NBA Commissioner Adam Silver said Tuesday that the league’s investigation into alleged salary cap circumvention involving Kawhi Leonard and the LA Clippers needs to be concluded before the start of next season, calling the extended timeline longer than he had hoped while reiterating that the league itself was not responsible for the pause in a reported trade that would have sent Leonard to the Toronto Raptors.
Silver spoke to reporters following a meeting of the NBA’s board of governors in Las Vegas, addressing several significant issues including the Leonard investigation, the second apron luxury tax rules, and the league’s ongoing expansion process.
The investigation and the trade that stalled
The investigation, being conducted by an outside law firm retained by the NBA, is examining allegations that the Clippers funneled money to Leonard through a corporate endorsement arrangement that also involved a large endorsement deal between the same company and the team. The company involved has since filed for bankruptcy, which Silver said was among the legal complications that extended the investigation’s timeline, alongside what he described as reluctant witnesses.
Silver said the law firm was providing weekly updates to the league’s general counsel and that the owner of the Clippers had met with investigators the previous week in what sources described as likely among the final steps in the process. Silver has not yet seen the firm’s conclusions because the report is not finished.
The Leonard-Raptors trade, reportedly agreed to on June 30, remains unfinished because both clubs chose not to proceed given that the investigation’s outcome could theoretically affect Leonard’s contract. If the investigation concludes that salary cap rules were violated, the potential consequences could include voiding Leonard’s contract or fines. Silver was clear that the decision not to complete the trade was made by the parties to the deal, not by the league.
He said the league’s position is that Leonard’s contractual status would not change simply as a result of being traded, and that teams interested in acquiring him had received answers from the league office when they raised questions. The Raptors said they remain eager to bring Leonard back to Toronto but will wait for the investigation to conclude.
Silver’s defense of the second apron
The meeting also featured a conflict between the league and the players’ union over the second apron luxury tax rules, which the union’s leadership argued must be softened or eliminated because of the harm they cause to competitive rosters. The Boston Celtics cited the second apron as a factor in their decision to trade their 2024 Finals MVP, and the New York Knicks similarly referenced it in discussing roster decisions.
Silver acknowledged that the second apron could be addressed in future collective bargaining discussions but said he believes the system is working as intended. He pointed to the most recent NBA Finals, which featured a large-market franchise and a small-market team, as evidence that the competitive balance goals behind the rules are being achieved. The union’s executive director and president have characterized opposition to the second apron as growing among players, agents, and some team officials.
Expansion updates and a new board chairman
Silver offered measured optimism about the league’s expansion process, which has been focused on Las Vegas and Seattle since the board voted in March to formally explore adding two teams. He said multiple ownership groups in Las Vegas are presenting plans to the league’s financial advisors, including arena concepts and proposed ownership makeups, and described the pace as encouraging. The target for the new teams to begin play remains the 2028-29 season, and Silver said the ownership selection process remains on track to conclude by the end of the current year.
The board also elected Miami Heat owner Micky Arison as its new chairman, succeeding the Toronto Raptors’ Larry Tanenbaum, who had held the position since 2017. The transition takes effect in September.
