After all that’s happened, would it be crazy to say the controversy over the Los Angeles Clippers’ alleged salary-cap circumvention has gotten much worse? The NBA’s investigation ended with Adam Silver handing Steve Ballmer and his franchise one of the toughest punishments in league history. But after millions of dollars in fines and suspensions, this fiasco appears to be heading to court soon.
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“Federal prosecutors have opened a criminal investigation into allegations that the Los Angeles Clippers helped arrange secret sponsorship contracts for the star player Kawhi Leonard that circumvented the salary cap,” according to The New York Times.
The U.S. Attorney’s Office in Brooklyn is handling the probe, which remains in its “earliest stages.” Prosecutors have reportedly already issued at least one subpoena. But what they are examining and who may face scrutiny remain unclear as of writing. No one from the U.S. Attorney’s Office, the Clippers or the NBA has responded to this investigation yet.
“The people briefed on the matter cautioned that it was uncertain whether the investigation would lead to criminal charges, or even result in evidence being presented to a grand jury,” the latest report stated. “They spoke on the condition of anonymity to discuss a continuing investigation.”
At the center of the broader controversy are endorsement agreements that Kawhi Leonard allegedly secured through his uncle, Dennis Robertson. One agreement in particular drew significant attention. The seven-time All-Star was linked to a $28 million endorsement with Aspiration (a sustainability company) that also had business ties with the Clippers and Ballmer, which later filed for bankruptcy.
But investigative journalist Pablo Torre showcased what appeared to be the Aspiration contract, which included Leonard’s signature on the dotted line, not his uncle’s. It directly contradicted what the NBA veteran said, and ESPN had earlier reported on prior knowledge of off-the-table agreements.
Leonard acknowledged the matter and wrote that he accepts “full responsibility for lapses in judgment by people within my inner circle and regret the distraction this situation has caused the fans and my family,” further adding that he had “no knowledge of any intent on anyone’s part to circumvent the salary cap.”
Now, the NBA’s investigation concluded that a “pattern of misconduct” emerged, in which the Clippers helped create income opportunities for Leonard via four companies (Aspiration, Boingo Wireless, Daktronics and Lockton Insurance).
The Clippers were fined $30 million but have strongly disputed the league’s findings, accusing the NBA of conducting a biased investigation to push a “predetermined narrative.”
“What the league told us privately differs from what it announced today publicly, and they have not held themselves close to the standard Commissioner [Adam] Silver set at the start of this investigation to ensure its fairness and accuracy,” the Clippers said in a statement.
The franchise lost five future first-round picks, covering 2029 through 2033. Team owner Steve Ballmer faces a one-year suspension. Even the President of Business Operations, Gillian Zucker and the President of Basketball Operations, Lawrence Frank, received one-year and six-month suspensions, respectively. But the scrutiny doesn’t end there.
Although the federal investigation adds another layer to this case, it’s not the only one examining the story. The Securities and Exchange Commission sought information from Leonard and Daktronics. The company’s CFO has clarified that he is taking the matter “seriously” and cooperating with the inquiry.
Let’s also not forget that Leonard’s deal to the Raptors is pending. League insider Shams Charania earlier reported that the trade was on track after the NBA’s investigation concluded. Even Leonard smiled during a fan interaction and said, “I hope so,” when asked about his move to Toronto, where he won the 2019 championship. But things aren’t moving ahead in the public eye.
“I have not been given any indication that the Clippers are trying to get tricky here, or that they are being spiteful to Kawhi, but they are not moving forward with this trade at this point,” Insider Jake Fischer reported. “They are saying to Toronto, they are saying to Kawhi, they are saying to Brandon Ingram’s side that they’re working through their front office structure before moving forward with this.”
While the seven-time All-Star would want to put this saga behind him immediately, the federal case will add more uncomfortable questions until a decision is made. Amid this huge fiasco, however, there is a world in which the NBA wouldn’t have come raining down on Steve Ballmer if he had agreed to one thing.
Earlier this week, Pablo Torre revealed that the NBA would never have released its 35-page report except for a cover sheet, a summary of findings and a ruling. But Ballmer was “fundamentally uninterested” in making a settlement with the league, something that Silver was reportedly “looking forward to” doing.
The controversy doesn’t just end at the NBA, the Clippers, and Leonard. ESPN has also come under severe scrutiny for its recent reporting and its accuracy. Last month, Don Van Natta Jr., Baxter Holmes and Ramona Shelburne published a story, citing sources who said, “The NBA has found no evidence showing LA Clippers owner Steve Ballmer funneled money through team sponsors to pay Kawhi Leonard in order to circumvent the salary cap.”
Within the same hour, NBA Chief Communications Officer Mike Bass released an official statement debunking ESPN’s report, saying “it contains numerous and significant inaccuracies.”
Silver once said he intended for the Clippers investigation to end before the season began so Leonard could go to the Raptors. Well, their investigation did end, only raising bigger question marks over Leonard and the Clippers’ future, which currently has zero clarity.

