NBA is investigating Kawhi, but the probe might drag on until 2027.

Will Kawhi Leonard be able to go to the Raptors? Who knows!

The NBA has yet to disclose the investigation results, and there are even reports that the probe might be postponed until 2027.

If that’s the case, the Raptors cannot afford to take that risk.

The plan at the beginning of the month was: the Clippers send out Kawhi, and receive Ingram, Dick, two first-round picks (2027, 2029), a 2030 first-round pick swap, and two second-round picks from the Raptors.

Now that things are stuck here, it’s not only affecting Kawhi’s future, but also the other key player in the trade, Ingram, who is in an awkward position.

Many of you might have only heard that Kawhi Leonard is under investigation, but what exactly is the case he’s involved in?

To make it easier to understand, I’ll explain it in simple terms today.

To understand the whole situation, we first need to grasp one of the NBA’s core rules: the salary cap.

Its purpose is to balance the strength of each team and prevent wealthy owners from endlessly spending money to monopolize star players.

All salaries players earn from playing for a team count toward the salary cap.

All compensation to players for on-court performance must be included in their public player contracts, and no under-the-table payments are allowed.

If any so-called "double contracts" are discovered, severe penalties are certain.

The most classic case in history is the Timberwolves’ Joe Smith incident: he signed a minimum contract with the promise that in the summer of 2001, they would offer him a seven-year deal worth $86 million to $100 million...

Then, the NBA imposed heavy fines and took away multiple draft picks.

Now, back to Kawhi’s issue.

The league suspects that Clippers owner Steve Ballmer set up a financial channel, using a third-party financial company to indirectly provide

Kawhi with huge compensation beyond his salary.

The main characters in this story, aside from Kawhi Leonard, the Clippers, and Ballmer, include a green finance company called Aspiration.

In September 2021, Ballmer personally invested $50 million in this company.

Just over ten days later, the Clippers signed a major sponsorship deal with this company: a 23-year, $300 million sponsorship for their home arena.

This deal covers arena branding, jersey ads, and is a long-term, high-value commercial contract.

After the financial chain was set up, Kawhi signed an endorsement agreement with Aspiration through his own registered business company.

He could receive $7 million in cash each year.

A star signing an endorsement deal is normally a routine thing, right?

However, there are many suspicious points.

First, the financial chain.

The owner puts money into the company, and then the company pays the star player.

The league suspects that the entire chain was pre-designed.

Such suspicion is quite reasonable.

Second, the contract reportedly includes a clause that if Kawhi leaves the team, he would not receive the money.

That... is very unreasonable.

It’s like if LeBron James went to the 76ers, would his endorsement brand stop paying him?

So, the NBA suspects that the money Kawhi receives is not actually an endorsement fee, but a retention bonus.

Third, this is a nominal endorsement contract that requires almost no work.

Under normal circumstances, a brand spends tens of millions to sign a star for endorsement, aiming to use the star’s influence to promote their products.

But Kawhi basically doesn’t have to do anything.

Putting all this together... the league is pointing directly at the Clippers for allegedly using a third-party channel to circumvent the salary cap and provide Kawhi with hidden compensation.

The investigation started a while ago.

Some of you might ask: since there are so many suspicious points, why can’t they just convict him directly?

No matter how much circumstantial evidence there is, it’s still just speculation. We need to think from the perspective of legal conviction logic.

Before the official investigation conclusion is announced, the Clippers and the player are presumed innocent.

In short, the one caught in a dilemma right now must be the NBA league itself.

If the investigation ends with no penalties, many owners, especially those in small markets, will be dissatisfied.

One final point: it’s not just the NBA; many leagues have salary cap systems, but in reality, they are very difficult to enforce.

If a team helps a star player get an endorsement through connections, and then the player takes a lower salary, can you really stop that?

So... for us regular fans, just sit back and watch the show.