Kawhi Leonard’s second stint with the Toronto Raptors is officially on hold.
The Raptors announced Thursday that the trade will not be finalized until the NBA’s probe into Leonard and the Los Angeles Clippers is finished.
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The NBA has been investigating Leonard and the Clippers for the past 10 months after reports that he received a multi-million endorsement deal with sustainability services company Aspiration in an alleged effort to circumvent league salary cap rules.
Toronto and Los Angeles agreed to a deal involving Leonard last month, with the Raptors receiving Leonard and the Clippers getting Brandon Ingram, Gradey Dick and several draft picks.
“On June 30, we reached an agreement in principle to trade Kawhi Leonard to the Toronto Raptors,” the Clippers said in a statement. “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.
“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.
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“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.”
Despite the holdup, Toronto said it is still committed to completing the trade after the investigation is over.
“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 team said in a statement.
Leonard, 35, spent the last seven seasons with the Clippers after signing as a free agent in 2019. He played the 2018-19 season with the Raptors before joining the Clippers, leading the team to 58 wins and a championship.
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