The Kawhi Leonard saga may not reach a resolution any time soon.
The NBA’s investigation into whether the Los Angeles Clippers circumvented the cap for Leonard could extend into 2027 if the parties fail to agree on the findings or a settlement that involves punishment to the team, ESPN’s Baxter Holmes reported Wednesday.
The Toronto Raptors agreed to acquire Leonard on July 31 in exchange for Brandon Ingram, Gradey Dick and a package of draft picks, but the teams decided that the trade will not be finalized until the investigation is complete.
The investigation, which is being led by law firm Wachtell Lipton, started in September 2025 and is now in its 11th month.
Per Holmes, the NBPA would likely take the matter to arbitration if the NBA imposes penalties without sufficient evidence that the Clippers circumvented the cap.
While the Clippers and Raptors both have stated that they intend to still go through with the trade, it remains unclear how a potential arbitration process might impact the deal, per Holmes.
Holmes further reported that, despite union director David Kelly believing the law firm has yet to uncover anything worthy of punishment, outside parties may not have accurate knowledge of Watchell Lipton’s findings to date, or that the length of the investigation does not necessarily indicate what the firm has or has not found.
Leonard has denied any wrongdoing, saying he didn’t receive all of the money he was owed from the company. The Clippers also strongly denied that any rules were broken and said they welcomed the league’s investigation.
The Clippers said that they have been “fully” cooperative with the 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.”
“At the heart of this investigation are Joe Sanberg and Aspiration. 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, who has been convicted and sentenced to 14 years in prison,” the Clippers said.
There is very little precedent for a CBA violation of this nature, with Joe Smith and the Minnesota Timberwolves scheme to duck the cap in the year 2000 with three consecutive low-cost, one-year deals, and the promise of a larger future contract, being the closest comparison.
In that situation, Smith’s contract was voided, the Timberwolves forfeited five first-round picks (two were later returned), and the team paid a then-record $3.5-million fine. Owner Glen Taylor was also suspended for a season and general manager Kevin McHale was forced to take an unpaid leave of absence.
Earlier this month, NBA commissioner Adam Silver said that his goal was for the investigation to be wrapped up “this summer.”
But also explained that the league was not going to the outcome to ensure they come to the right conclusion.
“My understanding is Wachtell is going through the information that they’ve gathered and drawing conclusions from that,” Silver said on July 14. “… It is complicated and complex; I understand why people who haven’t lived in these kinds of investigations are frustrated … we want to be able to answer to our team, and our fans, and all of you, that this is comprehensive.”
