The NBA investigation into whether the Los Angeles Clippers skirted salary cap rules in compensating Kawhi Leonard might stretch into 2027 if the sides fail to align on conclusions or any discipline, sources familiar with the matter told ESPN.

Union officials close to the National Basketball Players Association indicated the group would pursue arbitration if the league imposed sanctions without strong proof, given the Clippers have rejected the claims since the probe launched nearly ten months ago.

NBPA executive director David Kelly stated in Las Vegas on July 9 that he saw no substance to suggestions the Clippers routed extra pay to Leonard via a 28 million dollar endorsement pact with the bankrupt firm Aspiration, which also held a long term deal with the franchise.

When asked about possible penalties based on work by the New York law firm Wachtell Lipton leading the review, Kelly said nothing he had reviewed supported such action.

One insider warned against outsiders claiming insight into the firm's progress or guessing at outcomes based on the inquiry's duration.

Commissioner Adam Silver noted on July 14 that the matter involves bankruptcy proceedings and hesitant witnesses, making it complex.

Without consensus among the Clippers, the union and the league, a jointly selected neutral arbitrator could order documents, testimony and further discovery, with any ruling subject to a three person appeals panel whose decision stands.

This process, required under the collective bargaining agreement for cap circumvention claims, would decide if Silver can discipline the team over allegations of funds directed to Leonard through Aspiration.

Silver said July 14 the review must conclude before the next season starts and has already lasted longer than hoped.

The league had no immediate comment on Wednesday.

If clear evidence of circumvention emerges after the September start prompted by podcasts from former ESPN contributor Pablo Torre, the parties might settle findings and discipline without arbitration.

Possible penalties under the CBA include fines up to 7.5 million dollars, loss of draft picks, voided player contracts and suspensions of up to one year for involved team staff.

The Clippers continue to deny any funneling of money to Leonard and a team source said they would contest the matter fully, including arbitration.

Added pressure comes from a proposed trade sending Leonard to the Toronto Raptors for Brandon Ingram, Gradey Dick, unprotected first round picks in 2031 and 2033, a 2027 first round pick swap and two second round selections.

The teams agreed to the deal on June 30 but announced nine days later it was paused after learning the Raptors would assume risk for any penalties to Leonard, such as suspension or contract voiding.

Both clubs still aim to finish the trade, though arbitration could affect timing.

Beyond cap circumvention penalties, any sanctions for the Clippers or Leonard remain unclear, with recent reports noting the probe has widened to another unreported Leonard endorsement and unreimbursed team expenses for the player.

Sources who know Silver say he will not be influenced by outside pressure and will base decisions strictly on evidence to avoid either a cover up or unfounded overreach.

Silver acknowledged on July 14 the frustration over the length of the review while stressing the need for due process and a thorough examination of the facts.