The trade of Kawhi Leonard from the Los Angeles Clippers to the Toronto Raptors is currently on hold due to an ongoing NBA investigation. The Clippers and Raptors released statements on Thursday (July 2) after reaching an agreement in principle on June 30. The NBA has stated that the deal cannot be finalized while the investigation is ongoing.

The investigation centers on allegations that the Clippers circumvented the salary cap through a $28 million endorsement deal involving Leonard and Aspiration Partners Incorporated. The Clippers have denied these allegations and stated that they have fully cooperated with the investigation over the past ten months. Meanwhile, the Raptors remain eager to acquire the two-time NBA champion but will wait for the investigation's conclusion.

Leonard, who played one year with the Raptors and won an NBA championship, has been with the Clippers since 2019. According to ESPN, the trade would send Leonard back to Toronto in exchange for Brandon Ingram, Gradey Dick, and several draft picks. Leonard's representatives have indicated that he would only sign an extension with the Raptors or the San Antonio Spurs if traded.

The Clippers are under scrutiny for allegedly funneling money to Leonard through his endorsement deal with Aspiration, a now-bankrupt company. Clippers owner Steve Ballmer has denied knowledge of Leonard's deal, and both Leonard and his uncle, Dennis Robertson, have been interviewed by investigators. NBA Commissioner Adam Silver emphasized the importance of concluding the investigation accurately, though no timeline has been provided.

The potential penalties for the Clippers could include fines, suspensions, or loss of draft picks. The Clippers have expressed a desire to retain Leonard, as stated by Clippers president Lawrence Frank, who said, "Our plan is to win with Kawhi."

The Raptors are reportedly offering Brandon Ingram and draft picks in the trade. Leonard, who turned 35 on Monday, is coming off a career year with the Clippers, averaging 27.9 points over 65 games. The investigation's outcome will determine the next steps for both teams involved in the trade.