The federal prosecutor’s office in Brooklyn opened a criminal case on the fact Clippers following allegations that the team was skirting the NBA salary cap Kawhi Leonard more than his regular salary through a series of “no-show” endorsement deals, it is reported Michael C. Schmidt, William K. Rashbaum and Santul Nerkar of The New York Times.
Two people familiar with the matter said the criminal investigation “is in its very early stages,” according to The New York Times.
According to Schmidt, Rushbaum and Nercar, the U.S. Attorney’s Office in Brooklyn has begun reviewing the allegations against the NBA announced the results — and the main fines — his investigationwhich was conducted by the firm Wachtell, Lipton, Rosen & Katz and was started series of last year’s reporting by investigative journalist and podcast Pablo Torre.
While it’s unclear exactly what prosecutors are looking into for possible crimes, they have issued at least one subpoena related to the investigation, the two sources told the Times.
The Clippers have long maintained that they did nothing wrong compelling evidence on the contrary. The collective issued a statement strongly suggesting he is considering a lawsuit against the league; Schmidt, Rashbaum and Nerkar hear that’s one option the Clippers are considering, while another is asking a judge to issue an injunction.
Two people familiar with the federal investigation, who spoke on condition of anonymity, cautioned that it was unclear whether the investigation would lead to criminal charges — or even if the evidence would be presented to a grand jury.
The Eastern District of New York has a long history of litigating pro sports integrity cases, the author notes, including numerous investigations involving the NBA and illegal sports betting.
This new criminal investigation is technically the second federal investigation into the Clippers’ relationship with Leonard. As Schmidt, Rashbaum and Nerkar write, Daktronics — one of the companies at the center of the NBA’s investigation — recently acknowledged in an earnings report that the Securities and Exchange Commission was reviewing the company’s endorsement deal with Leonard.
