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Toronto Raptors fans had to temper their excitement Thursday after a proposed trade to bring back superstar Kawhi Leonard was put on hold due to an ongoing investigation that could put his season in jeopardy.
The NBA opened an investigation in September following allegations first reported by journalist Pablo Torre that Leonard signed a $28-million US “no show” endorsement deal with Aspiration, a since-shuttered financial technology company, when he was with the Los Angeles Clippers.
Leonard was named Finals MVP when he led the Raptors to their 2019 championship, but signed with the Clippers the following season.
The proposed blockbuster trade, announced on June 30, would see the 35-year-old return to the Raptors in exchange for Brandon Ingram, Gradey Dick, two unprotected first-round picks, a 2027 pick swap and two second-round picks.
The endorsement deal
The Clippers agreed to a $300-million US endorsement deal with Aspiration in 2021. Months later, in April 2022, Leonard signed a $28-million sponsorship deal with the company.
In September 2025, Torre’s podcast reported on Leonard’s alleged “no-show” deal with Aspiration that required no work beyond staying with the Clippers.
A former Aspiration employee told Torre that the deal was made to get around the NBA’s salary cap, by using a third-party company to pay Leonard more than the cap allowed.
The NBA hired New York-based law firm Wachtell, Lipton, Rosen & Katz to investigate.
By the time the investigation launched, Aspiration was no more. The company declared bankruptcy in March 2025 after co-founder Joseph Sandberg was arrested on allegations of conspiring to defraud investors of at least $145 million US.
This June, Sandberg was sentenced to 14 years in prison.
What are the possible penalties?
Leonard has not been charged with any wrongdoing, but he could still face punishment under the league’s collective bargaining agreement, including the voiding of his contract — which would automatically make him an unrestricted free agent.
So, if the Raptors had finalized the trade and signed Leonard before the investigation was done, there was a chance they could have lost him to another team.
The Raptors said in a statement Thursday that they put the deal on pause after the NBA league office informed them they would “assume the risk of any potential outcome of the investigation.”
The Toronto Raptors are reportedly close to reacquiring Kawhi Leonard, who led the team to its first ever NBA Championship in 2019, in a blockbuster trade with the Los Angeles Clippers. Raptors sideline reporter Akil Augustine discusses what the reported move could mean for the team.
Ryan Gauthier, an assistant professor at Thompson Rivers University who specializes in sport law, told CBC News the worst-case scenario for the Raptors would be if the NBA took the rare step of suspending Leonard for a year under its “good character” clause. That would mean Leonard couldn’t play at all — for the Raptors or any other team.
Whether the league would go that far, he says, is “as much a political question as it is a legal one.”
If the Clippers are found to be in violation of league rules, they could face millions of dollars in fines, the loss of top draft picks and suspension of team personnel.
Gauthier says NBA commissioner Adam Silver will likely be hesitant to directly punish team owner Steve Ballmer, who is one of the richest owners in the league.
Team officials have maintained their innocence, saying they were the victims of fraud and are confident the investigation will exonerate the franchise.
When will fans know?
The Raptors and their fans could be in for a frustrating summer, with no definite end to the investigation and the NBA season slated to kick off in October.
According to CBS Sports, an NBA spokesperson said Thursday that the league does “not have a specific timeline for the conclusion of the investigation,” but expects the law firm to “finalize its work in the coming weeks.”
Gauthier says he expected the investigation to be wrapped up by Christmas, and is surprised it’s still ongoing.
“I don’t know if there’s a smoking gun,” he said. “I think if there was nothing there, this would have been done very, very quickly. I don’t know why it’s taking this long.”
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