TORONTO – A Toronto-based authorized skilled says he was stunned by the most recent twist within the Toronto Raptors-Los Angeles Clippers commerce saga.
The Raptors and Clippers introduced in separate statements on Thursday {that a} proposed commerce that will carry all-star ahead Kawhi Leonard again to Toronto has been placed on maintain following the result of an investigation by the NBA into Leonard’s 2024 contract with L.A. Each statements mentioned that the Raptors would assume the danger of any potential penalties that come out of the investigation.
Russell Sanders, a accomplice at Aird and Berlis, mentioned he was shocked by the deal being paused.
“I used to be frankly shocked. I might have thought that was a difficulty that will have been vetted internally on each side earlier than the transaction was introduced,” mentioned Sanders, who’s a member of the agency’s sports activities and leisure teams.
“I don’t need to speculate, clearly, on what the punishment can be or how what it could appear to be, however I don’t see the Raptors going by means of with something if it could be so harsh that it wouldn’t be palatable for the crew to tackle a participant like that.”
The pending deal would ship Brandon Ingram, Gradey Dick, two unprotected first-round picks, a 2027 choose swap and two second-round picks to the Clippers for Leonard.
An investigation into Leonard’s present contract was opened by the NBA in September following allegations that Leonard signed a US$28-million “no-show” endorsement take care of Aspiration, an environmental monetary know-how firm, that required no work past remaining with the Clippers. Aspiration later entered chapter after its co-founder, Joe Sanberg, was charged with fraud, although Leonard has not been charged with any wrongdoing.
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“The Raptors don’t have any nexus to (the deal) in any way, so it could it could be fairly stunning if the Raptors needed to assume that type of legal responsibility related to one thing that occurred beneath one other proprietor’s roof,” mentioned Sanders, whereas permitting that Leonard may very well be going through a prolonged suspension that will make the commerce now not worthwhile or have his contract voided.
Sanders famous that there have been two vital wage cap circumvention controversies within the NHL and the NBA earlier than.
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Energy ahead Joe Smith, Minnesota Timberwolves proprietor Glen Taylor and normal supervisor Kevin McHale had been embroiled in controversy after the 1999-2000 NBA season. Smith was allegedly promised a multimillion-dollar deal if he agreed to 3 consecutive one-year offers beneath his market worth. That allowed the Timberwolves to retain his rights and exceed the cap to re-sign him. On the finish of the final one-year contract, Smith might have signed a brand new long-term contract that will have paid as a lot as $86 million.
After that backroom deal was uncovered then-NBA commissioner David Stern fined the crew $3.5 million, voided all three short-term contracts, barred Taylor from collaborating within the Timberwolves operations for a yr, and compelled McHale to take an unpaid go away of absence. Stern additionally stripped the crew of 5 first-round draft picks: 2001, 2002, 2003, 2004 and 2005, though the ’03 and ’05 picks had been finally returned.
Equally, hockey celebrity Ilya Kovalchuk agreed to a 17-year, $102 million deal to stick with the New Jersey Devils in July 2010 after testing the free-agent marketplace for 19 days. The contract was blocked by the NHL as a result of it circumvented the league’s wage cap. An arbitrator heard the Nationwide Hockey League Gamers’ Affiliation enchantment and in the end nullified the deal.
The Devils had been fined $3 million, a third-round draft alternative within the 2011 draft and one future first-round draft choose throughout the subsequent 4 seasons. New Jersey used its first-round picks in 2011 and 2012 and subsequently needed to give up its 2014 first-round choice. Nonetheless, the NHL introduced in March 2014 it could forgive a part of the effective and grant the Devils the thirtieth choose within the first spherical of the 2014 draft.
Neither of these incidents concerned a commerce, altering the dynamic of any doable punishment doled out by the NBA or one other skilled sports activities league confronted with an identical state of affairs.
“I might most likely use a helpful enterprise analogy right here, the place a purchaser purchases an organization that’s already beneath regulatory investigation, and the customer might not have precipitated the underlying conduct, however it might inherit a number of the penalties if the investigation later leads to penalties,” mentioned Sanders. “The NBA is making an attempt to find out whether or not any potential fallout is tied solely to the Clippers’ conduct, or whether or not it’s connected not directly to Kawhi’s contract and the taking part in standing following the commerce.”
The Raptors mentioned they may wait till the investigation is full earlier than shifting forward with the commerce.
The Nationwide Basketball Gamers Affiliation didn’t instantly reply to a request for remark made by The Canadian Press.
This report by The Canadian Press was first printed July 10, 2026.
© 2026 The Canadian Press
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