The Los Angeles Clippers are prepared to pursue arbitration depending on the severity of any penalties the NBA may impose following its investigation into alleged salary-cap circumvention involving Kawhi Leonard, sources told The Stein Line.

The organization has maintained since the investigation began that it did not funnel funds to Leonard through Aspiration or violate the league's collective bargaining agreement in any other way. Steve Ballmer is expected to pursue all available remedies to counter potential sanctions, according to sources.

Leonard has received public backing from the players' association throughout the process. NBPA executive director David Kelly told reporters in Las Vegas last month that the union does not believe "there's a there there" regarding any wrongdoing tied directly to Leonard's various endorsement arrangements during his time with the Clippers.

Some league sources believe the investigation may be closer to completion than publicly indicated, with expectations that a resolution involving some level of sanctions against the Clippers could emerge within the next six weeks, potentially clearing the way for the Leonard trade to be finalized.

Adam Silver addressed the investigation's progress in mid-July.

"My understanding is that Wachtell is now in the process of going through the information that they have gathered and drawing conclusions from that information," said Silver. "And I think, yes, it is realistic to think that this can be wrapped up, and I would say needs to be wrapped up, before the beginning of the next season."

The allegations were first reported by Pablo Torre last September in a series of podcast episodes.