Justice Department Probes Clippers Over Kawhi Leonard Cap Evasion Allegations, Issues at Least 1 Subpoena
Updated
Updated · The New York Times · Sep 10
Justice Department Probes Clippers Over Kawhi Leonard Cap Evasion Allegations, Issues at Least 1 Subpoena
3 articles · Updated · The New York Times · Sep 10
Summary
Federal prosecutors in Brooklyn have opened an early-stage criminal investigation into whether the Los Angeles Clippers used secret sponsorship deals to compensate Kawhi Leonard beyond the NBA salary cap.
At least 1 subpoena has already been issued, though the inquiry’s targets, scope and possible charges remain unclear.
The scrutiny centers on endorsement contracts Leonard signed and whether owner Steve Ballmer and other team executives helped arrange them as off-books compensation.
The Justice Department began examining the matter before the NBA last week imposed severe penalties on the Clippers, Ballmer and 2 top executives after a league-commissioned law firm found broad rule-breaking.