The Kawhi Leonard situation: here is what we know

It’s now been over a month since the Kawhi Leonard trade (the second time around, anyway) went down, and the investigation is still ongoing. New information is coming out all the time, and it can get a little confusing at times, admittedly. Is he reporting to the Raps? Is he being returned to the Clippers? Will he be suspended?

So with that in mind, let’s break down everything we know so far about the Kawhi Leonard situation, and what could potentially happen.

What is already known

Before we dive in, let’s start with the basics. Essentially, a few days after the trade, the NBA told the teams to hold off on finalizing the deal due to an investigation into a report alleging that the Los Angeles Clippers circumvented the salary cap through a no-show endorsement deal with Aspiration, a green-energy banking company that went belly-up in 2025.

Interestingly, Aspiration’s owner, Joseph Sanberg, was arrested and sentenced to 14 years in prison for fraud, with Ballmer sending a letter to the judge sentencing Sanberg arguing against leniency in Sanberg’s sentencing, with Ballmer saying that he lost $60 million and suffered reputational harm (non-Clippers related) due to the fraud scheme.

Following the announcement of the investigation, and that the Raptors could assume risks of the penalties if the trade was filed, the Raptors issued a statement saying that if it was necessary, the team would assume said risks.

“In light of this, we will wait until the league’s investigation is complete” the team said. “The Raptors remain eager to bring Kawhi back to Toronto and look forward to a swift resolution for our players, our organization, and our fans.”

Following the trade being put on hold pending the Investigation, the league had told the two teams that the investigation was “done” and that all that remains is whether to impose a punishment. However, an ESPN report said the NBA’s investigation might stretch into 2027 if both parties can’t agree on the findings or on any proposed settlement that involves punishing the team. Because that’s promising.

New info

but wait, there’s more…

A report from Pablo Torre’s podcast Pablo Torre Finds Out hinted at a second hidden sponsorship, this time with sports video display company Daktronics, who did the Intuit Dome’s (admittedly cool) scoreboard. Torre’s insider noted that the sponsorship was “1000% a way” for the team to circumvent the salary cap.

However, this might not be entirely new information with the league. A report from The Athletic published a few weeks ago suggested that a second sponsorship was included in the NBA’s investigation. Most likely, I imagine that this

Michael Grange suggested within an article for Sportsnet that Kawhi’s contract with the Clippers might be voided. In fact, Grange also wrote that the most likely outcome would be that the NBA would enforce some version of its rules, while Kawhi would get to play for the Raps.

Honestly, I think the most likely punishment is for the Clippers to give up picks, pay a fine of some kind, and have Kawhi’s contract with the Clippers voided, along with the trade being nullified. I say this because there are reports that the league wants to maintain a relationship with Ballmer, and the NBPA wants to ensure that Leonard’s punishment is fair. Plus, the Raps would most likely sign him if he became a free agent anyway.

However, we’ll just have to wait and see what the NBA decides to do.