The Clippers' trade with the Raptors for Kawhi Leonard will not be finalized until the NBA completes its investigation into whether the LA team circumvented the salary cap through irregularities.

The two teams agreed to a trade on June 30 that would send the All-NBA forward to Toronto in exchange for Brandon Ingram, Grady Dick, and first-round draft picks in 2031 and 2033.

The NBA’s investigation into the Clippers is focused on whether they circumvented the salary cap by funneling money to Leonard through the $28 million sponsorship deal he had with thenow-bankrupt “green” banking firm Aspiration, which also had a 23-year, $300 million sponsorship deal with the team. Clippers owner Steve Ballmer, who invested $60 million in Aspiration, denied that he was aware of Leonard’s agreement.

The Clippers, in a statement to ESPN on Thursday, said that the trade “can only be finalized if the Raptors’ ownership group assumes the risk of penalties related to Leonard’s contract, which could theoretically arise from the ongoing investigation.” They also state that “they did not funnel money to Leonard through Aspiration” and that “we were victims of a fraud orchestrated by Aspiration’s co-founder, Joe Sanberg,” who was found guilty and sentenced to 14 years in prison.

The Raptors, meanwhile, issued their own statement saying they would await the findings of the investigation rather than take that risk, but “remain eager to bring Leonard back to Toronto and look forward to a swift resolution for our players, our organization, and our fans.”

The player and his uncle and business advisor have been interviewed by investigators as part of the league’s investigation.

Leonard, who turned 35 this month, is coming off a season in which he averaged 27.9 points for the Clippers in 65 games. He is a seven-time All-Star, a seven-time All-NBA selection, a two-time NBA champion, and a two-time Finals MVP (winning in 2019 with Toronto and in 2014 with San Antonio).

*Photo source: AP