A federal investigation has been launched against the Clippers for circumventing the NBA's salary cap (maximum salary limit) to cover Kawhi Leonard’s salary.
The league has already penalized the LA team and the player, but the case is now moving to the criminal level, under the supervision of the U.S. Attorney’s Office for the Eastern District of New York (in Brooklyn).
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The NBA’s investigation lasted nearly a year and revealed “a pattern of misconduct and multiple serious violations of the league’s regulations by the Clippers organization, which had also been found to have previously violated salary cap rules.”
The NBA imposed a severe penalty on the team, which included the forfeiture of five future first-round draft picks, a $30 million fine, and a one-year suspension for owner Steve Ballmer, while the 35-year-old superstar was fined $700,000.
The U.S. Attorney’s Office for the Eastern District of New York has been involved in high-profile investigations involving the NBA for nearly 20 years. In 2007, in collaboration with the FBI, it prosecuted former NBA referee Tim Donaghy, who admitted to betting on games he officiated. The referee pleaded guilty to conspiracy to commit wire fraud and conspiracy to transmit gambling information.
In 2025, the Eastern District U.S. Attorney’s Office filed charges against the then-coach of the Blazers, Chonsey Billups, the then-guard for the Heat, Terry Rozier, and former NBA guard and assistant coach, Damon Jones, as part of two extensive investigations into illegal sports betting and rigged poker games under the cover of the Mafia.
This year, the same agency also brought charges against former NBA players Malik Beasley and Ed Davis as part of a case involving an alleged sports betting ring.
*photo source: AP
