A new report explains how the NBA purposely allowed the Los Angeles Clippers to end up with egg on their faces if they were able to agree to a trade for Kawhi Leonard this summer.
The future of the seven-time All-Star has been one of the more notable stories this summer. Early on, rumors suggested that after a vintage season from Leonard in 2025-26, the Clippers were interested in adding a second star and making a playoff run next season. However, it was not long before those plans changed.
Reports suggested that LA wanted the 35-year-old to sign an extension. But at a team-friendly rate. Unsurprisingly, after a career year, Leonard was not interested. That immediately kicked off trade discussions with interested teams, and it was revealed late last month that Leonard would actually make an unexpected return to the Toronto Raptors this offseason.
What made the trade, and even the discussions, interesting was that there was still no resolution to the NBA’s ongoing investigation into accusations of salary cap impropriety by the Clippers when they inked Leonard to a free agent contract in 2019.
Reports have long suggested LA would be hit with serious penalties, including suspensions, lost draft picks, and even Leonard’s contract being voided. But after the two teams agreed to a deal, it seemed like maybe the punishment would not be as severe as many assumed.
Well, the basketball world found out on Thursday that something big is on the way when the Clippers and Raptors put the deal on pause after the NBA informed Toronto that they would incur some of the penalties levied after the completion of the investigation.
NBA kept LA Clippers in the dark about effect of Kawhi Leonard investigation on trade talks

So why would the Clippers even engage in trade talks with that hanging over their heads? It seems they were allowed to conduct discussions under the impression that any penalties would have no effect on a trade agreement, according to NBA insider Jake Fischer.
“The Clippers did so, sources say, under the impression from the league office that the eventual outcome of the NBA’s ongoing investigation into alleged cap impropriety involving Leonard and third-party business sponsor Aspiration would not have any impact on trading their star forward away,” Fischer reported on The Stein Line.
“The Stein Line has learned that only a trade call being scheduled this week that would have made the trade official led the NBA to inform the Raptors that they would have to just swallow any possible sanctions Leonard personally faces — such as a suspension or even the worst-case scenario of the remaining $50.3 million season on Leonard’s contract being voided — separate from any sanctions that the Clippers still potentially face.”
It sure seems like the NBA got a little revenge on the Clippers for embarrassing the league with the scandal. So this offseason, they set the franchise up to be embarrassed by not informing them of the investigation’s effect on any trade talks they had about Leonard this summer.