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Clippers Face Criminal Probe in Leonard Salary-Cap Deal

By Drooid · Sep 15, 2026, 6:20 AM UTC · How we work

Summary

Clippers Investigated

Federal prosecutors opened a criminal investigation into the Clippers over a salary-cap circumvention scheme.
The Securities and Exchange Commission is requesting from Daktronics details on its $100 million contract tied to Leonard.
The NBA mandated a five-year compliance program for the Clippers organization and its personnel.
The Clippers must name a governor before approval of the Leonard trade, as the suspended owner cannot sign.

Summary

Raptors Acquire Leonard

Toronto Raptors acquired Kawhi Leonard from the Los Angeles Clippers in a trade.
Los Angeles Clippers received Brandon Ingram and Gradey Dick.
Clippers also obtained unprotected 2031 and 2033 first-round picks, a 2027 pick swap and two second-round picks.
NBA investigators fined Leonard $700,000 on Sept. 2, imposing no suspension.
Leonard will address reporters at Raptors media day on Sept. 28.

History

Historical Context

In 2005, the NBA fined the New York Knicks $1.5 million for salary-cap violations uncovered during Commissioner David Stern’s investigation. The league also stripped the Knicks of a 2006 first-round draft pick and mandated a compliance program overseen by the NBA’s legal department. Today’s Clippers probe mirrors that precedent, as federal prosecutors and the SEC examine a $100 million Leonard contract while the NBA imposes a five-year compliance plan. The earlier sanction demonstrated that league-enforced penalties and legal scrutiny can reshape team ownership structures and future trade negotiations.

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Clippers Investigated

Federal prosecutors opened a criminal investigation into the Clippers over a salary-cap circumvention scheme.
The Securities and Exchange Commission is requesting from Daktronics details on its $100 million contract tied to Leonard.
The NBA mandated a five-year compliance program for the Clippers organization and its personnel.
The Clippers must name a governor before approval of the Leonard trade, as the suspended owner cannot sign.

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