Updated
Updated · The New York Times · Sep 10
Justice Department Probes Clippers Over Kawhi Leonard Cap Evasion Allegations, Issues at Least 1 Subpoena
Updated
Updated · The New York Times · Sep 10

Justice Department Probes Clippers Over Kawhi Leonard Cap Evasion Allegations, Issues at Least 1 Subpoena

3 articles · Updated · The New York Times · Sep 10

Summary

  • Federal prosecutors in Brooklyn have opened an early-stage criminal investigation into whether the Los Angeles Clippers used secret sponsorship deals to compensate Kawhi Leonard beyond the NBA salary cap.
  • At least 1 subpoena has already been issued, though the inquiry’s targets, scope and possible charges remain unclear.
  • The scrutiny centers on endorsement contracts Leonard signed and whether owner Steve Ballmer and other team executives helped arrange them as off-books compensation.
  • The Justice Department began examining the matter before the NBA last week imposed severe penalties on the Clippers, Ballmer and 2 top executives after a league-commissioned law firm found broad rule-breaking.

Insights

Will the federal probe into Kawhi Leonard’s secret endorsements uncover a loophole that threatens the entire NBA salary cap system?
Could Steve Ballmer’s alleged scheme to bypass NBA pay limits result in federal criminal charges for Clippers executives?