The proposed trade that would return Kawhi Leonard to the Toronto Raptors has been put on hold, with both the Raptors and the Los Angeles Clippers confirming that the deal cannot be completed until the NBA concludes an investigation into whether the Clippers circumvented salary-cap rules. In a statement, the Raptors said the league office had informed them they “would assume the risk of any potential outcome of the investigation impacting Kawhi” and that they would wait for the probe to finish. The Clippers, for their part, said they had been told the trade could only be finalised if Toronto’s ownership accepted that risk, and they expect the transaction to proceed once the investigation ends.

The investigation, which began in September, was triggered by a podcast report detailing a US$28 million endorsement contract between Leonard and Aspiration, a financial-technology firm that described itself as offering socially conscious banking. Clippers owner Steve Ballmer invested $60 million in the now-defunct company, and the Clippers announced a $300 million sponsorship deal with Aspiration in 2021. The league is examining whether the team helped arrange the side agreement as a way to deliver off-the-books compensation to Leonard, a potential violation of the collective bargaining agreement that could carry a fine of up to $7.5 million and the loss of a first-round draft pick.

Viewed from Los Angeles, the Clippers have denied any wrongdoing, stating they “did not funnel money to Kawhi Leonard through Aspiration” and describing themselves as victims of a fraud orchestrated by Aspiration co-founder Joe Sanberg, who has been convicted and sentenced to 14 years in prison. The team said it had cooperated fully, providing tens of thousands of documents and participating in dozens of interviews. The law firm Wachtell Lipton is conducting the investigation independently, and NBA commissioner Adam Silver said in early June that he had instructed the firm to wrap up its work in a timely fashion, noting that “the most important thing is that we get it right.”

The trade package agreed on 30 June would send forward Brandon Ingram, guard Gradey Dick, two unprotected first-round picks, a 2027 pick swap and two second-round picks to the Clippers for Leonard. The 35-year-old forward, who led the Raptors to their only championship in 2019 before departing in free agency, is coming off a career-high scoring season, averaging 27.9 points in 65 games. He made a public appearance in Toronto on Tuesday for Kyle Lowry’s retirement ceremony, a moment that underscored the emotional pull of a reunion.

For now, both franchises are in limbo. The Raptors said they remain “eager to bring Kawhi back to Toronto” and look forward to a swift resolution. The Clippers expressed confidence that the facts will exonerate them. The league has given no timetable, but the sentencing of Sanberg has removed one obstacle, and Silver’s public push for finality suggests a conclusion may be near. Until then, the trade that would reshape the Eastern Conference remains a transaction on paper only.