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[SPORTS] · United States, Canada · 30 sources

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Los Angeles Clippers face federal probe and NBA sanctions

The Los Angeles Clippers are facing a dual crisis involving NBA disciplinary actions and a new federal criminal investigation. Following a year-long league probe, the NBA determined the franchise engaged in a "pattern of misconduct" by using secret endorsement deals to circumvent salary cap regulations for star player Kawhi Leonard.

As punishment, the NBA fined the Clippers $30 million and stripped them of five first-round draft picks from 2029 to 2033. Owner Steve Ballmer has been suspended from all team and league activities for one year, and basketball operations president Lawrence Frank received a six-month suspension. Kawhi Leonard was fined $700,000 for failing to reimburse the team for personal expenses but faces no suspension.

The situation has escalated following reports that the U.S. Department of Justice, specifically the U.S. Attorney’s Office in Brooklyn, has opened a criminal investigation into the matter. Prosecutors are reportedly examining whether these off-the-books sponsorship arrangements, including a significant deal with Aspiration Partners, constituted illegal compensation. The Securities and Exchange Commission is also seeking information regarding Leonard’s business relationship with Daktronics.

Amidst these legal challenges, a long-discussed trade that would send Leonard to the Toronto Raptors—in exchange for Brandon Ingram, Gradey Dick, and various draft assets—remains in limbo as the Clippers reorganize their front-office structure following the recent executive suspensions.

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Kawhi Leonard · Los Angeles Clippers · NBA · Steve Ballmer · Toronto Raptors · U.S. Department of Justice

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