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The Toronto Raptors have put the brakes on acquiring Kawhi Leonard from the Clippers, announcing Thursday that the trade is on hold until the NBA investigation into whether the Clippers circumvented salary cap rules is complete.

“The NBA league office informed us that as a result of the ongoing investigation involving the Clippers, we would assume the risk of any potential outcome of the investigation impacting Kawhi,” the Raptors said. “In light of this, we will wait until the league’s investigation is complete.”

The trade sent Leonard to Toronto for forward Brandon Ingram, shooting guard Gradey Dick, two first-round draft picks, a pick swap and two second-round picks. Leonard has spent the last seven seasons with the Clippers after leading the Raptors to the 2019 NBA championship.

The probe was triggered in September when the “Pablo Torre Finds Out” podcast aired an episode detailing a contract Leonard received from Aspiration, a self-described “socially-conscious and sustainable banking services and investment products” firm. Clippers owner Steve Ballmer invested $60 million in the now-defunct company that in turn agreed to pay Leonard $28 million for endorsements he never fulfilled.

The investigation is being conducted by Wachtell Lipton, a high-powered New York law firm the NBA has frequently used when attempting to determine off-the-court wrongdoing by team owners, players or referees. There is no timetable for its conclusion, and the league had no comment Thursday.

Ballmer invested $50 million in Aspiration in September 2021. A month later, the Clippers announced a $300-million sponsorship deal with the company. Ballmer nearly granted Aspiration naming rights to the team’s new $2-billion venue as well, but instead chose financial services firm Intuit.

Two years later when Aspiration was experiencing severe financial difficulties, Ballmer made an additional $10 million investment and Clippers co-owner Dennis Wong — Ballmer’s former college roommate — invested $1.99 million in Aspiration nine days before Leonard received a $1.75 million payment from the company. Leonard ultimately was paid $21 million of the $28 million agreed upon in his contract with Aspiration.

Leonard averaged 25.1 points, 6.4 rebounds, 4.1 assists and 1.7 steals over six seasons with the Clippers and was selected to four All-Star teams, four All-NBA teams and two All-Defensive teams while in L.A. Leonard averaged a career-high 27.9 points while playing 65 games last season.

“The Raptors remain eager to bring Kawhi back to Toronto and look forward to a swift resolution for our players, our organization, and our fans,” the Raptors said.

Reasons for the Clippers to trade Kawhi Leonard are apparent. So are reasons to keep the seven-time All-Pro forward who turned 35 on Monday.

For now, the team is engaged in discussions and entertaining offers for Leonard, who is highly regarded despite being central to a league investigation into allegations of salary-cap intervention.

Representatives for Leonard, who has one year remaining on a three-year, $152.4 million contract, have informed other teams he prefers to remain with the Clippers and would only sign an extension with the Toronto Raptors or San Antonio Spurs if the Clippers trade him, ESPN reported. Leonard helped both of those teams to NBA titles, the Raptors in 2019 and the Spurs in 2014. He was Finals MVP both years.

However, the Athletic reported that the Dallas Mavericks offered to trade power forward P.J. Washington, shooting guard Klay Thompson and draft picks for Leonard. Mavericks president Masai Ujiri held the same position with the Raptors when they won the 2019 championship.

If Leonard doesn’t agree to a contract extension with Dallas, he essentially would be a one-year rental and not worth as much in trade capital. Ujiri engineered the trade in 2018 that brought Leonard to the Raptors without the player agreeing to an extension, and the result was a championship followed by Leonard bolting to the Clippers.

Another factor in assessing Leonard’s trade value and the Clippers’ motivation to move him is the ongoing NBA investigation involving team owner Steve Ballmer, Leonard and the now-bankrupt sustainable financial technology firm Aspiration.

Triggered in October when the “Pablo Torre Finds Out” podcast detailed a $28 million endorsement contract Leonard received from Aspiration, the NBA hired a prominent law firm to conduct the probe. Findings could be announced soon because NBA commissioner Adam Silver said June 2 that it was time to “wrap it up.”

Aspiration had a $300 million, 23-year endorsement deal with the Clippers and Ballmer personally invested $60 million into the company, whose co-founder Joseph Sanberg was convicted of two counts of wire fraud and sentenced to 14 years in federal prison. Ballmer admits introducing Leonard to Aspiration executives but has denied that he knew details of the endorsement deal that Leonard never fulfilled.

Silver has not stated that the NBA would hold up any trade involving Leonard because of the investigation. Still, the Clippers expressed at the end of the regular season that keeping the 14-year veteran was a priority.

“Our plan is to win with Kawhi,” Clippers president Lawrence Frank said.

Leonard is coming off his best season of six with the Clippers, averaging a career-high 27.9 points over 65 games. He has averaged 20.7 points a game during his career.

The Raptors are rumored to be dangling former Lakers forward Brandon Ingram and first-round draft picks

The sentencing of Aspiration co-founder Joseph Sanberg to 14 years in federal prison on Monday brings the NBA a step closer to concluding its nine-month investigation into the Clippers allegedly circumventing the salary cap.

Sanberg pleaded guilty in October to federal charges of conspiring to bilk investors out of $248 million for portraying the now-defunct Aspiration as a “socially-conscious and sustainable banking services and investment products” firm.

The NBA has declined to comment on the status of the probe centered on $60 million invested in Aspiration by Clippers owner Steve Ballmer and the $28-million contract Clippers star Kawhi Leonard signed with Aspiration for endorsement and marketing work that he never delivered.

Players are allowed to have separate endorsement and other business deals, but at issue is whether the Clippers participated in arranging the side deal beyond simply introducing Aspiration executives to Leonard. Doing so would be a violation of Article 13 of the NBA collective bargaining agreement, punishable by a $4.5-million fine, the loss of a first-round draft pick and the voiding of Leonard’s contract.

The NBA draft takes place June 23-24 and the Clippers have three picks, including the fifth overall selection. The league is not expected to release its findings until after the NBA Finals, which begin Wednesday between the New York Knicks and San Antonio Spurs.

Clippers officials haven’t commented on the investigation. But Leonard, who has one year left on a three-year, $149.5-million contract that will pay him $50.3 million next season, told The Athletic after the Clippers’ season-ending game April 15 that “I think we’re going to be in the clear. I’m not stressing.”

Otherwise, among the few public comments about the investigation were letters submitted to federal court judge Stephen V. Wilson ahead of Sanberg’s sentencing by Ballmer and the law firm conducting the probe on behalf of the NBA.

The letter from Dave Anders of Wachtell Lipton stated that Sanberg provided documentation and information helpful to the NBA investigation during two in-person interviews.

“In all our dealings with Mr. Sanberg, both directly and through his counsel, he provided information that was consistent with our review of contemporaneous documents and other evidence,” Anders wrote. “Mr. Sanberg’s cooperation substantially assisted our investigation, including our ability to develop a more complete understanding of key events.”

Ballmer countered by asking Wilson for a stiff sentence in a five-page Victim Impact Statement posted on social media by his lawyer, David N. Kelley.

“Sanberg continues to exploit his fraud of Mr. Ballmer for his benefit, providing information to the NBA in return for a sentencing letter that the league submitted on his behalf,” Kelley wrote. “The reliability of Sanberg’s information is suspect given that he has pleaded guilty to federal fraud charges, and the government has made its own determination that he is not credible.”

Before handing down the sentence, Wilson made it clear that Sanberg’s credibility was questionable.

“He portrays himself as a do-gooder who was in business to help the world, but he did personally gain from his fraud,” Wilson said, later adding, “I would put the grade of his fraud at the zenith.”

Ballmer, a former longtime CEO of Microsoft who has owned the Clippers since 2014, accused Sanberg of targeting him for his well-known interest in environmental sustainability and exaggerating their relationship to convince others to invest in the fraudulent company. He said he met Sanberg only once.

Ballmer invested $50 million in Aspiration in September 2021. A month later, the Clippers announced a $300-million sponsorship deal with the company. Ballmer nearly granted Aspiration naming rights to the team’s new $2-billion venue as well, but instead chose financial services firm Intuit. Ballmer made an additional $10-million investment in Aspiration on March 9, 2023.

Ballmer was added in November as a defendant in a civil lawsuit against Sanberg and several others associated with Aspiration. Ballmer and the other defendants are accused by 11 investors in Aspiration of fraud and aiding and abetting fraud, with the plaintiffs seeking at least $50 million in damages.

Kelley contended that Ballmer was added as a defendant because of his “visibility and resources,” and portrayed the Clippers owner as a victim, saying “Mr. Ballmer’s losses are not measured solely, or even primarily, on a balance sheet. They are measured in the reputational damage that will take years to remediate, and in the chilling effect on future endeavors intended to do good.”

The lone public comment about the investigation from NBA Commissioner Adam Silver came during All-Star Weekend in February at the Intuit Dome when he described the issue as “enormously complex.”

“You have a company in bankruptcy, you have thousands of documents, multiple witnesses that needed to be interviewed,” Silver said.

The investigation was triggered by reports from podcaster Pablo Torre that Leonard’s sponsorship deal with Aspiration was to circumvent the salary cap. Torre and the staff of “Pablo Torre Finds Out” won a Pulitzer Prize for Audio Reporting for their efforts.

As many as a dozen letters — including one from the NBA — were submitted by the attorney for Aspiration Partners co-founder Joe Sanberg ahead of his sentencing Monday in an effort to persuade the judge to trim the 17 years prosecutors have requested for each of the two counts of fraud.

Sanberg pleaded guilty in October to the federal charges of conspiring to bilk investors out of $248 million for portraying the now-defunct Aspiration as a “socially-conscious and sustainable banking services and investment products” firm.

Another letter was also submitted, however, and it wasn’t intended to assist Sanberg.

Clippers owner Steve Ballmer’s attorney David N. Kelley of O’Melveny and Myers wrote that Ballmer was defrauded of a $60-million investment in Aspiration and that the harm to his reputation is “immeasurable.”

The five-page Victim Impact Statement concludes: “Mr. Ballmer’s losses are not measured solely, or even primarily, on a balance sheet. They are measured in the reputational damage that will take years to remediate, and in the chilling effect on future endeavors intended to do good at scale.

“We ask the court to impose a sentence that accounts for those harms, promotes respect for the law, and deters those who would seek to appropriate the reputations of others to advance fraudulent aims.”

The letter states that the Clippers lost out on a $300 million sponsorship agreement with Sanberg in exchange for the team to wear Aspiration jerseys patches. Also lost was about $20 million the Clippers paid for carbon offset purchases and the $60 million Ballmer invested in the company.

Ballmer, a former long-time CEO of Microsoft, accused Sanberg of targeting him for his well-known interest in environmental sustainability and exaggerating their relationship to convince others to invest in the fraudulent company. In the letter, Ballmer says he met Sanberg only once.

Ballmer was added in November as a defendant in an existing civil lawsuit against Sanberg and several others associated with Aspiration. Ballmer and the other defendants are accused by 11 investors in Aspiration of fraud and aiding and abetting fraud, with the plaintiffs seeking at least $50 million in damages.

The letter dismisses the allegations in the lawsuit as “nonsense,” stating Ballmer was added as a defendant because of his “visibility and resources,” and reiterates that Ballmer himself is a victim of fraud. The action has damaged his reputation, the letter states, “and has further linked Mr. Ballmer to Sanberg’s fraud in the eyes of the public.”

The letter to the court, however, makes no mention of the $28-million contract Clippers star Kawhi Leonard signed with Aspiration for endorsement and marketing work. Players are allowed to have separate endorsement and other business deals, but at issue is whether the Clippers participated in arranging the side deal beyond simply introducing Aspiration executives to Leonard.

Leonard has addressed the accusations only once, denying wrongdoing and saying, “I understand the full contract and services that I had to do. Like I said, I don’t deal with conspiracies or the click-bait analysts or journalism that’s going on.”

The arrangement could be considered circumventing the NBA salary cap, a serious violation of league rules. Ballmer steadfastly denies arranging the deal between Aspiration and Leonard, who by all accounts performed no duties for Aspiration.

The NBA is investigating the complicated relationships between Ballmer, Leonard and Aspiration. One of the letters submitted by Sanberg’s attorney to the judge is from the law firm conducting the probe, and it states that the disgraced executive provided documentation and information helpful to the NBA investigation during two in-person interviews.

“In all our dealings with Mr. Sanberg, both directly and through his counsel, he provided information that was consistent with our review of contemporaneous documents and other evidence,” wrote Dave Anders of Wachtell Lipton. “Mr. Sanberg’s cooperation substantially assisted our investigation, including our ability to develop a more complete understanding of key events.”

Eventually the ledger will include the results of the NBA investigation into the allegations against Ballmer and Leonard. And that finding might impact the reputation of both more than Sanberg’s fraudulent dealings.