The Toronto Raptors and Los Angeles Clippers announced on Thursday the trade to send Kawhi Leonard back to the Raptors has been put on hold pending the results of an NBA investigation into the Clippers’ potential circumvention of the salary cap through a third-party company, Aspiration.
The two teams agreed to a trade on June 30.
“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 Raptors said in a 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.”
The Clippers’ release said the team has cooperated over the past 10 months with the investigation.
“At the heart of this investigation are Joe Sanberg and Aspiration,“ the Clippers said in a release. ”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.
“We recognize the uncertainty this has created and the impact it has had on our team, our fans, the Raptors organization, their fans, and the players whose futures remain affected while this process continues.
“We remain confident that, when the facts are evaluated fairly and thoroughly, the NBA will confirm exactly what we have said from the beginning: We have not done what we are accused of doing.”
The investigation into the Clippers stems from an episode of Pablo Torre’s Pablo Torre Finds Out podcast that revealed that Leonard allegedly received money through an endorsement deal with Aspiration, the now-defunct sustainability company, that was endorsed by Clippers owner Steve Ballmer.
At the heart of the investigation is whether or not the payment plan knowingly circumvented the NBA’s salary cap.
Leonard, 36, is set to enter the final season of his current deal with the Raptors and their 2019 NBA Finals Most Valuable Player expected to reach a two-year extension that could pay him up to $126 million.
As part of the trade, the Clippers were expected to receive Brandon Ingram and Gradey Dick, along with draft compensation.
