DOJ opens criminal investigation into Clippers' Kawhi Leonard dealings, report says
ABC7 Los Angeles • • sports
Key Points:
- A federal criminal investigation has been initiated into the Los Angeles Clippers for allegedly circumventing the NBA's salary cap to compensate Kawhi Leonard, led by the U.S. Attorney's Office in Brooklyn.
- The investigation follows a nearly yearlong NBA inquiry by law firm Wachtell, Lipton, Rosen & Katz, which uncovered a pattern of misconduct and multiple significant rules violations by the Clippers.
- The NBA imposed severe penalties on the Clippers, including forfeiture of five future first-round draft picks, a $30 million fine, and a yearlong suspension of owner Steve Ballmer.
- The probe includes at least one subpoena and is the second government inquiry into the Clippers' financial dealings with Leonard, who must pay $700,000 to the NBA as part of his punishment.
- On the same day the NBA announced its findings, the SEC contacted scoreboard company Daktronics regarding its dealings with Leonard, with Daktronics cooperating but declining further comment.
