New Kawhi Leonard Rumors on Heat Trade and Clippers Contract Pay Cut in NBA Free Agency

With one year remaining on Kawhi Leonard's current contract, the Los Angeles Clippers will entertain a team-friendly extension while also exploring trade options involving the star forward.

On the latest episode of The Hoop Collective podcast (starts at 36:40 mark), ESPN's Tim MacMahon explained the Clippers would want Leonard to take a pay cut if the two sides talk about a new deal and they will also look into potentially dealing him depending on how negotiations go:

"My understanding is if there's going to be an extension there's going to be some legitimate negotiations. This isn't just, 'can you take a little haircut?' He's going to have to take a pay cut, I believe, to extending with the Clippers. So, we'll see. I think it's extend him with a pay cut or explore the trade market. I think those are the two real options. And obviously with this youth movement, they've positioned themselves to where hey, if it's explore the trade market, they've already kind of started the post-Kawhi transition despite the fact that they still have some picks that they owe."

One potential destination for Leonard if the Clippers look to trade him could be the Golden State Warriors. They figure to be aggressive as they try to win at least one more title with Stephen Curry still playing at a high level.

ESPN's Anthony Slater and Ramona Shelburne reported in April that Golden State officials checked in with the Clippers about Leonard prior to the trade deadline.

Per The Athletic's Sam Amick, the Miami Heat have Leonard on their "Plan B" list if they are unable to work out a trade with the Milwaukee Bucks for Giannis Antetokounmpo.

Amick, who also cited the Warriors as having interest, did note Leonard's situation is complicated for many teams around the league scouring the trade market because "no one seems to know" if he's actually available.

The Clippers seemed to indicate during the 2025-26 season that they wanted to reset things. They traded Ivica Zubac to the Indiana Pacers and James Harden to the Cleveland Cavaliers in separate deals.

Those trades brought Darius Garland and two first-round draft picks, including one that became the No. 5 selection in 2026, to the Clippers.

Leonard stepped up his game by turning in one of the best seasons of his career. He averaged a career-high 27.9 points on 50.5 percent shooting, 6.4 rebounds and 3.6 assists per game in 65 starts to finish seventh in MVP voting.

Given where the Clippers are at with their roster right now, Leonard's fit is unclear. If they believe there's a path to being a top-tier contender, extending him would make sense.

One potential sticking point in any Leonard trade is Clippers governor Steve Ballmer. Slater reported on Wednesday that Ballmer has "maintained a firm stance" against trading Leonard and wants to continue building around him.

The cost to extend Leonard will be interesting because Leonard's success this season gives him some leverage in negotiations, but the counter to that would be he will turn 35 on June 29 and has a well-documented injury history.

Leonard is owed $50.3 million in 2026-27, the final season of a three-year, $149.5 million signed in January 2024. He has spent the past seven seasons with the Clippers.

Los Angeles hasn't won a playoff series since reaching the Western Conference Finals during the 2020-21 season.