Now, according to ESPN’s Shams Charania, Leonard has agreed to a two-year, $115 million contract extension with the franchise. The deal also includes a player option for the 2028-29 season.

The 35-year-old, two-time NBA champion now has a total of three years and $165 million on his Raptors deal. Ultimately, Kawhi got his way by joining the franchise he desired without receiving major discipline from the NBA, which received support from Steph Curry, and landing a massive contract that makes the league’s fine feel insignificant.

Leonard returns to Toronto

The Toronto Raptors acquired Kawhi Leonard from the LA Clippers during the offseason in exchange for a high-value package that included Brandon Ingram, Gradey Dick, two unprotected first-round picks (2031 and 2033), a 2027 first-round pick swap, and two future second-round picks (2030 and 2033).

Both sides agreed to the deal in June, but the NBA’s investigation into the Clippers’ salary cap circumvention scandal delayed its finalization for months. The transaction was completed shortly after Clippers owner Steve Ballmer issued a statement apologizing and taking full responsibility for his team’s violations regarding Leonard, which resulted in the most severe punishment in NBA history.

Kawhi Leonard returns to his former stage and will once again lead the Toronto Raptors in this second stint. He is remembered for leading the franchise to its first NBA title in the 2018-19 season, delivering one of the most epic single-season runs in sports history before returning home to Los Angeles.

Last season, Leonard averaged career highs of 27.9 points, 6.4 rebounds, and 3.6 assists per game in 65 contests, providing a decisive boost to Toronto’s title aspirations alongside Scottie Barnes, a key pillar of the team.

Key takeaways

• A two-year, $115 million extension was agreed upon with Toronto by Kawhi Leonard.
• Brandon Ingram and Gradey Dick were traded to Los Angeles in the transaction.
• Salary cap circumvention violations delayed finalization following an NBA investigation.

According to The Stein Line’s Jake Fischer, the Raptors and Leonard have engaged in advanced discussions and are closing in on an extension agreement, following the punishments made by the NBA.

While specific terms have not been finalized, Fischer notes that Leonard is eligible for a maximum two-year extension worth up to $126 million. Coming off the league’s high-profile investigation into his former team’s cap practices, securing a deal of that caliber would represent a massive financial commitment by Toronto for the veteran superstar.

As fellow stars like Stephen Curry weigh in on the league’s sanctions against the Los Angeles Clippers, anticipation builds over how the situation will develop, especially with potential legal issues looming in the background as Leonard takes the floor for Toronto.

Leonard’s past contract and highlights with the Raptors

Leonard’s original tenure with the Raptors remains one of the most iconic single-season runs in NBA history, defined by load-management precision, dominant play, and the franchise’s first NBA title.

At the time, Leonard was in the final guaranteed season of a five-year, $94.3 million contract originally signed with San Antonio in 2015, earning $23.1 million during his 2018–19 championship campaign. The deal featured a player option for the 2019–20 season.

Following the championship run, Leonard opted out of his $21.3 million option in July 2019 to test unrestricted free agency, ultimately choosing to sign with the Los Angeles Clippers.

“I wasn’t surprised [by the punishment]… at the end of the day, Adam Silver had a job to do, and I think the punishment makes sense, and we all move forward,” Curry said in an interview with CNBC.

As the Clippers continue to challenge the league over the sanctions, all eyes remain on how the situation unfolds, especially with team owner Steve Ballmer entangled in ongoing legal matters and the potential for further scrutiny into the franchise’s cap management.

Meanwhile, after Leonard broke his silence on the scandal, anticipation is building among Toronto Raptors fans ahead of his return to the city, where he is set to lead a squad featuring emerging talent Scottie Pippen Jr.

Leonard’s trade to Rockets happened with plenty of things going on

Despite previous trade rumors surrounding Leonard and the Houston Rockets—which reportedly stalled amid the legal headwinds surrounding Ballmer—the veteran star is set to rejoin the fold.

Additionally, reports indicate the Raptors are interested in extending Leonard’s tenure, signaling a desire to build a competitive project around Leonard and Pippen to propel Toronto back into Eastern Conference playoff contention.

Curry’s future reportedly decided

While the Warriors icon refrained from discussing his long-term plans publicly, a report from The Athletic‘s Marcus Thompson II shed light on Curry’s future in Golden State.

“Steph is re-signing. Steph isn’t going anywhere. He never was… He wants to play for the same team his whole career… He’d rather go down not winning with his guys than going somewhere else and winning,” Thompson II wrote.

“Officially, The New York Times reported that the Department of Justice has opened a criminal investigation into the Los Angeles Clippers… there is a civil suit from 11 aspiring investors, an ongoing SEC probe, and an SEC probe into Daktronics ongoing,” Torre revealed in a video posted to social media. “The deal between the Clippers and the Rockets hasn’t been finalized because nobody is running the team due to these ongoing investigations.”

While the front office challenges the NBA’s discipline—which severely impacts the franchise’s draft capital—uncertainty looms over Leonard’s future as the legal web entangles the organization.

Luminaries across the league, including former Golden State Warriors veteran Draymond Green, have publicly weighed in on the situation. The severe sanctions handed down by the league office have created palpable tension and a grim mood within the Clippers‘ facility.

Leonard addresses ongoing turmoil

Amid the heightened scrutiny facing both himself and the franchise, Leonard addressed the NBA’s disciplinary findings. In his statement, the two-time Finals MVP noted that returning to Canada to suit up for the Toronto Raptors was among his top offseason priorities.

Although Leonard was hit with a $700,000 restitution fine for receiving improper benefits, he avoided a league suspension. However, any potential move to a new suitor remains frozen while the Clippers navigate their administrative chaos.

Until the legal matters surrounding owner Steve Ballmer reach a resolution, any potential reunion between Leonard and the Raptors remains on ice, leaving Toronto’s roster construction for the upcoming season in temporary limbo.

Green reacted to the NBA punishment handed down on the Clippers during The Draymond Green Show. “Five first-round picks — that is, including the picks that the Clippers just picked up in a trade from Cleveland with Darius Garland and James Harden. That includes all of the assets that they’ve acquired. If I’m not mistaken, it includes some of the picks from the Zubac trade as well,” Green said.

“That’s where the hammer is dropped. It’s crippling for a franchise — for an organization. Especially a franchise that just went through a six-to-seven-year period of thinking they’re right there with the possibility of winning.”

The Clippers will suffer the consequences

Green focused heavily on the long-term fallout for the franchise, pointing out everything they had built up to this point and everything they lost due to these poor decisions. He recognized that the Clippers will likely go through one of the hardest periods in their history for a long time.

“And now, you’re in a space where you have to reset — just got a top-5 pick in Keaton Wagler. And all of a sudden, you have to do that with losing five first-round draft picks. It may stick the Clippers in purgatory for a long time to come.”

Green believes the added pressure left in the wake of Leonard‘s no-show endorsement deal leaves the Clippers and their players in a tough position ahead of the 2026-27 season.

“It makes you think what certain players like Darius Garland — how are they going to look at being in this place now? A coach like Ty Lue, how does he look at being in this place now? It’s going to dampen the vibe around the Clippers,” Green added.

“We vehemently reject the NBA’s findings, which are the result of a heavily biased investigation seeking to justify a predetermined narrative rather than facts and evidence,” the Clippers’ statement read, according to insider Shams Charania.

After Leonard and the Clippers were strongly punished by the NBA—affecting five first-round picks and over $30 million in fines—the organization in the City of Angels won’t accept the results of the investigation. The Clippers believe they were never judged fairly and that the NBA was only looking to cherry-pick its way to fulfill a narrative. Moreover, the franchise didn’t hesitate to go after league commissioner Adam Silver, calling him out for being two-faced.

“What the league told us privately differs from what it announced today publicly, and they have not held themselves close to the standard Commissioner Silver set at the start of this investigation to ensure it’s fairness and accuracy,” the team’s statement read.

Can the Clippers appeal NBA’s sanctions?

The Los Angeles Clippers have put on their gloves and tucked in their mouth guard. They made that very clear. “For the past year, we cooperated fully and in good faith and we will now fight just as hard to demonstrate our innocence,” the organization stated. “We intend to vigorously challenge these findings and penalties through every avenue available to us and look forward to an ethical and impartial arbitration process.“

However, they may have no grounds to make their case. Well, only one, and it’s in court. “The NBA’s rulings are final,” Shams Charania reported on his X account. “There is no formal appeal or arbitration process available to the Clippers with the league. LA’s only outlet to fight the punishment is in court.”

Judging by the Clippers’ tone and the vigor of their statement, going down that path can’t be ruled out, and in fact, is to be expected. Los Angeles is holding its ground, and it won’t go down without a fight. Its pride is in the mud now. Not only have the Clippers been found guilty of circumventing the cap, but the organization’s honesty has also been put in question. There is no lower place for the team to reach, so it makes sense for them to fight their way up.

It’s on between the Clippers and the NBA

It has truly hit the fan now. The Clippers aren’t going down without a fight, and the NBA has made its decision final. Something has to give. Although he’s been suspended from all league and team activities for one year, owner Steve Ballmer will hold his ground, and his duel with Commissioner Silver is now set to be a compelling storyline in the offseason.

The dog days of summer are over now, and in Inglewood, it’s SummerSlam time. The Clippers are set to enter the ring against the league, and everybody knows only one can walk away from it in one piece.

“Integrity and respect for this game are fundamental to who I am. I accept full responsibility for lapses in judgment by people within my inner circle and regret the distraction this situation has caused the fans and my family,” Leonard stated through his agent, as reported by NBA insider Shams Charania.

“I entered into my contract with the Clippers as well as the agreements in question in good faith, fully committed to fulfilling my obligations and with no knowledge of any intent on anyone’s part to circumvent the salary cap. For 15 years, my priority has been giving everything to my family, the game, and those I share the court with. As I return to Toronto, I am focused on what I can control, closing this chapter, and moving forward with a clean slate.”

Kawhi denies being aware of cap-circumventing antics

As Leonard made clear in his statement after the NBA‘s investigation into his Clippers contract resulted in costly sanctions for both him and his former organization, he was unaware of the team’s intentions to circumvent the salary cap. However, the NBA’s statement says otherwise, finding Leonard—or at least his then-manager, Dennis Robertson—to be a culprit.

“Mr. Leonard, through the conduct of Mr. Robertson on his behalf, violated the circumvention rules by pressuring the Clippers to assist him in obtaining off-court income opportunities, successfully obtaining those opportunities, and failing to reimburse payments by the Clippers for personal expenses,” the NBA’s official statement read.

For his alleged role in the salary-cap circumvention, the NBA handed Kawhi Leonard a $700,000 fine. Still, Leonard didn’t receive as harsh a punishment as the other parties involved in the investigation.

No suspension means Kawhi’s Toronto trade faces no danger

Leonard received no suspension, while Clippers owner Steve Ballmer (one-year suspension), President of Business Operations Gillian Zucker (one-year suspension), and President of Basketball Operations Lawrence Frank (six-month suspension) can’t say the same. As for Leonard’s former agent, Robertson has been banned from the NBA and its affiliates for five years.

All the while, the Clippers are subject to a compliance and monitoring program. Leonard, however, will be able to play from the start of the 2026-27 NBA season.

Thus, as he faces no suspension and must only pay the NBA roughly 1.4% of his salary for the season, his trade to the Toronto Raptors should face no danger. Kawhi himself confirmed it, stating, “As I return to Toronto…” in his open letter after the penalties were announced.

Kawhi Leonard’s contract

With all the noise surrounding Leonard’s cap-circumventing contract, many fans wonder what his actual deal looks like. Kawhi signed a three-year, $149.5 million contract with the Clippers running through the 2026-27 NBA season.

Under this deal, Leonard made an average salary of $49.8 million. During the next campaign, though back in The Six, Kawhi will be paid a guaranteed salary of $50.3 million by the franchise he led to glory back in 2019.

“The NBA announced today that the LA Clippers and Kawhi Leonard have been penalized for violating the salary cap circumvention rules contained in the league’s Collective Bargaining Agreement (CBA) with the National Basketball Players Association (NBPA),” NBA PR said in a statement.

The league handed down the following discipline:

• The Clippers shall forfeit five first-round draft picks, one in each of the 2029, 2030, 2031, 2032, and 2033 NBA Drafts.
• The Clippers are fined $30 million.
• Clippers owner Steve Ballmer is suspended from all league and team activities for one year for knowingly seeking to help Mr. Leonard obtain off-court income opportunities, for approving a business deal that he knew was a precondition for Aspiration to enter into an endorsement agreement with Mr. Leonard, and for his failure to create conditions under which his organization abided by the NBA’s circumvention rules.
• Clippers President of Business Operations Gillian Zucker is suspended without pay for one year for being primarily and directly culpable for the impermissible endorsement arrangements and for providing false and misleading statements to investigators.
• Clippers President of Basketball Operations Lawrence Frank is suspended without pay for six months for his involvement with the impermissible endorsement arrangements and for approving impermissible expenses incurred by Mr. Leonard and his family.
• The Clippers organization and personnel are subject to a compliance and monitoring program overseen by the league office for a period of five years.
• In connection with his violations, Mr. Leonard is required to pay the league $700,000.
• Mr. Robertson is banned from conducting business or otherwise engaging with NBA teams and their affiliates on behalf of or with respect to any player, employee, or other league or team personnel for a period of five years.

NBA Commissioner Adam Silver weighs in on penalties

In a statement addressing the discipline, NBA Commissioner Adam Silver shared his perspective on the findings involving Leonard and the Clippers. “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,“ Silver stated.

The decision not only complicates the path forward for the Clippers over the coming seasons, but also serves as a stark warning to the rest of the league. Any organization considering similar workarounds now faces clear proof of the severe consequences handed down by the NBA.

Leonard, Clippers release statements

Following the NBA’s decision, Kawhi Leonard released a statement regarding the ruling as he turns his attention toward a return to the Toronto Raptors following the ongoing drama between him and the Clippers.

Meanwhile, the Clippers also reacted to the penalties. In a statement shared by Charania, the Clippers made it clear that they will challenge the NBA punishments affecting their draft picks.

Sam Amick of The Athletic previously reported that Leonard had a staggering list of demands for the Lakers. Behind his uncle and infamous business manager, Dennis Robertson, Leonard wanted the franchise to meet lofty conditions before he would consider signing with the purple and gold:

• Part ownership of the team
• A private plane that would be available at all times
• A house
• A guaranteed amount of off-court endorsement money

Robertson repeatedly demanded all these from Jeanie Buss, but the Lakers governor ultimately dismissed them due to obvious illegality under the league’s Collective Bargaining Agreement (CBA).

Kawhi’s suspicious decision

What was once puzzling now makes sense regarding why he ended up choosing that destination. In the end, Leonard joined the Clippers on a three-year, $103.1 million contract. At that time, no one knew that both sides had a handshake agreement that would create headlines across the NBA six years later.

New revelation in the investigation

After fully exposing Leonard and the Clippers’ ties to Aspiration through a dummy $28 million endorsement contract, investigative journalist Pablo Torre recently revealed another crucial detail, adding a new dimension to the case surrounding the star forward.

According to Torre, Leonard apparently has another hidden channel to receive off-the-books money from the Clippers. Daktronics, the manufacturer of Los Angeles’ scoreboard, has a secret multimillion-dollar sponsorship deal with Leonard.

The Clippers commissioned Daktronics for $100 million for the construction of the famous “Halo Board” at Intuit Dome, raising questions about how much Leonard earned through this secret deal with the electronics company.

Michael Grange of Sportsnet recently shared what he thinks the most likely outcome of the trade will be. “A negotiated settlement where the NBA gets to enforce some version of its rules, Ballmer can save face and Leonard can play for the Raptors,” Grange wrote.

“Whether Torre’s latest finding is new information to the NBA’s investigation or not, a report in The Athletic last month said a second no-show endorsement deal was already part of the investigation, the sense is that it won’t affect the next stage of the process, namely figuring out what the league is going to do with the information it has collected.”

What remains on pause

The trade that sent Leonard to the Raptors and Brandon Ingram and Gradey Dick to the Clippers is still on pause, and it won’t be completed until the investigation is possibly over. There is still a chance for things to be cleared up before training camp, which will be good for the players so they can be with their new teams.

The league is working quietly to get things resolved quickly, and according to Grange, things have moved beyond the fact-finding stage. All of this comes without even an estimated timeline for when it might reach a conclusion.

What is new in the investigation?

Things continue to be extremely complicated for Kawhi Leonard. First, Leonard was under investigation for his Aspiration sponsorship. Now, he is under suspicion for a second sponsorship.

According to Pablo Torre of Pablo Torre Finds Out, Leonard was involved in a sponsorship with the LA-based crisis firm Daktronics’ Ballmer. An NBA insider told Torre that it was a case of history repeating itself. In other words, Leonard and company were trying to defy the rules of the NBA salary cap.

According to Torre’s sources, Leonard had a hidden multimillion-dollar “sponsorship” with Daktronics. This once again raises alarms about Leonard and the Clippers, as it suggests they may have added even more money on top of his contract and the alleged Aspiration deal.

“This Kawhi deal was not only discussed by higher-ups with the Clippers to circumvent the salary cap… This second source was also told that Kawhi’s sponsorship with Daktronics was a multimillion-dollar deal,” Torre revealed on his show, Pablo Torre Finds Out.

Raptors trade still on standby

The issue surrounding Leonard stems from a curious scenario. The Clippers made an innovative shift within the franchise when construction began on Intuit Dome, their new arena. The team began using the venue in August 2024, and it has been a huge success for both the organization and the fans attending in person.

One of its biggest attractions is the massive circular screen appropriately known as the Halo Board. It is a gigantic, halo-shaped, double-sided 4K video board built by Daktronics. That company proves key because it is involved in this new controversy brought to light by Torre.

Now that Torre has brought this to light, it presents another massive problem for Leonard, the Clippers, and even the Raptors. For Toronto, the direct consequence would be failing to acquire the player they are targeting. However, the situation is far more serious for Leonard and the Clippers, as this marks their second instance of salary cap circumvention and could result in harsh penalties from the NBA if Torre’s reporting proves accurate.

Why is this a problem?

NBA rules aim to prevent teams from using alternative funding sources to provide financial advantages to their players and circumvent restrictions set by the collective bargaining agreement.