Kawhi Leonard's return to Toronto has moved significantly closer to becoming reality.

The blockbuster trade between the Toronto Raptors and LA Clippers had been placed on hold while the NBA completed its investigation into salary-cap circumvention involving Leonard and the Clippers.

That investigation has now concluded.

While the NBA handed the Clippers and Leonard significant penalties, the league did not suspend Leonard or void his contract.

That removes one of the biggest uncertainties surrounding the proposed trade and clears a major hurdle for Leonard's return to the franchise he led to an NBA championship in 2019.

Why the Kawhi Trade Was Put on Hold

Toronto and Los Angeles agreed to a blockbuster deal earlier this summer that would send Leonard back to the Raptors.

The proposed package would see Toronto acquire Leonard while the Clippers receive Brandon Ingram, Gradey Dick, two first-round draft picks, two second-round picks and a future first-round pick swap.

But the deal was not completed.

With the NBA investigating Leonard and the Clippers over potential salary-cap circumvention, Toronto decided to wait until the investigation had concluded before finalising the trade.

The concern was straightforward.

If Leonard's contract had been voided or he had received a significant suspension, Toronto could have been acquiring a player whose situation had fundamentally changed from when the trade was originally agreed.

Now, that uncertainty has largely disappeared.

NBA Punishes Clippers but Leonard Avoids Suspension

The NBA announced sweeping penalties against the Clippers after its investigation found a pattern of misconduct and multiple significant salary-cap rule violations.

Los Angeles will forfeit five consecutive first-round draft picks from 2029 through 2033 and has been fined $30 million.

Clippers owner Steve Ballmer has been suspended from league and team activities for one year, while senior executives Lawrence Frank and Gillian Zucker have also received suspensions.

Leonard was ordered to pay the league $700,000.

Crucially for Toronto, however, Leonard was not suspended and his NBA contract remains intact.

That means the punishment does not prevent the Raptors from proceeding with their proposed trade.

Kawhi Could Be Heading Back to Toronto

Few NBA reunions would carry quite as much history as this one.

Leonard spent just one season with Toronto, but it became the most successful season in franchise history.

Acquired from the San Antonio Spurs in 2018, Leonard helped lead the Raptors through an unforgettable postseason run that ended with Toronto defeating the Golden State Warriors in the 2019 NBA Finals.

Leonard was named Finals MVP after delivering the Raptors their first NBA championship.

He left Toronto months later to join the Clippers in free agency.

Seven years later, the door is now open for him to return.

Toronto Would Be Making a Huge Win-Now Move

This isn't simply a nostalgic reunion.

Toronto would be giving up significant assets to bring Leonard back.

Brandon Ingram and Gradey Dick represent two substantial pieces of the Raptors' current roster, while the reported package also includes valuable future draft capital.

In return, Toronto would be acquiring one of the most accomplished players of his generation.

Leonard is a seven-time All-Star, seven-time All-NBA selection, two-time NBA champion and two-time Finals MVP.

He is also coming off an excellent individual season, averaging 27.9 points, 6.4 rebounds and 3.6 assists across 65 games for the Clippers.

If the trade is finalised, Toronto would be betting that Leonard can once again help turn the Raptors into a serious contender.

One Final Step Still Remains

The conclusion of the NBA investigation is significant, but the distinction is important.

Leonard has not yet officially become a Toronto Raptor.

The investigation was the major obstacle holding up the agreed trade, and the NBA's decision not to suspend Leonard or void his contract has removed that uncertainty.

The next development to watch is confirmation that Toronto and Los Angeles are proceeding with and formally completing the transaction.

Until that happens, Leonard remains a member of the Clippers.

But after weeks of uncertainty, the path back to Toronto is considerably clearer.