Photo: Luke Hales / Getty Images Sport / Getty Images
The Los Angeles Clippers are under federal investigation following severe penalties from the NBA for circumventing the salary cap. Federal prosecutors in New York have launched an inquiry into the team's financial dealings with star forward Kawhi Leonard. According to ESPN, the investigation is in its early stages, with at least one subpoena issued.
The NBA recently fined the Clippers $30 million, stripped them of five first-round draft picks, and suspended owner Steve Ballmer and two executives for allegedly paying Leonard through a no-show promotional job. The league's investigation, conducted by law firm Wachtell, Lipton, Rosen & Katz, revealed multiple significant rules violations by the Clippers, including facilitating off-court income opportunities for Leonard. The NBA's penalties are final and binding, as confirmed by an agreement with the National Basketball Players Association (NBPA).
NBA Commissioner Adam Silver expressed disappointment over the violations, stating, "The severity of the penalties reflects the seriousness of the violations." The Clippers have denied any wrongdoing and plan to challenge the findings. Yahoo Sports reported that Leonard, who has been traded to the Toronto Raptors, will pay a $700,000 fine but will not face suspension.
The federal investigation adds another layer of scrutiny to the Clippers' situation, with potential legal consequences on the horizon. The team faces significant challenges as it navigates the aftermath of the NBA's penalties and the ongoing federal probe.