
The Los Angeles Clippers were assessed serious penalties by the NBA over salary-cap circumvention practices involving Kawhi Leonard. That included a $30 million fine and the loss of five first-round draft picks.
Meanwhile, the Toronto Raptors' Leonard trade is still in limbo, though he won't be facing any sort of suspension.
New details were released Thursday revealing this situation is far from over.
Michael S. Schmidt, William K. Rashbaum, and Santul Nerkar of The New York Times reported that federal prosecutors are opening a criminal investigation into the Clippers over the alleged salary-cap circumvention practices.
NEW and BREAKING: Justice Department prosecutors have opened a criminal investigation into revelations the Clippers helped arrange secret sponsorship contracts for the star player Kawhi Leonard that circumvented the salary cap. https://t.co/0CLwBwTfdk
— Michael S. Schmidt (@nytmike) September 10, 2026
w/@WRashbaum @SantulN
"The inquiry’s scope, targets and the possible crimes being examined were unclear," they wrote. "But prosecutors have issued at least one subpoena as part of the investigation, according to the two people."
The reporters go on to explain that it's unclear if this will lead to actual charges being brought forth. Yet an inquiry being opened in the first place means the Clippers, Leonard and the NBA won't be moving on from this story just yet.
They also write how the Securities and Exchange Commission reached out to Daktronics, one of the companies "the NBA singled out in its report."
This situation comes down to a matter of integrity and honesty in professional sports. The Justice Department now tasked with investigating if some sort of criminal action took place, even after the NBA handed out its own major penalties.
For now, the inquiry is just getting underway as the season begins in over a month.
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