The NBA has placed Kawhi Leonard’s trade from the Los Angeles Clippers to the Toronto Raptors on hold as it continues a 10-month investigation into allegations the Clippers circumvented the league’s salary cap through a $28 million endorsement deal
Kawhi Leonard’s trade from the Los Angeles Clippers to the Toronto Raptors remains on hold as the NBA continues its 10-month investigation into allegations the Clippers circumvented the league’s salary cap.
Meanwhile, the Clippers agreed to trade Leonard to Toronto on June 30, but the Raptors decided to wait until the league finishes its investigation rather than assume any potential penalties tied to Leonard’s contract.
Under the proposed deal, the Clippers would receive Brandon Ingram, Gradey Dick, unprotected first-round picks in 2031 and 2033, a 2027 pick swap and second-round picks in 2030 and 2033.
The investigation centers on allegations that Clippers owner Steve Ballmer attempted to bypass the salary cap by arranging a $28 million “no-show” endorsement deal for Leonard through Aspiration Partners Inc., allowing him to receive additional compensation outside of his NBA contract. Ballmer has denied any wrongdoing.
The Clippers said they cooperated with the NBA throughout the investigation.
“For the past 10 months, our organization has fully cooperated with an NBA investigation, participating in dozens of interviews, providing tens of thousands of documents, and facilitating access to our staff. While the process has been challenging, we have remained committed to transparency.”
The organization also denied allegations it funneled money to Leonard through Aspiration and instead blamed convicted fraudster Joe Sanberg.
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“We did not funnel money to Kawhi Leonard through Aspiration. Like many sophisticated investors, financial institutions, and business partners, we were victims of a fraud initiated by Sanberg.”
Federal officials said Sanberg participated in a $248 million scheme to defraud investors and lenders.
“This serial fraudster used his Cinderella-like background, impressive educational credentials and virtue signaling skills to swindle investors and lenders out of hundreds of millions of dollars,” said First Assistant U.S. Attorney Bill Essayli of the Central District of California.