LA Clippers face DOJ criminal probe over Kawhi Leonard salary cap allegations

The Los Angeles Clippers are facing a criminal investigation by the U.S. Department of Justice following allegations of salary cap circumvention involving Kawhi Leonard. The probe, conducted by the U.S. Attorney’s Office in Brooklyn, focuses on whether the franchise used undisclosed endorsement deals to provide Leonard with off-the-books income. This federal inquiry follows a year-long NBA investigation that resulted in severe sanctions against the team, including a $30 million fine and the forfeiture of five first-round draft picks from 2029 to 2033.

As part of the NBA's disciplinary actions, Clippers owner Steve Ballmer has been suspended for one year, and basketball operations president Lawrence Frank has received a six-month suspension. Additionally, the Securities and Exchange Commission (SEC) is investigating the role of Daktronics regarding its endorsement agreements with Leonard.

Despite the legal and administrative turmoil, the Toronto Raptors are reportedly “eager” to finalize a long-delayed trade to acquire Leonard. The trade, which includes players Brandon Ingram and Gradey Dick along with multiple draft picks, was previously stalled pending the outcome of the NBA's investigation. Leonard has avoided a suspension and was instead fined $700,000 by the league, clearing a major hurdle for the transaction.