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.

Sep 11, 2026

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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 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.

Read the original on CBS Sports

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