The NBA's investigation into the Los Angeles Clippers' dealings with Kawhi Leonard, focusing on whether the team circumvented the salary cap through a $28 million endorsement deal with Aspiration, could continue until 2027.
The probe may extend into the new year if the league and the Clippers cannot agree on the investigation's findings or a settlement that includes penalties for the team. Aspiration previously held a 23-year, $300 million deal with the franchise before declaring bankruptcy.
NBPA executive director David Kelly stated that he had not seen evidence warranting punishment from the law firm Wachtell Lipton, which is leading the NBA's investigation. However, sources close to the NBPA cautioned against relying on outside knowledge of the findings, noting that the investigation's duration is not necessarily indicative of its outcome. The union indicated it would pursue arbitration if the NBA sought penalties without sufficient evidence.
Both parties can avoid arbitration if the NBA uncovers evidence of cap circumvention and all involved parties agree on both the findings and the proposed discipline. Potential punishments for such violations, according to the NBA's collective bargaining agreement, include team fines up to $7.5 million, forfeiture of draft picks, voiding player contracts, and suspensions of up to one year for involved personnel.
NBA Commissioner Adam Silver expressed a desire to conclude the investigation promptly, stating in July that it "needs to be wrapped up before the beginning of next season" and has taken "longer than I would have hoped."
The ongoing investigation has also placed a potential trade that would send Brandon Ingram, Gradey Dick, unprotected first-round draft picks in 2031 and 2033, a 2027 first-round pick swap, and two second-round picks from Toronto to the Clippers on hold. The Raptors were informed by the league office that they could be subject to any punishments handed down to Leonard.