Key Takeaways
- The Justice Department has opened a preliminary criminal investigation into the Los Angeles Clippers’ alleged salary-cap circumvention through Kawhi Leonard’s sponsorship deals, sources tell the New York Times.
- Federal prosecutors have reportedly issued two subpoenas, but the inquiry may not lead to criminal charges.
- The Clippers previously vowed to “vigorously challenge” the NBA’s punishment, which included a $30 million fine and one-year suspension for team governor Steve Ballmer, and the loss of five first-round draft picks.
Just over a week after the NBA imposed the harshest punishment in league history on the Los Angeles Clippers following a year-long investigation into alleged salary cap circumvention through sponsorship deals involving Kawhi Leonard, the Justice Department has opened an inquiry of its own.
The New York Times is reporting that federal prosecutors are in the very early stages of a criminal investigation into the allegations against the Clippers that resulted in the NBA issuing a $30 million fine and one-year suspension for team governor Steve Ballmer, the loss of five-round picks, and more.
Sources tell the newspaper that two subpoenas have been issued. While details regarding the probe remain scarce, it has been stressed that an investigation does not mean criminal charges are imminent or the process will advance beyond this preliminary stage.
In its statement following the league’s decision, the Clippers said the team would “vigorously challenge these findings and penalties through every avenue available to us.”
According to Sportico, the Clippers could sue the NBA by making a number of accusations, such as antitrust law violations or breach of fiduciary duty, but it would still be a considerable uphill battle.
