Overview
- The Clippers and Raptors agreed in principle to the trade on June 30, but the NBA put finalization on hold because the league will not clear a deal that could expose Toronto to penalties from its ongoing investigation.
- The league hired Wachtell, Lipton, Rosen & Katz to investigate whether the Clippers used an Aspiration endorsement or other payments to sidestep the salary cap, and that probe has broadened to include reimbursements and a previously unreported second endorsement.
- Sources say the law firm’s work should be finished in the coming weeks and a ruling is expected after the Las Vegas Summer League, though the NBA has given no firm deadline.
- Possible penalties range from fines and personnel suspensions to forfeiture of draft picks or voiding Kawhi Leonard’s contract, an outcome that would collapse the trade and create major roster and cap disruption for both teams.
- The inquiry grows from Aspiration’s collapse and co‑founder Joe Sanberg’s fraud conviction and 14‑year sentence, and the Clippers say they were victims of that fraud while Leonard has denied wrongdoing.