Recent reports and ongoing developments suggest that Kawhi Leonard could ultimately join the Toronto Raptors, despite an ongoing NBA investigation into alleged salary cap circumvention by the Los Angeles Clippers. The trade was paused by the Raptors pending the investigation’s outcome.
The investigation focuses on alleged undisclosed endorsement arrangements for Leonard while with the Clippers. A report by Pablo Torre on his podcast detailed a seemingly unlikely endorsement deal with scoreboard manufacturer Daktronics. This follows previous scrutiny regarding an alleged no-show sponsorship deal with the sustainability company Aspiration, which reportedly paid Leonard millions for no visible work.
Investigation Details and Potential Outcomes
According to Torre’s report, Daktronics, which built the video board at the Clippers’ Intuit Dome, hired Leonard for a multimillion-dollar sponsorship deal for which no work could be found. Sources cited in the report, including a high-level source under contract for Intuit Dome and a former high-level Clippers official, alleged that the deal was a way to circumvent the salary cap. One source indicated that people within Daktronics and the Clippers organization discussed this deal, suggesting the Clippers were funding it and funneling money to Leonard through Daktronics.
Unlike Aspiration, which had other celebrity endorsement deals, Daktronics is not known for such arrangements. Daktronics is primarily a business-to-business company, limiting the impact of celebrity endorsements.
The NBA’s investigation is reportedly beyond its fact-finding stage. League sources suggest the Clippers and the NBPA are working to resolve the issue. NBA Commissioner Adam Silver hinted at this on July 14, emphasizing the need for a thorough, comprehensive, and fair investigation while also acknowledging the league’s operational needs.
Silver expressed a desire for the investigation to be concluded before the next season begins. He mentioned the challenge of balancing the integrity of the investigation with the need to move forward without causing undue damage to the league. The commissioner noted that while he could halt the independent investigation, Wachtell Lipton would likely include in their report that they were required to stop before fully understanding the situation.
Implications for Leonard and the Raptors
Despite the complexities, there is a quiet confidence that the trade involving Leonard will proceed in time for training camps, which are scheduled to open on September 28. The Raptors paused the trade to avoid the risk of having Leonard on their roster if his contract were voided, which would result in the loss of assets given up to acquire him.
A player suspension for alleged cap circumvention is not anticipated. Penalties for salary cap circumvention, as outlined in the league’s collective bargaining agreement, typically include team fines, forfeiture of draft picks, voiding player contracts, and suspensions for team personnel. However, the agreement does not mention player suspensions for participating in such schemes. Players might be required to “disgorge” benefits gained from a third party.
Reports last week suggested the investigation could extend if arbitration becomes necessary. However, players can continue to play during arbitration. It is also considered likely that the NBPA would expedite any arbitration involving Leonard to resolve it quickly, potentially separating it from a longer arbitration process between the Clippers’ owner, Steve Ballmer, and the league.
The Eastern Conference has become deeper since then. The Raptors expect to emerge from this situation with Leonard, a seven-time All-NBA selection, ready to contribute to their competitiveness.
Ballmer, considered a model owner, possesses significant financial resources. Torre’s work makes it difficult for the NBA to dismiss the allegations. However, the league is not necessarily seeking a protracted legal battle with one of its influential owners.
An NBA spokesperson declined to comment on the investigation’s status, and a representative for the NBPA did not respond to a request for comment. The league typically experiences a relatively dormant period in August, with many expecting resolutions to emerge in the first week of September when personnel return to work.
Source: sportsnet.ca
