The Toronto Raptors’ pursuit of Kawhi Leonard has already been frozen by an NBA investigation. Now, a possible expansion of the blockbuster trade could add Peyton Watson — and another layer of risk — to an increasingly complicated transaction.
NBA insider Jake Fischer reported during a Bleacher Report livestream that the Los Angeles Clippers could expand the Leonard trade into a multi-team deal involving Watson, the Denver Nuggets’ restricted free agent.
“I’ve been told that is a possibility — that Los Angeles could turn the Kawhi trade into a bigger, multi-team deal where they rope that into a sign-and-trade, with Peyton Watson becoming a Los Angeles Clipper,” Fischer said. “Then zero salary would have to go back to Denver, and they could potentially reroute some draft capital from the Raptors to the Nuggets in that event.”
Fischer’s wording is important. He described rerouting Toronto’s existing draft compensation, not requiring the Raptors to add more assets.
Such a structure would send Watson to Los Angeles while helping Denver avoid taking back salary. Every dollar matters for a Nuggets team navigating the second luxury-tax apron.
For Toronto, however, the larger question is not where its draft picks land. It is whether Leonard will be available to play — or remain under contract — after the NBA completes its investigation.
Raptors Waiting on Kawhi Leonard Ruling
Getty Kawhi Leonard attends the match between Elena Rybakina of Kazakhstan and Naomi Osaka of Japan during the quarterfinals on day ten of the National Bank Open Presented by Rogers at Sobeys Stadium on August 11, 2026 in Toronto, Ontario.
Toronto agreed to acquire Leonard for Brandon Ingram, Gradey Dick, unprotected first-round picks in 2031 and 2033, a 2027 first-round pick swap and second-round selections in 2030 and 2033.
The deal has not been formally completed.
The Raptors paused the transaction after learning they would assume the risk of any punishment affecting Leonard. The league is investigating allegations that the Clippers circumvented salary-cap rules through Leonard’s endorsement arrangement with the bankrupt sustainability company Aspiration.
The Clippers have denied wrongdoing.
If the NBA limits its punishment to fines or the forfeiture of Clippers draft picks, Toronto would not inherit those penalties. The trade could potentially proceed, although the parties might need to adjust its construction depending on the ruling.
A suspension affecting Leonard would present a more difficult decision. The Raptors could still complete the trade, but they would be surrendering Ingram, Dick and significant draft capital for a 35-year-old forward who would miss an undetermined portion of the season.
No credible report has established a possible suspension length.
Voided Contract Would Threaten Trade
Contract voiding represents the most severe potential outcome.
The collective bargaining agreement permits the NBA to void a player’s contract if the league determines that both the player — or someone acting on his behalf — and the team participated in prohibited salary-cap circumvention. Punishment against the Clippers alone would not automatically invalidate Leonard’s deal.
If Leonard’s contract were voided before the trade closed, the current agreement could not be completed as constructed. His approximately $50 million salary is essential to the financial mechanics. Toronto would retain Ingram, Dick and its draft picks while waiting to learn whether it could pursue Leonard separately.
The more dangerous outcome would be a voiding after the trade became official. CBS Sports reported that Toronto could lose Leonard without automatically recovering the players and picks it surrendered.
Adding Watson and Denver would make any attempt to unwind the transaction even harder, with Toronto’s assets potentially distributed between two teams.
The Raptors are not waiting because they cannot decide whether Watson makes the trade worthwhile. They are waiting to learn whether the centerpiece of the deal will be eligible to play for them and whether the contract they are acquiring will still exist.
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