Kawhi Leonard's Toronto Raptors return just took a major step forward

It appears Kawhi Leonard might soon finally rejoin the Toronto Raptors.

On Monday, ESPN's Baxter Holmes reported that the NBA's investigation found no evidence that LA Clippers owner Steve Ballmer funnelled money through team sponsors to pay Leonard as part of a salary-cap circumvention scheme.

The investigation stemmed from a September 2025 report from ESPN's Pablo Torre, which alleged that Aspiration, a now-bankrupt green banking company Ballmer invested in, provided the two-time NBA Finals MVP with a $28 million "no-show" endorsement deal off the books.

The new report indicates the NBA has allegedly ruled out that part of the investigation.

NEWS with @DVNJr, @ramonashelburne and @ShamsCharania: The NBA has found no evidence showing LA Clippers owner Steve Ballmer funneled money through team sponsors to pay Kawhi Leonard in order to circumvent the salary cap, sources tell ESPN. https://t.co/zmuTzWdAPd

— Baxter Holmes (@Baxter) August 17, 2026

The NBA issued a statement in response to the ESPN article, stating that the reporting contained "numerous and significant inaccuracies," and that the outcome of the investigation will be made clear upon its conclusion.

Either way, the league's investigation into Leonard and the Clippers isn't over quite yet.

According to Holmes, the NBA will continue to investigate whether the Clippers' introduction of Leonard to team sponsors constitutes a violation of the league's rules prohibiting salary-cap circumvention.

"The league is examining whether the Clippers are guilty of 'failure to supervise' employees, though it's unclear what specific rule the team would have violated or what the penalties would be," Holmes reported.

This investigation has kept Leonard from officially rejoining the Raptors.

On June 30, Toronto agreed to send Brandon Ingram, Gradey Dick, two unprotected first-round picks (2031 and 2033), and two second-round picks (2030 and 2033) to the Clippers in exchange for the 35-year-old small forward.

Nearly 10 days later, the Raptors asked the league to pause the trade while the NBA completed its investigation.

Leonard and the Toronto are both operating as though the trade will be completed and reunite him with the Raptors, Holmes reported.

It is unlikely that he will be announced as a Raptor until the investigation is complete, though Monday's report is certainly good news for Toronto fans.

Now, we just have to wait for the league to say he's completely innocent and make it official.