The agreed-upon trade between the Toronto Raptors and Los Angeles Clippers cannot be finalized until the NBA completes its investigation into Leonard and the Clippers, the Raptors announced Thursday.
“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 team said in a press release. “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.”
ESPN’s Shams Charania reported Thursday that the two sides were set to have a trade call earlier this week to finalize the deal, but the league ended up delaying the call and decided that the teams “will not be coming forward unless the Raptors assume the risk of potential outcomes that come from that investigation.”
The Raptors reportedly sent Brandon Ingram, Gradey Dick, two first-round picks and two second-round picks to the Los Angeles Clippers to bring back Leonard, who won Finals MVP for Toronto in 2019.
“On June 30, we reached an agreement in principle to trade Kawhi Leonard to the Toronto Raptors. We have since been informed that the trade can only be finalized if the Raptors’ ownership group assumes the risk of penalties related to Kawhi’s contract that could theoretically result from the ongoing investigation,” the Clippers said in a statement provided to Charania.
“The investigation is ongoing, and we expect the trade to be finalized following its conclusion.”
An NBA spokesperson told Charania and other reporters that “We don’t have a specific timeline for the conclusion of the investigation but expect the firm to finalize its work in the coming weeks.”
Last September, a report by journalist Pablo Torre alleged the team violated the NBA’s salary cap rules involving a $28 million endorsement contract between Leonard and the now-bankrupt California-based sustainability services company called Aspiration Fund Adviser LLC.
Leonard has denied any wrongdoing, saying he didn’t receive all of the money he was owed from the company. The Clippers have strongly denied that any rules were broken and said they welcomed the league’s investigation, which is being run by an outside firm.
On Thursday, the Clippers said that they have been “fully” cooperative with the investigation, “participating in dozens of interviews, providing tens of thousands of documents, and facilitating access to our staff. While the process has been challenging, we have remained committed to transparency.”
“At the heart of this investigation are Joe Sanberg and Aspiration. We did not funnel money to Kawhi Leonard through Aspiration. Like many sophisticated investors, financial institutions, and business partners, we were victims of a fraud initiated by Sanberg, who has been convicted and sentenced to 14 years in prison,” the Clippers said.
Leonard, now 35, has one year left on his contract worth $50.3 million. He is eligible for an extension of up to two years and and $123.7 million, per ESPN. He hired a new agent earlier in the week — Harrison Gaines of SLASH Sports — as he eyes a new deal.
Gaines has also represented Leonard as his business attorney. The nine-time all-star previously had Mitch Frankel as his agent, who worked alongside Leonard’s uncle, Dennis Robertson, to handle his affairs.
— With files from the Associated Press
