From CBS Sports · · 1m 50s
Clippers face federal criminal probe over Kawhi Leonard
Federal prosecutors in Brooklyn have opened a criminal investigation into the Clippers' salary cap violations involving secret endorsement deals with Kawhi Leonard.
In brief
Federal prosecutors in Brooklyn have opened a criminal investigation into the Clippers' salary cap violations involving secret endorsement deals with Kawhi Leonard. The Clippers' salary cap circumvention scheme has escalated from NBA penalties to a federal criminal investigation, with prosecutors examining whether…
Clippers hit with federal probe
The U.S. attorney's office in Brooklyn has opened a criminal investigation into the Clippers' salary cap violations involving Kawhi Leonard, just days after the NBA handed down major penalties.
Secret endorsement deals under scrutiny
Prosecutors are examining a series of secret endorsement deals that Leonard signed and whether owner Steve Ballmer and other executives helped facilitate them to compensate him beyond the NBA's salary cap limits.
Daktronics confirms SEC involvement
Daktronics, one of the companies involved in Leonard's endorsement deals, disclosed that both the SEC and NBA have requested information, and the company is cooperating with the federal probe.
“The Securities and Exchange Commission is seeking information from us concerning the company and Mr. Leonard.”
Brooklyn's track record on sports crimes
The Brooklyn U.S. attorney's office has spent nearly two decades prosecuting sports integrity cases, including an NBA referee gambling scheme and widespread FIFA corruption involving 150 million dollars in bribes.
Leonard trade remains on hold
Kawhi Leonard remains on the Clippers roster as a proposed trade to the Raptors has been delayed since late June pending the investigation's completion. He was not suspended or had his contract voided.
Clippers vow to fight findings
The Clippers are rejecting the NBA's investigation findings and say they will vigorously challenge the penalties through arbitration, claiming the league's private and public positions differed.
“we will now fight just as hard to demonstrate our innocence”
No charges guaranteed yet
The federal investigation is in its earliest stages and prosecutors have issued at least one subpoena. No criminal charges have been filed against the Clippers or Ballmer at this time.
Here's the gist
The Clippers' salary cap circumvention scheme has escalated from NBA penalties to a federal criminal investigation, with prosecutors examining whether owner Steve Ballmer and executives facilitated undisclosed endorsement deals to circumvent league rules.





