The NBA has finally reached a verdict or something of that sort. An external Wachtell Lipton investigation found the Los Angeles Clippers guilty of a “pattern of misconduct,” breaking several major salary cap circumvention rules. Earlier this month, popular analyst Stephen A. Smith and a large portion of the enraged fanbase had called for Leonard to be banned for a year after learning of his alleged off-court activities. But in reality, he’s been fined, not banned.
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Leonard will be required to pay $700,000 from his own pocket after journalist Pablo Torre uncovered evidence of secret endorsement deals between the player and four other companies in the past few years. It prompted a full investigation and resulted in Leonard’s move to the Toronto Raptors going on hold. But the player has just broken his silence, dropping a major hint on his future.
“Integrity and respect for this game are fundamental to who I am,” Leonard wrote on Instagram. “I accept full responsibility for lapses in judgment by people within my inner circle and regret the distraction this situation has caused the fans and my family. I entered into my contract with the Clippers as well as the agreements in question in good faith, fully committed to fulfilling my obligations and with no knowledge of any intent on anyone’s part to circumvent the salary cap.
“For 15 years, my priority has been giving everything to my family, the game, and those I share the court with. As I return to Toronto, I am focused on what I can control, closing this chapter, and moving forward with a clean slate.”
That final line carries significance. Leonard is not simply addressing the allegations. He is openly revealing Toronto as the destination for his next NBA chapter. The trade was paused in early July after the NBA informed both teams that the Raptors would assume the risk/liability of any investigation-related outcomes affecting Leonard’s contract or eligibility. Both franchises then soon announced they’d wait for the probe to conclude before finalizing the deal.
Crucially, even though NBA Commissioner Adam Silver said last month that he expected the league to conclude the investigation ahead of the 2026-27 season, ESPN insider Baxter Holmes revealed the matter showed no quick signs of a resolution. But surprisingly, only over a month later, the verdict comes through.
Despite the six-digit fine, Leonard’s eligibility and contract are left intact. But there’s also no official talk about clearance on the Kawhi trade yet. Hours ago, though, insider Shams Charania said the veteran’s Toronto move is on track because the investigation that was considered the final barrier has ended.
As part of the earlier agreed deal in June, the Clippers planned to move him to the Raptors in exchange for Brandon Ingram, Gradey Dick, unprotected first-round draft picks in 2031 and 2033, a 2027 first-round pick swap, and two second-round picks.
Charania earlier said that despite being linked to multiple contenders this offseason, the Raptors were the “only place” Leonard would commit to on a long-term extension. The veteran currently has a guaranteed year left ($50.3 million) on his ongoing veteran extension.
Meanwhile, Toronto can presumably move forward with its plans to welcome back a player who helped deliver its first NBA championship in 2019. This time, into a re-organized roster with Scottie Barnes, RJ Barrett, Collin Murray-Boyles and Immanuel Quickley. Leonard is expected to slot right into the dynamic frontcourt to create another contender in the Eastern Conference.
On the other hand, the Clippers face much heavier consequences after the investigation. The league stripped LA of five consecutive first-round picks from 2029 through 2033. It has also handed owner Steve Ballmer a one-year suspension and imposed a $30 million organizational fine. Those penalties leave the franchise with substantially less flexibility to reshape its roster over the coming years.
In addition, the Clippers’ President of Business Operations Gillian Zucker and President of Basketball Operations Lawrence Frank received suspensions without pay. That creates a striking divide between Kawhi Leonard and his former team.
While the Clippers must absorb a punishment that could affect their franchise well into the next decade, Leonard can now fully turn his attention toward hooping up North. He had already begun engaging with fans in Toronto. Leonard hosted a youth basketball clinic at T.A.T. Stadium in Scarborough in January.
“Toronto is still in my heart,” Leonard said during a fan interaction before also hinting that “this won’t be the last thing. I’ll be doing something else out here.”
There appears to be nothing logically stopping the trade from happening now. The Clippers, meanwhile, have declared they’re going to fight back, and they “intend to vigorously challenge these findings and penalties through every avenue available to us and look forward to an ethical and impartial arbitration process.”
In a statement to the NBA, Ballmer’s attorney, David Kelley, called the latest punishment “gross injustice.”
If there’s one thing we’ve realized as basketball fans, nothing’s done until it’s actually done. So, what happens in the Kawhi-Clippers-Raptors saga next is anyone’s guess until the trade goes through.