Kawhi Leonard’s trade to the Toronto Raptors is on hold pending the outcome of the NBA’s investigation into whether the Los Angeles Clippers circumvented salary cap rules, the teams announced Thursday.
It does not necessarily mean that the trade is off. The Raptors said they still want Leonard, and the Clippers, in a statement sent to multiple outlets including The Associated Press, again insisted that they are not guilty of any wrongdoing related to an endorsement contract between Leonard and a now-bankrupt California-based digital bank that touted itself as environmentally friendly.
But the probe, as detailed by the terms of the collective bargaining agreement, could lead to penalties that include a substantial fine, the loss of draft capital — and, potentially, even the voiding of a player contract — if the league finds there was a deliberate circumvention of cap rules.
“The NBA league office informed us that as a result of the ongoing investigation involving the Clippers, we would assume the risk of any potential outcome of the investigation impacting Kawhi,” the Raptors said. “In light of this, we will wait until the league’s investigation is complete.”
There is no timetable for the conclusion of the NBA’s probe, which is being performed by outside counsel — Wachtell Lipton, a New York-based firm. Commissioner Adam Silver said in recent weeks that he’d like to see a conclusion.
“My instruction to them is we can’t be investigating forever. At some point you have to wrap it up,” Silver said last month at the NBA Finals. “But at the same time, the most important thing is that we get it right.”