Kawhi Leonard, Clippers Are Now Facing a Federal Investigation
Federal prosecutors are examining whether secret endorsement deals helped the Clippers pay Kawhi Leonard beyond NBA salary-cap limits, after the league fined the team $30 million.
- Federal prosecutors in Brooklyn have launched a criminal investigation into the Los Angeles Clippers for allegedly circumventing the NBA's salary cap to compensate star player Kawhi Leonard, The New York Times reported Thursday.
- The NBA's earlier investigation by law firm Wachtell, Lipton, Rosen & Katz found the team used phony endorsement deals to funnel money to Leonard, leading to the league stripping the Clippers of five future first-round draft picks.
- Commissioner Adam Silver imposed a $30 million fine on the Clippers, suspended owner Steve Ballmer for one year, and ordered Leonard to pay $700,000 in restitution for improper benefits received.
- Scoreboard company Daktronics disclosed earlier this month that the Securities and Exchange Commission contacted them regarding dealings with Leonard, while federal authorities have issued at least one subpoena.
- Leonard blamed "people within my inner circle" for the situation, while a proposed trade to the Toronto Raptors remains on hold and the Clippers plan to challenge the NBA's findings.
12 Articles
12 Articles
Why The Justice Department is Investigating Kawhi Leonard and the Clippers
Federal prosecutors have opened a criminal investigation into whether the Los Angeles Clippers helped arrange hidden endorsement contracts for star forward Kawhi Leonard as a way to pay him more than the NBA salary cap allowed, according to people briefed on the matter. The inquiry, in its earliest stages and being handled by the U.S. attorney’s office in Brooklyn, began before the NBA announced sweeping punishments last week. Prosecutors have i…
Kawhi Leonard, Clippers are now facing a federal investigation
The Kawhi Leonard situation is quickly going from bad to somehow even worse. Federal prosecutors have opened a criminal investigation into the allegations that Leonard and the LA Clippers circumvented the NBA salary cap through secret sponsorship arrangements, according to a report on Thursday by The New York Times. The investigation is said to be …
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