Kawhi Leonard is set to return to the Toronto Raptors as part of a trade that follows the NBA's disciplinary action against the Los Angeles Clippers for violating league salary cap rules.
The deal, initially agreed upon in June but delayed due to the NBA's investigation, will send Leonard back to Toronto in exchange for the Raptors' 2031 and 2033 unprotected first-round picks, along with a 2027 first-round pick swap, according to ESPN's Shams Charania.
The NBA's investigation found that the Clippers violated salary cap rules, with allegations that Leonard received impermissible benefits, including a $28 million payment for a "no-show job," as a means to circumvent the cap.
As a result of the violations, the NBA stripped the Clippers of five first-round picks: their own in 2031 and 2033, and additional picks in 2029, 2030, and 2032. However, the Clippers will still receive the first-round picks from Toronto in the trade.
Clippers owner Steve Ballmer received a one-year suspension from all league and team activities and was fined $30 million. Lawrence Frank, the team's president of basketball operations, was suspended without pay for six months, and Gillian Zucker, president of business operations, received a one-year unpaid suspension.
Leonard also faces discipline, including a $700,000 fine from the NBA. His business advisor, Dennis Robertson, has been banned from future dealings with the league.
Leonard issued a statement acknowledging lapses in judgment by individuals in his inner circle and expressing regret for the distraction. He stated that he entered into his contracts in good faith and without knowledge of any intent to circumvent the salary cap. He added that he is focused on closing this chapter and moving forward with a clean slate as he returns to Toronto.
In addition to the player and team sanctions, the league found Ballmer knowingly sought to help Leonard obtain off-court income opportunities and approved a business deal that was a precondition for an endorsement agreement, failing to ensure his organization abided by circumvention rules.
Leonard, who helped the Raptors win the 2019 NBA title, averaged 27.9 points, 6.4 rebounds, and 3.6 assists per game in 65 contests for the Clippers last season, making his seventh All-Star appearance.