Feds Launch Criminal Probe Into Clippers Over Kawhi — SkimNews
Get the Sports newsletter
Daily sports — scores, transfers, the storylines from the leagues you actually follow. Free.
- The U.S. Attorney's Office in Brooklyn opened a criminal investigation into the LA Clippers for allegedly circumventing the NBA salary cap to compensate Kawhi Leonard, with at least one subpoena already issued.
- The NBA's yearlong investigation by law firm Wachtell, Lipton, Rosen & Katz found "a pattern of misconduct and multiple significant rules violations," punishing the Clippers with a $30 million fine, the loss of five future first-round draft picks, and a yearlong suspension of owner Steve Ballmer.
- Kawhi Leonard must pay the NBA $700,000 as part of his punishment.
- Daktronics disclosed on its Sept. 2 quarterly earnings call that the SEC had contacted the company about its dealings with Leonard — the same day the NBA announced its findings.
- League investigators found the Clippers directed a kickback from a massive scoreboard contract for Intuit Dome to Leonard via a multiyear endorsement deal worth millions, with the team even setting the deal's terms.
Why it matters: The Clippers' salary cap scheme has escalated from an internal league discipline into a federal criminal matter, putting the franchise, Steve Ballmer, and potentially Leonard in the crosshairs of prosecutors beyond the NBA's $30 million fine and draft pick forfeiture. The parallel SEC inquiry into Daktronics signals investigators are treating the alleged cap circumvention as potential fraud, not merely a labor violation.
Ask SkimNews
