One of the biggest trades of the offseason — Kawhi Leonard headed back to Toronto — is on hold until the investigation into alleged salary cap circumvention through former Clippers team sponsor Aspiration is completed.
The Raptors explained the reasoning behind putting things on hold — any potential punishment of Leonard (a suspension, for example) would fall fully on them if the trade went through this summer. The Raptors don’t want to take on that unknown risk, especially since the investigation should be ending soon (at least everyone hopes).
“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,” Toronto said in a statement announcing the pause. “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.”
The Clippers confirmed the news and, once again, professed their innocence in the case, in a statement released to ESPN’s Shams Charania.
“For the past 10 months, our organization has fully cooperated with an NBA 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.
“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 investigation is ongoing, and we expect the trade to be finalized following its conclusion.”
Last September, the NBA hired the law firm Wachtell, Lipton, Rosen & Katz to investigate Aspiration’s ties to the Clippers. This came after an investigation by Pablo Torre and the Pablo Torre Finds Out podcast. The allegation is that the Clippers and owner Steve Ballmer used the now-defunct former green bank Aspiration (a Clippers sponsor) to funnel extra money to Leonard — outside of the CBA and in addition to his salary — through a no-show endorsement contract where Leonard did nothing for his money.
Ballmer and the Clippers have denied any wrongdoing from Day 1 and reiterated that in their statement.
“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.”
When the investigation into the Clippers might conclude has been a cloud hanging over the team and the league all season. At his NBA Finals press conference, NBA Commissioner Adam Silver sounded ready to have the investigation wrapped up and on his desk.
“My instruction to them is, you know, we can’t be investigating forever, and at some point we have to wrap it up, but at the same time, I think the most important thing is we get it right,” Silver said last month.
When that investigation ends, it will be up to Silver to decide potential punishments, although the Clippers could (and likely would) appeal any punishment to a “system arbitrator” — a person selected by the NBA and players’ union — who would review the evidence and determine if Silver’s punishments fit the offense. The buzz in league circles is that the investigation found enough that Silver will come down hard on Ballmer and the Clippers, but not nearly as much on Leonard. That is all just speculation at this point.
Expect the trade to go through later this summer.
That trade sends Leonard to Toronto for Brandon Ingram, Gradey Dick, two unprotected first-round picks (2031 and 2033), a 2027 first-round pick swap, and two second-round picks (2030 and 2033).
It’s a great trade for Leonard, who is already talking contract extension with Toronto, and it could vault the Raptors near the top of the East if Leonard stays healthy and everything comes together. For the Clippers, it’s the first step in a retooling of the roster, and it’s a lot of picks — ones that belong to other teams and the league can’t take away in a punishment from the investigation.
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