The potential trade of Kawhi Leonard from the Los Angeles Clippers back to the Toronto Raptors remains in limbo, seven years after Leonard departed the Canadian franchise in free agency. While a trade agreement has been in place for over two months, Leonard is still officially listed on the Clippers' roster, with uncertainty surrounding the timeline for its completion.
This delay is largely attributed to a federal investigation into the Clippers for allegedly circumventing the NBA's salary cap rules related to Leonard. The NBA previously concluded its own investigation on June 30, imposing a $30 million fine on the Clippers. Additionally, Clippers owner Steve Ballmer and president of business operations Gillian Zucker received one-year suspensions, while president of basketball operations Lawrence Frank was suspended for six months. Leonard was also fined $700,000 for improper benefits received, and his former business manager, Dennis Robertson, was banned from NBA business dealings for five years.
Despite the league's findings and penalties being known for over a week, the trade has not been finalized. The Raptors initially paused the deal on July 9, pending the outcome of the NBA's investigation, citing the risk of potential repercussions affecting Leonard. However, the resolution of the league's probe has not yet cleared the path for the transaction.
With training camp approaching, the situation carries a sense of urgency. Leonard was reportedly present at a Raptors player minicamp in South Florida this week but participated in a limited capacity due to the trade's unofficial status. The Clippers and Raptors are reportedly able to jointly submit the trade for league approval, but a significant hurdle remains within the Clippers' internal management structure.
Due to their suspensions, Ballmer, Zucker, and Frank are prohibited from participating in the franchise's operations. The NBA would likely need to approve Dennis Wong, who owns 1% of the franchise and is the only other permitted alternate governor, as an interim or temporary governor for the Clippers before the trade can be finalized. A potential conflict of interest exists, as Wong's investment firm previously sent $1.99 million to Aspiration Partners, one of the companies implicated in the Clippers-Leonard scandal. Aspiration Partners subsequently paid Leonard $1.75 million.
It remains unclear whether the NBA will approve Wong's interim role or who will manage the Clippers' basketball operations during Frank's suspension. Clarity on these matters may emerge during or after the NBA's Board of Governors meetings scheduled for Monday and Tuesday in New York. Until then, the stalled trade is expected to remain unresolved.