Kawhi Leonard Trade Stalled as NBA Probes Clippers Salary Cap Circumvention

The Kawhi Leonard trade between the LA Clippers and Toronto Raptors sits in limbo. The NBA is investigating whether the Clippers circumvented the salary cap when they retained Leonard back in 2021.

Before the Raptors and Clippers even shook hands on the deal, the NBA gave Toronto a heads-up: proceed at your own risk. If the trade goes through and the league later voids Leonard’s contract, the Raptors would be on the hook for any penalties imposed on him.

Leonard’s deal runs through the end of the 2026-27 season. The probe into what the Clippers did with the salary cap has been running for over 10 months now.

The Clippers have had a rough go lately. They shipped out James Harden and Ivica Zubac at the trade deadline, and the team failed to make the playoffs the season before this investigation came to light.

Wachtell, Lipton, Rosen & Katz, a major law firm, is handling the investigation for the NBA.