Justice Department Opens Investigation Into Clippers, Kawhi Leonard

Kirby Lee-USA TODAY Sports&period;

Justice Department Opens Investigation Into Clippers, Kawhi Leonard

Originally posted on The Spun | By Tzvi Machlin | Last updated Sep 11, 2026 11:47 AM ET

Things have gone from bad to worse for Clippers owner Steve Ballmer. On the heels of crippling punishments from the NBA front office over cap circumvention, the wealthiest man in the league now seems to have the U.S. Department of Justice taking a look at his team.

The New York Times reported on Thursday that a federal investigation has been opened into the Clippers over their alleged circumvention of the NBA’s salary cap in order to pay All-Star Kawhi Leonard. The investigation is still in its early stages but is reportedly being led by the U.S. Attorney’s Office in Brooklyn.

However, neither the U.S. Attorney’s Office, the NBA nor the Clippers have given comment on the reported investigation as of writing.

SHENZHEN, CHINA – OCTOBER 11: Steve Ballmer, owner of Los Angeles Clippers speaks to media during the press conference before the match between Charlotte Hornets and Los Angeles Clippers as part of the 2015 NBA Global Games China at Universiade Centre on October 11, 2015 in Shenzhen, China. (Photo by Zhong Zhi/Getty Images)Getty Images.

Recapping the Scandal

The scandal centered on allegations that the team helped Kawhi Leonard obtain compensation outside his NBA contract, circumventing the league’s salary-cap rules. The controversy began with reporting about Leonard’s $28 million “no-show” endorsement deal with Aspiration, a company in which Clippers owner Steve Ballmer had invested.

An NBA investigation by the law firm Wachtell, Lipton, Rosen & Katz ultimately found a broader pattern involving Aspiration, Boingo Wireless, Daktronics and Lockton Insurance. Investigators concluded the Clippers steered these companies toward endorsement arrangements with Leonard, sometimes offering team business as an inducement, and improperly paid personal expenses for Leonard and his representatives. Leonard and the Clippers denied wrongdoing.

Mar 11, 2025; New Orleans, Louisiana, USA; Los Angeles Clippers forward Kawhi Leonard (2) grabs a rebound against the New Orleans Pelicans during the first half at Smoothie King Center.Credit: Matthew Hinton-Imagn Images

The NBA handed down some of the harshest penalties in league history on September 2, 2026. The Clippers were fined $30 million and forfeited five first-round draft picks, from 2029 through 2033. Ballmer was suspended from all league and team activities for one year, while Clippers business president Gillian Zucker was suspended without pay for one year and basketball president Lawrence Frank for six months. The franchise was also placed under a five-year league compliance and monitoring program.

Leonard was fined $700,000, while his uncle and former business manager, Dennis Robertson, was banned from conducting business with NBA teams for five years.

But it appears that the fallout from the scandal is far from over.

This article first appeared on The Spun and was syndicated with permission.

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