Feds Open Criminal Probe Into Clippers Payments

Feds Open Criminal Probe Into Clippers Payments

Kawhi Leonard, a basketball player for the Los Angeles Clippers, dribbling a basketball on the court.
Kawhi Leonard, forward for the Los Angeles Clippers, during a game.Illustration: The Frank

The News

Federal prosecutors have opened a criminal investigation into the Los Angeles Clippers over allegations the team circumvented the NBA's salary cap to compensate star forward Kawhi Leonard, The New York Times reported Wednesday.

The Justice Department is investigating whether the Clippers used under-the-table payments to get around the NBA's salary cap in its dealings with Leonard, according to The New York Times.

The inquiry is being handled by the U.S. attorney's office in Brooklyn and is in its earliest stages, the Times reported, leaving it unclear whether criminal charges will follow.

It lands days after the NBA punished the franchise by stripping it of five first-round draft picks, the Daily Mail reported.

What Investigators Are Looking At

The allegation at the center of the case is that money reached Leonard outside his NBA contract — payments that would have let the Clippers exceed the league's salary cap, according to reporting by the Times, the New York Post and the Daily Mail.

No charges have been filed, and the sources reporting the investigation describe it as at the beginning stages.

Timeline

Early July 2026

The Clippers and the Toronto Raptors agree on the framework of a Kawhi Leonard trade, which as of this week has gone more than two months without being formally completed, Heavy reported.

Early September 2026

The NBA penalizes the Clippers over its findings, stripping the team of five first-round picks, according to the Daily Mail.

Sept. 10, 2026

The New York Times reports that the U.S. attorney's office in Brooklyn has opened a criminal inquiry into the Clippers' dealings with Leonard. ESPN, the New York Post, TMZ and the Daily Mail follow the report.

Reactions

The Clippers have pushed back on reporting about the stalled Leonard trade, according to Heavy, which said new reporting points to a different reason for the delay in sending him to Toronto.

Newsweek, citing a report, said the Clippers could be weighing something "even more drastic" against Leonard while the trade remains unfinished.

Heavy wrote that the Justice Department inquiry puts Leonard's NBA future in doubt.

Former NBA star Carmelo Anthony declined to engage with the story when asked about it at New York Fashion Week, laughing off questions and noting he was not at a basketball press conference, TMZ reported.

What's Next

Because the investigation is in its opening phase, prosecutors have not signaled whether anyone will be charged.

The unresolved trade is the other open question: the Raptors are "eager" to formally complete the Leonard deal with training camp near and the 2026-27 regular season roughly a month away, Heavy reported.

More

The story is being carried across the political spectrum — from the center-left New York Times, which broke it, to center outlets including ESPN and TMZ and right-leaning outlets including the New York Post and the Daily Mail — with no dispute so far over the core fact that a federal criminal inquiry exists.

Poll

Should the Justice Department be prosecuting salary-cap violations in pro sports?

Yes — it's fraud, not a game
0.0%
No — leave it to the NBA
0.0%
Depends what prosecutors find
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