The Kawhi Leonard Investigation Just Got Bigger. The Clippers Might Be in Real Trouble.

The NBA’s probe into Kawhi Leonard’s sponsorship deal with Aspiration has been dragging on for nearly a year. But according to a new report from The Athletic, the league’s law firm — Wachtell Lipton — hasn’t just been looking at whether the Clippers helped set up that $28 million deal to get around the salary cap. They’ve expanded the scope.

Investigators are now looking into two other potential violations. One: whether the Clippers improperly covered expenses for Leonard without getting reimbursed. Two: whether Leonard had a separate, unreported endorsement deal with another company entirely. That’s a much bigger net than what we knew about before.

Meanwhile, the trade that would send Leonard back to the Toronto Raptors — the only team he’s won a championship with — has reportedly stalled. The Raptors were told by the league that they could face punishment if they acquire the 35-year-old while the investigation is unresolved. Toronto has denied pressing pause, but the timing is suspicious.

NBA commissioner Adam Silver recently said he expects the investigation to wrap up soon. But “soon” is doing a lot of work there. It’s been nearly a year already.

What Steve Ballmer Has Said

Clippers owner Steve Ballmer reportedly had a stake in Aspiration, the financial services company at the center of the original allegation. Ballmer has claimed he was a victim of fraud in the deal. Not everyone is buying that story. The Pablo Torre Finds Out podcast first reported the alleged salary cap circumvention, noting that Leonard never publicly promoted Aspiration despite getting paid large sums in multiple installments.

There’s a lot of smoke here. And if the league finds that the Clippers intentionally hid compensation to Leonard, the penalties could be serious. Fines, lost draft picks, maybe more.

The bigger picture is that this whole thing has frozen the Leonard trade market. Toronto reportedly wants him back. But until the NBA makes a ruling, no one wants to touch this deal. The Raptors don’t want to get caught in the crossfire. And the Clippers don’t want to trade him only to get hammered by the league afterward.

Leonard has been quiet through all of this. That’s not unusual for him. But the silence only adds to the uncertainty. The investigation is the story now. And it’s not going anywhere until the league drops its final decision.