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Feds Launch Criminal Investigation into Clippers-Kawhi Leonard Dealings
Confirmed
In Short: The U.S. Attorney's Office in Brooklyn has opened a criminal investigation into the Los Angeles Clippers and their financial dealings with Kawhi Leonard, according to reports.
Federal prosecutors are investigating the Los Angeles Clippers and their financial dealings with Kawhi Leonard, according to reports. The investigation, led by the U.S. Attorney's Office in Brooklyn, is in its early stages and follows the NBA's recent penalties against the team for circumventing the salary cap. At least one subpoena has been issued as part of the probe, and the investigation could extend into 2027 if the parties do not reach an agreement on the findings or a settlement, according to ESPN.
The investigation comes in addition to the Securities and Exchange Commission's ongoing inquiry into Daktronics, a scoreboard company that had an endorsement deal with Leonard. The NBA's own investigation, which has been ongoing for nearly a year, resulted in the Clippers surrendering five first-round draft picks and a $30 million fine. The NBA found a pattern of misconduct and multiple significant rules violations, leading to the harshest penalties ever imposed on a team.
Leonard must pay a $700,000 fine, and his former business manager, Dennis Robertson, is banned from conducting NBA business for five years. The Clippers and owner Steve Ballmer have denied any wrongdoing and released a statement after the NBA's findings and punishments were announced. The investigation is currently on hold until the matter is resolved, with the NBA's findings and penalties taking effect immediately.
The investigation is part of a broader scandal that has rocked the NBA, with multiple entities looking into the financial dealings between the Clippers and Leonard. The South Dakota-based company, Daktronics, revealed the investigation during its earnings call, adding to the growing list of parties involved in the ongoing probe.
What's confirmed
- The Times reported that the criminal investigation, led by the U.S. Attorney's Office in Brooklyn, is in its earliest stages.
What's still developing
- The spokesperson later added, “I don’t know what the company wants to say, or can say, given the Wachtell investigation and all that,” referring to the NBA’s investigation into the Aspiration deal, which has been ongoing for nearly a year now.
- The investigation is in its earliest stages, and it’s unclear what, if any, federal charges could come out of it, according to the report.
- The Justice Department has opened a criminal investigation into the Clippers’ efforts to secure “no-show” endorsement deals for Kawhi Leonard, the New York Times reports.