NBA Salary-Cap Probe
Raptors, Clippers Pause Kawhi Leonard Trade Amid NBA Salary-Cap Probe
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Key Points
1
The investigation centers on a sponsorship/endorsement structure with Aspiration—described as a now-defunct sustainability company—and was highlighted by Pablo Torre in his reporting, forming the core of the alleged salary-cap circumvention around Kawhi Leonard.
2
Clippers insist they did not funnel money to Kawhi through Aspiration and say they were victims of fraud by Joe Sanberg, who has been convicted and sentenced to 14 years in prison.
3
An independent law firm has been conducting the NBA probe for months, with no firm date for completion; the NBA board of governors was set to meet in Las Vegas amid the ongoing inquiry.
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There is a conditional path to completing the deal before the Aspiration investigation ends if the Raptors’ ownership group agrees to assume the penalties related to Kawhi’s contract.
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The NBA moratorium had been lifted by July 6, meaning the two sides could potentially finalize the trade after the investigation, rather than being blocked by the pause in free agency.
A blockbuster trade sending Kawhi Leonard back to the Toronto Raptors is on hold — and no one knows when it will close. The two teams agreed in principle on June 30 to a deal that would send Leonard to Toronto in exchange for Brandon Ingram, Gradey Dick, and multiple draft picks, according to NBC News. But the NBA's ongoing investigation into the Los Angeles Clippers has frozen the transaction indefinitely.
Both franchises confirmed on July 9 that they will not finalize the trade until the league's probe wraps up. The investigation centers on whether the Clippers used a now-bankrupt company called Aspiration to pay Leonard off the books — a violation of the NBA's salary-cap rules, Head Topics reported.
How Aspiration Allegedly Funneled Millions to Leonard
Under NBA rules, teams cannot use outside companies to secretly pay players extra money. That is exactly what the league is investigating. According to Daily Guardian, Leonard's corporate entity signed a four-year, $28 million endorsement deal with Aspiration — a green banking startup. The contract reportedly let Leonard "decline to proceed with any action" the company asked of him. In other words, he was paid $28 million to do nothing except play for the Clippers.
Clippers owner Steve Ballmer personally invested $50 million in Aspiration. When the company ran short of cash in March 2023 and missed payments to Leonard, Ballmer put in another $10 million. Investigative journalist Pablo Torre first exposed these links in September 2025 on his podcast. His reporting later won the 2026 Pulitzer Prize in Audio Reporting, NBC News reported.
Clippers Say They Were Victims, Not Perpetrators
The Clippers deny any wrongdoing. In a July 9 statement, the team said: "We did not funnel money to Kawhi Leonard through Aspiration." They argue that Ballmer's investment and Leonard's endorsement deal were separate agreements. The club claims it was deceived by Aspiration co-founder Joe Sanberg, who ran a $248 million fraud scheme, Head Topics reported.
Sanberg was sentenced to 14 years in federal prison in June 2026. Before sentencing, he cooperated with the NBA's outside investigators at law firm Wachtell, Lipton, Rosen & Katz. The firm's attorney David Anders stated that Sanberg's cooperation "substantially assisted our investigation" and helped develop "a more complete understanding of key events." Leonard himself said, "I think we're going to be in the clear. I'm not stressing," according to NBC News.
Raptors Would Absorb Penalties to Get the Deal Done
There is one path to closing the trade before the investigation ends. The NBA told the Raptors they could proceed if their ownership group agrees to take on all risk from any penalties tied to Leonard's contract. The Raptors released a statement saying the league "informed us that we would assume the risk of any potential outcome of the investigation impacting Kawhi," according to Daily Guardian.
For now, the Raptors have chosen to wait. Raptors chairman Larry Tanenbaum also serves as chairman of the NBA Board of Governors — giving the team a close view of the process and a strong reason to be careful. The NBA moratorium lifted on July 6, meaning nothing is blocking the trade except the probe itself, NBC News reported.
Trade Package Worth Multiple First-Round Picks Sits Frozen
The proposed deal is one of the biggest in recent NBA history. Toronto would send Ingram, Dick, unprotected first-round picks in 2031 and 2033, a 2027 pick swap, and second-round picks in 2030 and 2033 to Los Angeles, per Head Topics. In return, the Raptors would get Leonard, who averaged 27.9 points last season at age 35 and carries a $50.3 million salary for 2026–27.
With no firm timeline for the investigation's conclusion, both Ingram and Dick remain in limbo — unable to join either team's offseason programs. Commissioner Adam Silver said in June that the probe is "far along" but that the league must "get it right." Until Wachtell Lipton delivers its findings, the blockbuster stays frozen, NBC News reported.
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