The plan to move on from Kawhi Leonard hit a snag Thursday when the NBA league office held up the trade that would send him to the Toronto Raptors until the investigation of whether the team circumvented salary cap rules is complete.
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Additionally, the Raptors’ ownership group must assume the risk of penalties related to Leonard’s contract that could theoretically result from the ongoing investigation before the deal can be done.
In a prepared statement, the Clippers said that while the process of the 10-month investigation has been challenging, they expect the June 30 trade to be finalized following its conclusion.
Leonard allegedly accepted $28 million through an endorsement deal with Aspiration, a green banking company, which would go beyond the league’s salary cap. Owner Steve Ballmer invested $50 million in the company through his personal LLC in September 2011.
That month, the Clippers also signed a $300 million deal with Aspiration, making the company the first founding partner of the Intuit Dome.
Aspiration signed its endorsement deal with Leonard six months later, according to podcaster Pablo Torre, who said an unnamed Aspiration employee said Leonard’s sponsorship deal “was to circumvent the salary cap.”
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The team and Leonard have denied any wrongdoing.
“At the heart of this investigation are Joe Sanberg and Aspiration. We did not funnel money to Kawhi Leonard through Aspiration. Like many sophisticated investors, financial institutions, and business partners, we were victims of a fraud initiated by Aspiration co-founder Joe Sanberg, who has been convicted and sentenced to 14 years in prison,” the Clippers’ statement said.
“We recognize the uncertainty this has created and the impact it has had on our team, our fans, the Raptors organization, their fans and the players whose futures remain affected while this process continues,” the statement continued.
“We remain confident that, when the facts are evaluated fairly and thoroughly, the NBA will confirm exactly what we have said from the beginning: We have not done what we are accused of doing.”
The Raptors said in a statement that the team is willing to wait until the league’s investigation is complete before making any further moves.
“The Raptors remain eager to bring Kawhi back to Toronto and look forward to a swift resolution for our players, our organization and our fans,” the team said.
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