Exactly, which is why the idea that Leonard HAS to be hurt beyond repair for him to fail it was unfounded. Maybe this thread was about Kawhi's knee being ruined and SA being forced to take whatever discounted price was necessary to get him. Maybe MannyisGod had a point there. But I don't think that's reasonable to speculate about. If PATFO didn't know Kawhi was injured enough to warrant him failing a physical almost a full year after they diagnosed him as essentially fine, then that's a huge black mark on the organization. As I said, the implications of that would be franchise-destroying and not really worth ignoring for a discussion of a first-round pick.
Rather, this premise seemed to be about the Raptors finding something relatively minor and decided the fail the physical because of it. As I said, this is a tactic teams use from time to time to control transactions. Because then, the Raptors can try to hold PATFO hostage and threaten to back away from the trade if they don't get a better deal. In that case, you tell them to off. Even if they find what I suspect to be the truth (that Leonard's knee will be an issue for the rest of his career), you don't discount on what's already a one-percent package, because Leonard's value already reflected the assumption that he IS injured. Kawhi already had more value to SA than the package they got back. Making that difference greater isn't really an option for me at this point.
SA had leverage over Toronto as soon as the trade was leaked. The Raptors have already irreparably damaged their relationship with DeRozan. The Spurs on the other hand likely improved their relationship with Leonard. If this trade were to fall apart, both Kawhi and PATFO could decide it's best for him to come into camp and show he's healthy. That would kill the trade rumors and let the sides have a chance to heal. Then they could hold onto Leonard until 12/15 and try everything again, if a trade were even necessary. Of course, both sides could and probably do have too much bad blood between them to ever really make up. But it would be nothing compared to the mess Ujuri would have on his hands after lying to DeRozan AND still have to hold onto him. They'd probably have to Odom him to another team anyway for a much worse player and from an even weaker position. Would absolutely sink that franchise.