What Raptors fans need to know about Kawhi Leonard’s potential suspension in Clippers contract scandal originally appeared on The Sporting News.
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As Kawhi Leonard returns to Canada with a trade from the LA Clippers to the Toronto Raptors, the star forward is still under investigation by the league.
Leonard and the Clippers were at the center of a cap circumvention scandal that was first reported in September of 2025, leading to the NBA opening an investigation. Entering this offseason, the NBA has not made a decision on a punishment for anybody involved, so this trade offers a new wrinkle to the situation.
While the Raptors are acquiring a player currently under investigation, the team’s risk of being caught in the investigation is still pretty low. Here’s a breakdown of what the investigation means for the Raptors.
MORE: Kawhi Leonard Raptors-Clippers trade details
Is Kawhi Leonard still being investigated?
The NBA has been investigating Kawhi Leonard and the Clippers since last September, and the 2025-26 season concluded without the league coming to a conclusion.
Kawhi Leonard Clippers contract scandal
Leonard’s contract scandal with the Clippers stems from when Leonard left Toronto to sign with Los Angeles in 2019. Part of the initial contract reportedly included Leonard and his uncle, Dennis Robertson, ownership stakes, corporate sponsorships and “no show” endorsement deals that meant Leonard could rake in millions of dollars while doing nothing in return.
Pablo Torre investigated the contract negotiations and centered his investigation on Aspiration, a “tree brokerage” firm founded by Clippers owner Steve Ballmer that filed for bankruptcy in 2025. Leonard’s connection with Aspiration seemingly was meant as a way for Leonard to earn tens of millions more dollars from Ballmer while the Clippers simultaneously circumvented the salary cap.
Both Leonard and the Clippers have downplayed the connection with Aspiration and have maintained that everything was above board.
MORE: Projecting the Raptors lineup with Kawhi Leonard
Will the NBA punish Kawhi Leonard?
Leonard is still at risk of being punished by the NBA depending on how much the league determines Leonard played a role in the scandal. Considering the nature of the scandal is different than typical NBA investigations, it is unclear how the league would go about punishing Leonard if he is no longer a member of the Clippers organization.
It helps that outgoing Raptors CEO Larry Tanenbaum serves as chairman of the NBA’s Board of Governors, and thus will have a say in the NBA’s eventual ruling. At the very least, Toronto should have an understanding of how the league would approach punishing Leonard.
One reminder about Kawhi + Toronto:
Outgoing Raptors owner Larry Tanenbaum is chairman of NBA’s Board of Governors.
Per @michaelgrange (9/12/25): “It will be Tanenbaum who will presumably have a voice in what – if any – sanctions are levelled against Ballmer and the Clippers.” https://t.co/25O7H8492lpic.twitter.com/ie3XSFFjn8
— Pablo Torre 👀 (@PabloTorre) June 30, 2026
However, the NBA’s investigation appears more focused on the Clippers, with punishments more likely to impact the Los Angeles organization instead of Leonard as an individual.
Will the NBA punish the Raptors?
The only punishment that the Raptors could face in regard to the Leonard investigation is anything that directly impacts Leonard while Leonard is on the team. The NBA has to approve the trade, and as long as that happens, the league will have presumably cleared the way for Toronto to acquire Leonard’s contract.
The Clippers, meanwhile, are at risk of getting fined millions of dollars and losing draft picks for circumventing the salary cap, and Clippers executives are at risk of being suspended.
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Will Kawhi Leonard investigation impact Clippers-Raptors trade?
The NBA will need to approve the trade from Leonard to the Raptors, and there’s a possibility that Leonard’s contract with the Clippers is voided as a result. However, Leonard no longer being on Los Angeles likely changes punishment possibilities to make sure only the Clippers get punished.
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