The blockbuster trade between the Los Angeles Clippers and Toronto Raptors involving Kawhi Leonard is now on hold due to the NBA’s investigation into into whether the Clippers circumvented the salary cap, according to a team announcement.
On June 30, the Clippers agreed to send Leonard back to Toronto in exchange for Brandon Ingram, Gradey Dick, unprotected first-round draft picks in 2031 and 2033, a 2027 first-round pick swap and two second-round picks.
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The Clippers came under fire last season when reports emerged suggesting they broke salary cap rules by funneling money to Leonard through a now-defunct company named Aspiration.
Shortly after, the league hired an independent law firm to investigate these claims.
In their lengthy statement on Thursday, the Clippers maintained their innocence.
“On June 30, we reached an agreement in principle to trade Kawhi Leonard to the Toronto Raptors,” their statement read. “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.”
“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 investigation focuses on a $28 million endorsement deal Leonard reportedly had with Aspiration, as well as a $300 million partnership between the company and the Clippers.
While their is currently no timetable for a conclusion, an NBA spokesperson said the firm’s work is expected to be finalized in “the coming weeks.”
James Parker is a sports writer for Ball Exclusives, follow him on X @TheJames_Parker
