Kawhi Leonard has agreed to a two-year, $115 million contract extension with the Toronto Raptors, according to ESPN. The deal comes on the heels of the NBA's lengthy investigation into Leonard's dealings with Aspiration and several other sponsors. The Los Angeles Clippers were stripped of five first-round picks as a result of that cap circumvention investigation, but Leonard was only fined $700,000 with no suspension or voided contract. His trade to Toronto, initially agreed to in June, was completed after the investigation concluded.
Leonard's new deal with the Raptors will come in slightly below his maximum salary, the second straight contract for him in which that has been the case. Because Leonard, 35, was just traded, he was limited to a 20% raise in the first year of his new deal. Had he waited six months to extend, he would have been eligible for his true maximum, which at that point would have been closer to $128 million. In exchange for that slight discount, Leonard received a player option for the 2028-29 season from the Raptors. Though Leonard "expects" to finish his career with the Raptors, per ESPN, that player option will allow him to become a free agent in the summer of 2028, when he is 37.
This extension was limited to two years because of the over-38 rule, but Leonard will be able to sign a multi-year deal in 2028, presuming he still has the value to command one.
The Raptors returned to the playoffs last season after a three-year drought and pushed the Cleveland Cavaliers to seven games in the first round despite several serious injuries. Now, in swapping out Brandon Ingram and Gradey Dick for Leonard, they hope to take the next step from plucky playoff team to genuine championship contender.
Toronto's last trade for Leonard yielded a championship. And with a young and deep roster around him, the hope is that this deal will as well.