Clippers face federal criminal probe after NBA punishes team over Kawhi Leonard deals
Federal prosecutors and a grand jury are now probing whether Steve Ballmer and the Los Angeles Clippers arranged secret deals to pay Kawhi Leonard.
TL;DR
- Federal prosecutors have launched a criminal investigation into the Los Angeles Clippers for allegedly arranging secret sponsorship deals for Kawhi Leonard to bypass the NBA's salary cap.
- The U.S. Attorney's Office for the Eastern District of New York is handling the inquiry, which began before the NBA announced its penalties against the Clippers.
- The NBA's penalties included a $30 million fine, forfeiture of five first-round picks, and suspensions for owner Steve Ballmer and two top executives.
- Investigators are scrutinizing undisclosed endorsement deals, including a reported $28 million agreement with Aspiration Partners, which later went bankrupt.
- The Securities and Exchange Commission (SEC) has also entered the investigation, requesting records related to sponsorship agreements with Leonard.
- Leonard's uncle and manager, Dennis Robertson, received a five-year ban from the NBA, and Leonard was ordered to pay $700,000 in restitution.
- The Clippers have vehemently rejected the NBA's findings, calling the investigation biased and stating their intent to challenge the penalties.
- Leonard stated he accepts responsibility for lapses in judgment by his inner circle and entered his Clippers contract in good faith, without knowledge of efforts to circumvent the salary cap.
- Ballmer and the Clippers are considering a federal lawsuit against the NBA, but the criminal investigation could complicate this effort.
- A grand jury has reportedly issued at least one subpoena in connection with the federal investigation.