Kawhi Leonard returns to Raptors as Clippers complete trade after NBA’s historic cap penalties

The Los Angeles Clippers and Toronto Raptors have completed the Kawhi Leonard trade first agreed on June 30, ending a two-month delay that followed the NBA’s investigation into salary-cap circumvention.

Toronto receives Leonard, the two-time Finals MVP who delivered the franchise its only championship in 2019. Los Angeles receives All-Star forward Brandon Ingram, guard Gradey Dick, unprotected first-round picks in 2031 and 2033, a 2027 first-round pick swap, and second-round selections in 2030 and 2033.

Leonard is entering the final season of the three-year, $149 million contract he signed with the Clippers in January 2024. He is expected to negotiate an extension with Toronto.

Investigation froze a June agreement

The clubs intended to process the deal in early July. Toronto paused after the league advised that the Raptors would assume any risk if the inquiry altered or voided Kawhi Leonard’s contract. The Raptors said they would wait until the investigation concluded.

On September 2, the NBA published its findings. Kawhi Leonard was neither suspended nor stripped of his contract. He was ordered to pay the league $700,000. The Clippers were fined $30 million, the largest team fine in league history, and forfeited first-round picks in 2029, 2030, 2031, 2032, and 2033. Chairman Steve Ballmer and president of business operations Gillian Zucker were each suspended for one year. President of basketball operations Lawrence Frank was suspended without pay for six months. Dennis Robertson, Leonard’s uncle and former business manager, was barred from NBA-related business for five years.

Investigators concluded the Clippers initiated off-court income opportunities between Leonard and four companies that did business with the club, including the now-bankrupt Aspiration Partners. The league said Leonard violated circumvention rules “through the conduct of” Robertson.

Commissioner Adam Silver framed the sanctions as a defense of the collective bargaining system. “The NBA’s collectively bargained system for determining player compensation is a fundamental component of the basketball competition that the league oversees for the benefit of the teams and players and ultimately the fans,” Silver said. “I am deeply disappointed by the flagrant violations of our rules and by the Clippers’ institutional and leadership failures that led to this misconduct. The severity of the penalties reflects the seriousness of the violations.”

Roster impact on both sides

At 35, Kawhi Leonard produced his highest-scoring season in 2025-26, averaging 27.9 points on 50.5 percent shooting with a seventh All-Star selection and All-NBA Second Team honors. His seven years in Los Angeles included regular-season success but only three playoff series victories and one Western Conference finals appearance in 2021, which ended when he tore his right ACL.

Ingram, 28, averaged 21.5 points, 5.6 rebounds and 3.7 assists last season after Toronto acquired him in February 2025 and earned his second All-Star berth. Dick, selected 13th overall in 2023, saw his role reduced last year. The Clippers will build around Ingram, two-time All-Star point guard Darius Garland and rookie Keaton Wagler under coach Tyronn Lue, with general manager Trent Redden and senior vice president Mark Hughes directing basketball operations during the executive suspensions.

The two first-round picks from Toronto remain on Los Angeles’ ledger even as the club loses five of its own. Toronto added Kyle Anderson and first-round pick Allen Graves this offseason and now returns a championship core piece to an Eastern Conference that is as competitive as any in recent years. The teams meet in a Vancouver preseason game on October 10, at Intuit Dome on November 2, and in Toronto on New Year’s Day.