By Johnny Askounis/ info@eurohoops.net
The salary-cap circumvention scandal involving Kawhi Leonard has escalated into a federal criminal investigation.
According to a New York Times report, the United States Department of Justice, specifically the attorney’s office for the Eastern District of New York, is investigating the financial arrangements between the Los Angeles Clippers and their 35-year-old forward. Federal prosecutors have issued subpoenas to investigate allegations that the franchise funneled millions of dollars to Leonard via unrecorded, third-party endorsement contracts. However, sources close to the matter caution that it remains highly uncertain whether this inquiry will yield formal criminal charges or even a grand jury presentation.
This judicial intervention builds directly upon severe sanctions previously handed down by the NBA following an independent probe. The league penalized the Clippers with a massive $30 million fine, stripped them of five consecutive first-round draft picks from 2029 to 2033, and issued a one-year suspension to team owner Steve Ballmer. Key front-office executives and Leonard’s uncle, Dennis Robertson, also received lengthy bans. In response, Ballmer and the Clippers are weighing legal options against the league, including a lawsuit seeking an immediate restraining order to halt the punishments.
While the organization vehemently rejects the findings, Leonard avoided an on-court suspension, receiving a $700,000 restitution penalty instead. Despite the ongoing controversy, his pending blockbuster trade back to the Toronto Raptors is still expected to go through. Initially agreed upon in late June, the deal, which sends Brandon Ingram and Gradey Dick to Los Angeles, was paused by both franchises pending the league’s investigation.
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