Kawhi Leonard saga could keep Toronto Raptors in limbo until next year

The Toronto Raptors may have to wait quite a bit longer for the Kawhi Leonard trade to go through. 

Despite agreeing on a Leonard deal with the LA Clippers back in June, in a move that saw Brandon Ingram, Gradey Dick, two unprotected first-round picks in 2031 and 2033, a 2027 first-round pick swap, and two second-round picks going the other way, the trade has been put on hold. 

This is due to an ongoing league investigation into whether the Clippers used a third-party company to secretly pay Leonard outside the salary cap when they acquired him in free agency back in 2019.

Initially, it was expected that the investigation could wrap up rather quickly, but that doesn't appear to be the case anymore. According to a new report from ESPN's Baxter Holmes, this saga has the potential to span into 2027. 

"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," Holmes wrote on Wednesday. 

The trade was officially put on hold on July 9, after the NBA revealed that the Raptors would assume the risk of potential outcomes. 

Baxter went on to cite the 2023 NBA collective bargaining agreement, which outlines possible penalties for circumventing the salary cap that can include fines up to $7.5 million, the forfeiture of draft picks, the voiding of a player's contract, and a one-year suspension for any team personnel involved in the violation. 

Something that could make this saga drag on into the new year is a potential arbitration process. Baxter reported that if the two sides can't agree, the matter would be handed over to a neutral arbitrator, who would then make a ruling after a hearing. 

"After a hearing, the arbitrator's ruling would be subject to an appeals panel made up of three people jointly appointed by the NBA and the NBPA," Baxter wrote.

"The appeal panel decision is binding."

This would put a major dent in the Raptors' plans of having Leonard on the roster in time for the upcoming 2026-27 season. The move was expected to help push Toronto into contenders in the Eastern Conference, but not having him for at least the first half of the season could put that in danger. 

It certainly wasn't the expectation when the deal was initially agreed upon.