The NBA just dropped the hammer on the LA Clippers, but Kawhi Leonard may be walking away from the fallout with something far more valuable than a clean slate. The seven-time All-Star was fined $700,000, yet his path back to Toronto remains intact. With the investigation now concluded, the Raptors’ blockbuster trade could be shaping up as more than a gamble. It may be the start of a lucrative long-term reunion.
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Toronto initially agreed to send Brandon Ingram, Gradey Dick, 2031 and 2033 first-round picks, 2030 and 2033 second-round picks, and the rights to a 2027 first-round pick swap to the Los Angeles Clippers for Leonard. With his 2026-27 season set to be the final year of his deal, an extension would be a logical next step once the trade becomes official.
That outcome has already received support from NBA insider Shams Charania, who previously indicated that the trade was expected to move forward as planned. Even the Athletic’s John Hollinger stated the deal would go through as expected.
“The Clippers are getting two first-round picks, a second-round pick and a first-round swap from Toronto, assets LA desperately needs now that it just forfeited a half-decade worth of first-round picks. The Clips also aren’t winning anything notable in the near future, and the original Leonard trade agreement was an admission of that. Finally, Leonard is in the final year of his deal in LA, and his trade value would die on the vine if the Clippers kept him. Meanwhile, he has a juicy extension waiting for him in Toronto once the deal consummates.”
Hollinger further added that the Raptors, too, have little reason to put the agreement in jeopardy. Since they don’t have a Plan B option if the Kawhi Leonard reunion fails.
The two-time Finals MVP also appeared to confirm the direction of the deal himself. “As I return to Toronto, I am focused on what I can control, closing this chapter, and moving forward with a clean slate.”
Clean slate refers to the investigation that is concluded. Kawhi Leonard was fined $700,000 as part of the NBA’s ruling, but the league did not block his move to Toronto. Meanwhile, the Clippers lost a lot.
The Clippers lost five future first-round picks, covering 2029 through 2033. Team owner Steve Ballmer received a $30 million fine and a one-year suspension.
President of Business Operations Gillian Zucker also received a one-year suspension, while President of Basketball Operations Lawrence Frank was suspended for six months. The Raptors waited patiently and now can make the move official.
They are bringing back a player who helped deliver the franchise’s first championship in 2019. If everything goes as expected, Toronto may soon have Leonard under contract beyond next season as well.
Kawhi Leonard may have to sacrifice his earnings
Leonard’s next contract could be where things get especially interesting. Under the extension rules in place when the trade was structured, he can sign a two-year extension worth up to $123.7 million.
Because of the NBA’s Over-38 rule, Leonard is limited to two additional years beyond the one season left on his current deal. There is also a potential boost if he waits until January 2027.
In that case, the extension could rise slightly to $126.7 million thanks to the 140% raise exception.
But there is another piece of the deal that could complicate matters: Leonard’s 15% trade kicker.
The bonus is worth roughly $7.5 million, and the Clippers would be responsible for paying it. However, the cap hit works differently. The prorated value of the kicker counts toward Toronto’s payroll, not Los Angeles’.
That creates a problem for the Raptors as they try to complete the trade without running into the NBA’s hard-cap restrictions.
Toronto is using a 125% expanded trade exception to absorb Leonard’s $50.3 million salary. That move triggers a hard cap, leaving the Raptors with limited room to take on additional salary. If Leonard receives the full trade bonus, Toronto could be pushed over that threshold.
As a result, Leonard may have to make a financial sacrifice before he even begins his next chapter in Toronto. Cap experts expect him to waive a significant portion, potentially all, of his trade kicker so the deal can fit under the Raptors’ hard cap.
That could sting in the short term. Still, with a potentially massive extension waiting for him in Toronto, Leonard may have another reason to look beyond the immediate payout.