Report: Feds investigating Clippers' Kawhi Leonard dealings
Key Points:
- A federal investigation has been launched into the LA Clippers for allegedly circumventing the NBA's salary cap to compensate Kawhi Leonard, led by the U.S. Attorney's Office for the Eastern District of New York.
- The probe follows an NBA investigation that found a pattern of misconduct by the Clippers, resulting in severe penalties including loss of draft picks, a $30 million fine, and a suspension of owner Steve Ballmer.
- At least one subpoena has been issued in the federal investigation, which marks the second government inquiry into the Clippers' financial dealings with Leonard.
- The NBA's investigation revealed that the Clippers arranged a kickback to Leonard through a lucrative endorsement deal tied to a scoreboard contract for their Intuit Dome arena.
- The Eastern District of New York has a history of high-profile NBA-related investigations, including cases involving illegal sports betting and fraud involving players, coaches, and referees.