmer because of his interest in environmental sustainability and used the relationship to attract other investors. The letter also said Ballmer had met Sanberg only once and pushed back against a civil lawsuit that added Ballmer as a defendant, calling the allegations against him baseless.
But the piece of the story that matters most to the NBA is Leonard’s reported $28 million endorsement agreement with Aspiration.
Players are allowed to have outside endorsement deals.
The question is whether the Clippers or Ballmer were involved in arranging a side deal that functioned as additional compensation to Leonard outside the salary cap. If the NBA determines that happened, it could classify the arrangement as cap circumvention, one of the league’s most serious violations.
Leonard has addressed the accusations publicly only once, denying wrongdoing and saying he understood the contract and services involved.
“I don’t deal with conspiracies or the click-bait analysts or journalism that’s going on,” Leonard said.
The NBA launched its investigation in September 2025 after reporting by Pablo Torre raised questions about Leonard’s Aspiration deal and whether it was connected to the Clippers’ relationship with the company.
The probe is being conducted by Wachtell, Lipton, Rosen & Katz, with attorney David Anders leading the review.
In a letter submitted before Sanberg’s sentencing, Anders said Sanberg had sat for two in-person interviews and provided documents and information relevant to the league’s investigation. Anders wrote that Sanberg’s cooperation helped investigators develop a more complete understanding of key events, while also stating that no promises were made in exchange for that cooperation.
That detail is important because it suggests the NBA investigation is not merely procedural. The league has reviewed documents, interviewed figures connected to the case and gathered information from Sanberg himself.
The potential consequences remain unclear.
The most infamous modern cap-circumvention case remains the Minnesota Timberwolves’ secret agreement with Joe Smith, which led the NBA to strip the franchise of first-round draft picks, fine the team and void Smith’s contract.
That happened more than two decades ago under David Stern, and Adam Silver’s approach may differ. Still, the precedent shows why the Raptors are hesitant to absorb any risk tied to Leonard’s contract before the investigation is complete.
For the Clippers, a fine would be survivable. Losing draft picks or facing restrictions that affect roster construction would be far more damaging, especially now that they are rebuilding after an era that never reached the heights the franchise imagined.
Leonard arrived in Los Angeles in 2019 after delivering Toronto its first NBA championship. The Clippers paired him with Paul George and appeared positioned to become a Western Conference power. Instead, injuries, playoff exits and instability defined the era. Now, even Leonard’s departure cannot be completed cleanly.
The proposed trade would send Leonard back to Toronto, where he remains a franchise legend, while the Clippers would receive Brandon Ingram, Gradey Dick, multiple first-round picks, a pick swap and second-round compensation.
But for now, the trade is frozen.
The Clippers say they expect it to be finalized once the investigation concludes. The Raptors say they still want Leonard back. The NBA has not announced its findings.
That means Leonard’s Los Angeles chapter is effectively over, but not officially closed.
And until the league delivers its ruling, the Clippers, Raptors and Leonard are all stuck waiting on the same thing: the final word on the Aspiration saga.
