DOJ Reportedly Probing LA Clippers Salary Cap Scandal After NBA Suspends Steve Ballmer
It's unclear if the probe will lead to criminal charges but the report comes just a week after the NBA handed down a series of harsh punishments against the Clippers.
The Justice Department has begun a criminal investigation into allegations that the Los Angeles Clippers used undisclosed endorsement deals to inflate the income of their star player, Kawhi Leonard, in violation of the NBA's salary cap, according to a report by the New York Times. The inquiry, which is reportedly in its initial stages, is being conducted by prosecutors from the U.S. Attorney’s Office in Brooklyn.
The DOJ probe commenced before the NBA imposed its own penalties on the Clippers, including a one-year ban on the team and a $30 million fine, as well as the forfeiture of five first-round draft picks from the 2029-2033 NBA Drafts. The NBA investigation revealed that Daktronics, a company providing electronic signage and scoreboard services, had paid Leonard $18 million through endorsement agreements that were deemed "unusual" by the NBA's third-party probe, conducted in August 2021.
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