Clippers face federal criminal probe after NBA punishes team over Kawhi Leonard deals

Federal prosecutors have launched a criminal investigation into allegations that the Los Angeles Clippers arranged secret, off-the-books sponsorship deals for Kawhi Leonard to circumvent the NBAs salary cap, first reported by The New York Times.

The inquiry is being handled by the U.S. Attorneys Office for the Eastern District of New York in Brooklyn, which has previously pursued major sports integrity cases involving NBA referee gambling and FIFA corruption.

Federal authorities began scrutinizing the Clippers alleged conduct before the NBA announced its penalties, including a $30 million fine, the forfeiture of five consecutive first-round picks from 2029 through 2033 and a one-year suspension for owner Steve Ballmer. Two top executives also received suspensions.

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The Times reported that a grand jury has already issued at least one subpoena in the investigation.

Investigators are zeroing in on undisclosed endorsement deals, including a reported $28 million agreement with Aspiration Partners.

The green finance company later collapsed into bankruptcy, while co-founder Joe Sanberg was sentenced to 14 years in federal prison for fraud.

Prosecutors are examining whether Clippers owner Steve Ballmer and team executives helped facilitate side deals that compensated Leonard beyond the NBAs salary-cap limits.

The SEC has also entered the investigation. Daktronics, which supplied displays for the Clippers Intuit Dome, confirmed that regulators requested records tied to its sponsorship agreements with Leonard.

The federal investigation significantly escalates the Clippers scandal, which the NBA called a "pattern of misconduct" after a yearlong review by the law firm Wachtell, Lipton, Rosen & Katz.

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Leonards uncle and manager, Dennis Robertson, received a five-year ban from the NBA, while Leonard was ordered to pay $700,000 in restitution.

The Clippers strongly rejected the NBAs findings, accusing the league of conducting a biased investigation designed to justify a predetermined narrative.

"We vehemently reject the NBAs findings, which are the result of a heavily biased investigation seeking to justify a predetermined narrative rather than facts and evidence," the franchise said in a statement.

The team added, "We intend to vigorously challenge these findings and penalties through every avenue available to us and look forward to an ethical and impartial arbitration process."

David Kelley, Ballmers attorney, called the NBAs investigation a "witch hunt" and a "gross injustice" in a letter to Commissioner Adam Silver.

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Kelley argued that league officials privately acknowledged facts