A significant offseason trade involving Kawhi Leonard has been put on hold as the NBA investigates allegations that the Los Angeles Clippers circumvented salary cap rules. The Toronto Raptors, who had agreed to acquire Leonard, have suspended the deal until the league concludes its probe.
The Raptors revealed in a statement that the NBA informed them they would "assume the risk of any potential outcome of the investigation impacting Kawhi." Consequently, the team stated, "we will wait until the league's investigation is complete." Despite the pause, the Raptors reiterated their desire to reacquire Leonard, who previously won a championship with the team in 2019.
The trade, which reportedly sent Brandon Ingram, Gradey Dick, and multiple draft picks to Toronto, has remained incomplete since the league's trade moratorium ended on July 6. The NBA's investigation, which has been ongoing for approximately 10 months, centers on claims that the Clippers funneled $28 million to Leonard through an endorsement deal with Aspiration, a green banking company that has since gone bankrupt. Joseph Sandberg, Aspiration's co-founder, has admitted to defrauding investors.
In addition to the league's investigation, Clippers owner Steve Ballmer is facing a lawsuit from 11 investors who allege he skirted NBA salary-cap rules with Aspiration's assistance. An amended complaint filed in Los Angeles County names Ballmer, accusing the former Microsoft CEO of making a "corrupt deal" with Sandberg, who has pleaded guilty to federal wire fraud charges. The lawsuit claims Ballmer worked with Sandberg to make Aspiration appear successful to attract investors while allegedly helping to hide fraud. It further alleges that Ballmer's $50 million cash infusion into Aspiration, followed by another $10 million in March 2023, was intended to channel funds to Leonard, thereby covertly paying him more than NBA salary cap rules allowed to induce him to re-sign with the Clippers.
The plaintiffs in the lawsuit claim to have suffered over $50 million in damages and are seeking a jury trial.
The Clippers initially announced a $300 million partnership with Aspiration in 2021, months before Leonard signed a four-year, $176 million contract extension with the team. However, the partnership was terminated after two years due to the contract being in default.
The Clippers have denied any wrongdoing, expressing confidence that the league will confirm they have not violated any rules. Leonard has also denied any personal culpability, stating in September 2025 that he never received all the money owed to him by Aspiration and that the allegation he did nothing in exchange for the payout was inaccurate.
This is not the first time Leonard has been involved in a salary cap investigation. The NBA previously examined claims that his representatives sought improper perks several years prior but found no violations.