Legal expert surprised by Kawhi Leonard trade pause amid NBA contract probe

A Toronto legal expert expressed surprise at the Toronto Raptors' proposed trade for Kawhi Leonard being put on hold, stating such issues should have been thoroughly vetted internally before the announcement.

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I was frankly shocked. I would have thought that was an issue that would have been vetted internally on both sides before the transaction was announced.

Russell Sanders, a partner at Aird and Berlis, was "frankly shocked" by the development. He noted that the NBA is investigating Leonard's 2024 contract with the Los Angeles Clippers, following allegations of a "no-show" endorsement deal with an environmental financial technology company. The Raptors and Clippers both issued statements acknowledging the pause and stating the Raptors would assume the risk of any penalties from the investigation.

Sanders suggested that the Raptors would likely not proceed with the trade if the potential penalties were too harsh. The deal, as proposed, would send Brandon Ingram, Gradey Dick, two unprotected first-round picks, a 2027 pick swap, and two second-round picks to the Clippers for Leonard. The NBA's investigation, opened in September, is reportedly linked to a $28 million endorsement deal with Aspiration, a company that has since entered bankruptcy. Leonard himself has not been charged with any wrongdoing.

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I don’t want to speculate, obviously, on what the punishment would be or how what it would look like, but I don’t see the Raptors going through with anything if it would be so harsh that it wouldn’t be palatable for the team to take on a player like that.

"The Raptors have no nexus to (the deal) whatsoever, so it would it would be pretty shocking if the Raptors had to assume that kind of liability associated with something that happened under another owner’s roof," Sanders said. He also acknowledged that Leonard could face a lengthy suspension or have his contract voided, which could render the trade unappealing. Sanders drew a parallel to past salary cap circumvention controversies in the NHL and NBA, referencing the Joe Smith case with the Minnesota Timberwolves in the late 1990s.

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The Raptors have no nexus to (the deal) whatsoever, so it would it would be pretty shocking if the Raptors had to assume that kind of liability associated with something that happened under another owner’s roof.