NEW YORK / LOS ANGELES — Federal prosecutors in Brooklyn have opened a criminal investigation into the Los Angeles Clippers’ dealings with star forward Kawhi Leonard, the New York Times reported Thursday evening, Sept. 10, 2026, with corroboration from ESPN, Reuters/Field Level Media, and CBS Sports. The inquiry follows the NBA’s Sept. 2 punishment of the franchise for salary-cap circumvention tied to Leonard’s off-court income deals.

The U.S. Attorney’s Office for the Eastern District of New York is conducting the probe, which remains in early stages, the Times reported via people briefed on the matter. Prosecutors have issued at least one subpoena; it was unclear whether the matter would reach a grand jury or produce charges. A U.S. attorney’s office spokesperson declined to comment; Clippers and NBA spokespeople did not respond to the Times or ESPN, those outlets reported.

From league fines to a federal file

On Sept. 2 the NBA announced a $30 million fine, the forfeiture of five first-round picks (2029–2033), a one-year suspension of owner Steve Ballmer from league and team activities, and a $700,000 payment order for Leonard, after a Wachtell, Lipton, Rosen & Katz investigation found “a pattern of misconduct and multiple significant rules violations.” League findings centered on the team introducing Leonard to sponsors for endorsement income, offering team business as inducements, and related arrangements involving Boingo Wireless, Daktronics, Lockton Insurance, and Aspiration Partners — including an alleged Aspiration endorsement near $28 million alongside a long Clippers sponsorship, Reuters summarized.

Daktronics told investors Sept. 2 it had been contacted by the Securities and Exchange Commission about Leonard-related dealings and was cooperating. The Times reported the federal criminal investigation began before the NBA’s public conclusions. Ballmer and the Clippers have disputed the league findings and, per the Times’ sources, have considered suing the NBA. Leonard, through new agent Harrison Gaines, said he had “no knowledge of any intent on anyone’s part to circumvent the salary cap” and accepted “full responsibility for lapses in judgment by people within my inner circle.”

Leonard’s uncle and then-business manager Dennis Robertson was banned by the NBA for five years from team-related business. A reported June 30 agreement-in-principle to return Leonard to the Toronto Raptors has not been executed while the league probe wound down, Reuters noted.

When a salary-cap end-run graduates from league arbitration to a U.S. attorney’s office, that is the state deciding sports contracts are public business. Fans wanted basketball. They got subpoenas.

Sources