Federal Prosecutors Reportedly Probe Clippers Over Leonard Deals

Federal prosecutors in Brooklyn have opened a preliminary criminal investigation into allegations that the Los Angeles Clippers helped Kawhi Leonard circumvent the NBA’s salary cap through sponsorship and endorsement arrangements. At least one subpoena—and according to some reports, two—has been issued, though the inquiry may not lead to charges or a grand jury review. The investigation follows the NBA’s yearlong review, which found multiple violations and resulted in a $30 million fine, the forfeiture of five future first-round picks, a one-year suspension for team governor Steve Ballmer, additional discipline for team officials, and a $700,000 fine for Leonard. The NBA alleged that the Clippers helped arrange deals involving companies including Aspiration, Boingo Wireless, Daktronics and Lockton Insurance, while the team has denied wrongdoing and said it may challenge the league’s findings. The Securities and Exchange Commission has also sought information from Daktronics about its dealings with Leonard.