Federal prosecutors in Brooklyn have opened a criminal investigation into whether the Los Angeles Clippers arranged secret sponsorship contracts for star player Kawhi Leonard that circumvented the NBA salary cap. The inquiry, in its earliest stages, follows the NBA's severe punishments last week against the Clippers, owner Steve Ballmer, and two top executives after an independent investigation by law firm Wachtell, Lipton, Rosen & Katz found a wide-ranging effort to break league rules. Prosecutors have issued at least one subpoena, though the investigation's scope, targets, and potential crimes remain unclear.

The U.S. attorney's office in Brooklyn has a long history of investigating professional sports integrity, including the 2007 NBA referee gambling case and the 2015 FIFA corruption probe. The Clippers and Ballmer are considering legal action against the league, including a potential restraining order. The matter first came to light in September 2025 when journalist Pablo Torre raised questions on his podcast "Pablo Torre Finds Out." Leonard signed a three-year contract worth more than $100 million in July 2019, but the Wachtell report alleged secret endorsement deals facilitated by team executives as additional compensation exceeding the salary cap.