![\"Kawhi](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/09\/GettyImages-2256356710.jpg\")
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Kawhi Leonard was fined $700,000 for his role in the Clippers’ salary-cap circumvention. Sean M. Haffey \/ Getty Image<\/p>\n
The Department of Justice has opened a criminal investigation into the LA Clippers\u2019 alleged circumvention of the NBA salary cap through a series of endorsement deals with Kawhi Leonard, The New York Times reported<\/a> Thursday.<\/p>\n Citing people briefed on the matter who spoke on condition of anonymity to discuss an ongoing investigation, The Times reported that the U.S. attorney\u2019s office in Brooklyn is leading the investigation, which is in its early stages.<\/p>\n The people did not reveal the target of the probe or what potential crimes are under review. They also said it was unclear whether the inquiry would lead to criminal charges or be presented to a grand jury, but prosecutors have issued at least one subpoena.<\/p>\n The Athletic reached out to the Clippers and the attorney\u2019s office for comment, but did not receive an immediate response from either. A spokesman for the NBA declined to comment on the report.<\/p>\n Pablo Torre reflects on the NBA’s historic ruling in the Kawhi Leonard case<\/p>\n The report comes a week after the Clippers were severely punished by the NBA<\/a> for funneling millions to Leonard through four separate endorsement deals with team sponsors, including one with Aspiration first uncovered by journalist Pablo Torre on his podcast \u201cPablo Torre Finds Out.\u201d<\/p>\n The NBA stripped the Clippers of five first-round draft picks and fined the franchise $30 million after a yearlong investigation concluded the team circumvented the league\u2019s salary cap rules in signing Leonard to multiple long-term contracts. Team owner Steve Ballmer was suspended a year \u201cfor knowingly seeking to help Mr. Leonard obtain off-court income opportunities,\u201d according to the NBA. Two other executives were also suspended for their roles, including team president Lawrence Frank for six months, and Leonard was fined $700,000.<\/p>\n The Clippers vowed to fight the NBA\u2019s punishment and \u201cvehemently\u201d rejected the investigation conducted by the law firm Wachtell Lipton, with attorney David Kelley calling it a \u201cwitch hunt<\/a>\u201d that was the product of \u201ca heavily biased investigation seeking to justify a predetermined narrative rather than facts and evidence.\u201d<\/p>\n