The Toronto Raptors aren’t standing still while their biggest move of the offseason remains stuck in limbo.
Toronto signed guard Malachi Smith on Monday, adding another player to its training camp mix on the same day ESPN reported a potentially significant development in the NBA’s investigation of the Los Angeles Clippers and Kawhi Leonard.
The Raptors announced Smith’s signing without disclosing financial terms. The 26-year-old guard averaged 8.3 points, 3.4 rebounds and 3.3 assists in 15 games, four starts, with the Brooklyn Nets last season while shooting 43.5% from the 3-point range.
GettyMalachi Smith of the Brooklyn Nets drives around a screen set by E.J. Liddell against RJ Barrett of the Toronto Raptors during the first half at Scotiabank Arena on April 12, 2026 in Toronto, Ontario, Canada.
Smith’s arrival is a relatively minor transaction compared with the roster move Toronto has been waiting more than a month to complete.
The Raptors agreed June 30 to acquire Leonard from the Clippers for Brandon Ingram, Gradey Dick, unprotected first-round picks in 2031 and 2033, a 2027 first-round pick swap and two second-round picks.
That blockbuster remains on hold.
Kawhi Leonard Investigation Gets Major Update
ESPN’s Don Van Natta Jr., Baxter Holmes and Ramona Shelburne reported Monday that the NBA has found no evidence that Clippers owner Steve Ballmer funneled money through team sponsors to Leonard in an effort to circumvent the salary cap.
That represents a significant development in an investigation that has prevented Toronto from officially completing its reunion with the 2019 NBA Finals MVP.
The case, however, isn’t closed.
According to ESPN, the league is examining whether the Clippers’ introduction of Leonard to sponsors itself violated salary-cap circumvention rules. Investigators have also examined a possible “failure to supervise” employees. The Clippers and NBA are now negotiating a resolution, with one source characterizing the discussions as “spirited.”
The probe initially centered on Leonard’s $28 million endorsement agreement with the now-bankrupt Aspiration. Ballmer invested $60 million in the company, while the Clippers had a $300 million sponsorship agreement with it. The investigation subsequently expanded to other companies that had relationships with the franchise.
The Clippers have consistently denied circumventing the salary cap.
Toronto Still Waiting on Brandon Ingram-Kawhi Leonard Trade
The uncertainty matters considerably in Toronto.
The Raptors and Clippers put their agreed-upon trade on hold in July after the NBA informed Toronto it would assume the risk of any potential punishment affecting Leonard if the transaction were completed before the investigation concluded.
Monday’s ESPN report offered perhaps the most encouraging development yet for the trade’s chances of eventually becoming official.
Leonard and the Raptors are operating under the expectation that the deal will be completed, according to ESPN. The report also indicated there has been no suggestion in Leonard’s recent conversations with the National Basketball Players Association that his contract will be voided.
That doesn’t give Toronto a completion date.
Commissioner Adam Silver previously described the investigation as complicated because of bankruptcy proceedings and reluctant witnesses. The league’s initial findings were presented to the Clippers in late July, according to ESPN.
So the Raptors continue conducting the rest of their offseason business.
Smith gives Toronto another guard to evaluate when training camp opens in Quebec City next month. He previously spent two seasons in the G League and could eventually be a candidate for Raptors 905 if he does not make the NBA roster.
It is hardly the roster transaction Raptors fans have spent the summer waiting for.
But with the NBA reportedly finding no evidence that Ballmer funneled money to Leonard, the move that would reshape Toronto’s season may finally be inching closer to the finish line.
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