Ominous Report Revealed On Pending Kawhi Leonard Trade

According to an ominous report from ESPN, the whole LA Clippers/Kawhi Leonard cap circumvention drama might not get sorted out until... 2027??

If that's the case, it leaves the pending trade of Kawhi back to the Toronto Raptors in an ominous situation. 

The NBA's investigation into allegations of salary cap circumvention by the L.A. Clippers and Kawhi Leonard could extend to 2027 if there is no agreement on the findings of any proposed settlement that involves punishing the team, per @Baxter.

The wait could affect the Clippers'… pic.twitter.com/3XqX2gKFsA

— Yahoo Sports (@YahooSports) July 29, 2026

Baxter Holmes reports for ESPN:

The NBA investigation into whether the LA Clippers circumvented the salary cap to pay Kawhi Leonard could drag into 2027 if the parties don't agree on the findings or any proposed settlement that involves punishing the team, sources with knowledge of the case told ESPN on Wednesday.

He adds that the NBPA won't hesitate to take it to an arbitrator if the NBA looked to impose penalties without sufficient evidence proving the cap circumvention claims.

"On July 9, NBPA executive director David Kelly told reporters in Las Vegas that he didn't believe there was a 'there, there' regarding whether the Clippers compensated Leonard through a $28 million endorsement deal outside of his standard NBA contract. 

"When asked if he believed there was anything that the New York law firm Wachtell Lipton -- which is directing the NBA's investigation -- had uncovered that was worthy of punishment, Kelly replied, 'Not from anything I've seen.'"

If NBPA isn't happy with results/punishments, they would take it to arbitration, further threatening the pending Leonard trade to Toronto

If the matter goes to arbitration, that would involve hearings and appeals. That doesn't sound like something that's going to conclude in short order.

The Raptors and the Clippers agreed to put their pending blockbuster trade of Leonard to Toronto for Brandon Ingram & Gradey Dick on hold until the investigation is done and any potential punishment is revealed. 

But now it looks like the league could have a messy situation on its hands if the whole thing doesn't wrap up in the next two months or so. And that timeline is sounding less and less like a possibility.