Early-stage federal probe
The U.S. Attorney's Office in Brooklyn has opened a criminal investigation into whether the LA Clippers helped arrange undisclosed endorsement deals for Kawhi Leonard to circumvent the NBA salary cap, at a preliminary stage with no charges filed and at least one subpoena already issued, an opening that was published by RealGM — Basketball Wiretap and Fadeaway World — NBA citing people familiar with the matter.
Kawhi Leonard, the Clippers forward at the center of the inquiry, is identified as the recipient of the endorsement contracts under review, with investigators examining what role, if any, team officials played in structuring them as additional compensation beyond the cap.
Scope and context
The inquiry is being handled by the Eastern District of New York, a district noted for pursuing cases involving professional sports leagues, and it reportedly began before the NBA's own disciplinary action against the franchise, owner Steve Ballmer and executives following the outside review conducted by law firm Wachtell, Lipton, Rosen & Katz.
Who or what is specifically targeted remains unclear and there is no indication the matter has reached a grand jury, as the franchise weighs its next steps on the disciplinary front while no criminal charges have been determined.
