Even while new allegations swirl around it, nearly everyone in league circles — and particularly the LA Clippers and Toronto Raptors — want the alleged salary cap circumvention case about Kawhi Leonard and the Clippers to wrap up fast. However, if Leonard or the Clippers decide to fight any potential punishments, this saga likely would drag out into the season and maybe into 2027, according to a new report.
That’s because the NBA’s collective bargaining agreement says any cap-circumvention case — and potential punishments out of it — must go before a neutral arbitrator and, potentially, an appeals process. While NBA Commissioner Adam Silver can suggest punishments, the arbitrator would determine if the case has been made and if those punishments are appropriate to the offense.
Those appeals could drag out the process, reports Baxter Holmes of ESPN, who discussed a timeline that could run into next year.
Sources close to the National Basketball Players Association with knowledge of the investigation said the union wouldn’t hesitate to take the matter to arbitration if the NBA sought penalties without sufficient evidence proving the claim that the Clippers have denied since the league’s inquiry began nearly 10 months ago.
On July 9, NBPA executive director David Kelly told reporters in Las Vegas that he didn’t believe there was a “there, there” regarding whether the Clippers compensated Leonard through a $28 million endorsement deal that he signed in 2022 with the now-bankrupt green banking company Aspiration, which also had a 23-year, $300 million endorsement deal with the Clippers.
There are a lot of competing interests here. If the investigation finds sufficient proof that the Clippers and owner Steve Ballmer intended to circumvent the cap, Silver would have to come down hard on the team and its owner — but Ballmer has repeatedly professed his innocence and, by nature, is a fighter. He might not let this go. Then there is the players’ union, and potentially Leonard himself, appealing things depending upon the punishment.
The best-case scenario for the league might be a “plea bargain” deal where the Clippers and league agree to whatever potential punishments would be handed down. Whether that kind of agreement could be reached is another question.
The Clippers and Toronto Raptors agreed to a trade that would send Leonard back to Toronto — where he won a title in 2019 — for a package centered around Brandon Ingram. However, that trade is on hold because the Raptors, understandably, don’t want to trade for Leonard with the threat of a potential suspension hanging over him.
In Las Vegas for Summer League, Silver said that the entire case “needs to be wrapped up before the beginning of next season,” but even when he said it that timeline raised eyebrows around the league. Now that timeline seems optimistic at best, which leads to questions about the future of the Leonard trade to Toronto.
Leonard’s secret soccer team
One of the reasons Silver’s timeline seemed optimistic were reports that the investigation had widened beyond just the Aspiration endorsement — and may include a Rhode Island soccer team.
A new investigation by WPRI in Rhode Island and the Pablo Torre Finds Out podcast uncovered that Leonard, as well as his uncle and manager Dennis Robertson and former agent Mitch Frankel, all have been quiet, secret investors in the United Soccer League’s Rhode Island Football Club.
Leonard and his associates became involved around the same time that [Rhode Island FC founder Brett] Johnson was struggling to secure enough private financing to move ahead with construction of Rhode Island FC’s new 10,000-seat stadium in Pawtucket, which cost more than $130 million to build. The previously undisclosed role of Leonard underscores how little has been known about who was backing the stadium deal, even with tens of millions in taxpayer funds on the line. Rhode Island FC has never publicly disclosed the identities of its full ownership group.
Leonard’s quiet involvement here raises questions on a couple of fronts. One is simply publicity — when star athletes in other sports invest in the USL, the league and teams publicize it, as happened with Russell Westbrook, for example. It also happened when former Celtics big man Daniel Theis joined Rhode Island’s ownership group three years ago.
Potentially more interesting was something else reported by Torre: During 2019, when “uncle” Dennis reportedly was making extravagant and improper demands from teams recruiting a free agent Leonard — such as giving him a home, access to a private plane and, most concerningly, a no-show endorsement deal — one of them was to make him part owner of a professional sports team.
That is not proof that Leonard’s investment in the team isn’t legitimate or doesn’t come from his own pocket, it just is another question. RIFC founder Johnson said this to WPRI about Leonard and associates’ investment.
“They’re particularly interested in real estate, finding ways to invest in housing, particularly in low-income areas,” Johnson said.
The building of the stadium was supposed to come with other developments, such as a hotel and about 400 housing units. That housing has yet to be built, despite having received local approvals and some tax deals. The company has applied for more taxpayer subsidies.
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