Overview
- Federal prosecutors in the U.S. Attorney’s Office for the Eastern District of New York have opened a preliminary criminal investigation and issued at least one subpoena into the Clippers’ role in arranging off‑book sponsorships tied to Kawhi Leonard.
- The NBA on Sept. 2 fined the Clippers $30 million, stripped five future first‑round picks and suspended owner Steve Ballmer for one year after a Wachtell, Lipton, Rosen & Katz report found the team steered no‑show or unusually structured endorsement deals to funnel extra compensation to Leonard.
- The league’s report names four companies — Aspiration, Daktronics, Boingo and Lockton — and says the Clippers arranged introductions, offered club business as inducements and paid personal expenses that were not reported to the NBA.
- The SEC has asked Daktronics for records and the company says it is cooperating, and prosecutors’ involvement means civil litigation or arbitration by the Clippers could be delayed if witnesses assert their right against self‑incrimination.
- The EDNY has a history of pursuing sports‑integrity cases, but sources caution this early inquiry may not lead to charges while it unfolds and could reshape roster plans, the Raptors trade timeline and the Clippers’ long‑term draft assets.