Kawhi Leonard contract investigation could extend into 2027

By Liam Tremblay — 30 July 2026 — 3 min read

Investigation into Clippers’ contract practices continues

The NBA‘s investigation into the Los Angeles Clippers regarding potential salary-cap circumvention in connection with Kawhi Leonard‘s contract has been ongoing for nearly 11 months. This inquiry focuses on the four-year, $176-million contract Leonard signed with the Clippers before the 2021 season. The situation has drawn attention from various parties, including the Toronto Raptors, who are involved due to a trade for Leonard that is currently paused.

Reports suggest the investigation’s timeline could extend significantly. Commissioner Adam Silver previously indicated a summer conclusion, but this may be optimistic. Sources close to the NBA Players Association (NBPA) have indicated that the process could potentially drag into 2027 if the Clippers and NBPA do not accept the league office’s findings and proposed remedies.

The complexity of the situation is amplified by the possibility of arbitration hearings and appeals if the league’s conclusions or penalties are not accepted by the involved parties. This could further prolong the resolution, potentially pushing it past the upcoming fall and into next winter. There is also the potential for the matter to spill over into the courts.

Details surrounding the inquiry

The investigation has broadened to include multiple aspects. A report mentioned that the inquiry is examining a second potentially problematic endorsement deal. Additionally, a podcast detailed an investment vehicle where Leonard, his former agent, and his uncle became minority owners in a Rhode Island-based minor-league soccer franchise with connections to Clippers owner Steve Ballmer and the team.

The Clippers have maintained that they have not engaged in any wrongdoing. They have denied allegations that they used a sponsorship with the now-defunct environmental bank Aspiration to funnel secret money to Leonard’s camp. Instead, the Clippers claim they were misled by Aspiration founder Joe Sanberg, who has since been convicted and imprisoned on multiple fraud charges.

The NBPA, under new executive director David Kelley, is actively involved, aiming to protect its members’ interests. Kelley has signaled that players will seek amendments to the current collective bargaining agreement, which was ratified in 2023, with new talks potentially starting in the summer of 2029. The NBPA’s involvement suggests they will not be passive observers in the process, especially concerning any outcomes that might affect Leonard’s earning potential, such as a suspension or the voiding of his contract.

Potential outcomes and precedents

If definitive evidence of salary-cap circumvention is found, the league would likely have presented its findings earlier. However, if the precise details needed for a conclusive finding are difficult to obtain, there might be enough circumstantial evidence to impose penalties on individuals such as Leonard’s former agent or uncle, Dennis Robertson. This could involve the Clippers sacrificing a front office executive, some second-round draft picks, and Ballmer paying a fine or making a charitable donation.

A precedent for salary-cap circumvention in the NBA dates back to 2000, involving the Minnesota Timberwolves and Joe Smith. In that case, the team was found to have a side deal with Smith. Then-Commissioner David Stern stripped Minnesota of five first-round picks, later reduced to three, and barred then-owner Glen Taylor and then-general manager Kevin McHale from the team for a year.

Given this precedent, the resolve of the NBPA and the Clippers to pursue arbitration might weaken if the facts strongly point towards a violation. A middle-ground punishment could involve a symbolic suspension for Leonard, a fine for Ballmer, and the forfeiture of future first-round picks. The Raptors are awaiting the resolution of this investigation before finalizing the trade for Leonard, who is expected to join the team in training camp on September 29 in Quebec City.

Source: sportsnet.ca