DOJ Investigates Clippers and Kawhi Leonard Over Salary Cap Scandal
The U.S. Department of Justice has opened a criminal investigation into the Los Angeles Clippers’ dealings with Kawhi Leonard following the NBA’s historic penalties against the franchise.
DOJ Investigates Clippers and Kawhi Leonard Over Salary Cap Scandal
The Los Angeles Clippers and Kawhi Leonard are facing another major development after the U.S. Department of Justice opened a criminal investigation into the team's dealings with the star forward.
The federal investigation comes just days after the NBA imposed some of the harshest penalties in league history on the Clippers for violations of the salary-cap rules. According to Reuters, the U.S. Attorney's Office in Brooklyn is leading the investigation, and at least one subpoena has already been issued. A grand jury could also become involved.
NBA Already Handed Clippers Historic Punishment
The NBA completed its own independent investigation before announcing severe penalties on September 2.
The league found that the Clippers had helped create off-court income opportunities for Leonard through several companies doing business with the organization.
The investigation concluded that the Clippers facilitated endorsement agreements, offered business opportunities to companies connected with those deals and paid certain personal expenses on behalf of Leonard and his representatives.
The punishment was significant.
The Clippers were ordered to forfeit five first-round draft picks, one from each of the 2029 through 2033 NBA Drafts, and were fined $30 million.
Owner Steve Ballmer was suspended from all league and team activities for one year, while Clippers executives Gillian Zucker and Lawrence Frank also received suspensions.
Leonard was fined $700,000, while his former business manager Dennis Robertson received a five-year ban from conducting business with NBA teams and affiliates.
What Is the Federal Investigation About?
The federal investigation appears to be examining the circumstances surrounding the Clippers' alleged salary-cap violations and the financial arrangements involving Leonard.
Reuters reports that prosecutors have already issued at least one subpoena, while the investigation remains in its early stages. The possibility of a grand jury investigation adds another layer to an already serious situation surrounding the franchise.
The investigation is separate from the NBA's disciplinary process.
That distinction is important because the NBA has already completed its investigation and issued its penalties, while the federal authorities are examining whether any criminal laws may have been violated.
