Federal prosecutors in Brooklyn have opened a probe into the dealings that already cost the Clippers $30 million and five first-round picks.
The NBA's punishment for the Los Angeles Clippers salary cap scandal was supposed to be the end of it.
Instead, the story got worse this week when federal prosecutors from the U.S. Attorney's office in Brooklyn opened a criminal investigation into the same dealings that led to the league's penalties.
The New York Times reported that investigators have issued at least one subpoena related to the inquiry, which is still in its earliest stages, and the outcome could carry consequences well beyond basketball.
What Is Already Known
The league announced its penalties on September 2, fining the Los Angeles Clippers $30 million, stripping five first-round draft picks from 2029 through 2033, suspending owner Steve Ballmer for one year from all league and team activities, and suspending president of basketball operations Lawrence Frank for six months without pay.
Forward Kawhi Leonard was fined $700,000 for personal expense restitution but was not suspended from playing.
The investigation found that four companies, including Aspiration Partners, were involved in arrangements that the league determined amounted to salary cap circumvention.
Former business manager Dennis Robertson received a five-year ban from the league.
Leonard addressed the situation during Clippers media day last September when he said the NBA would handle its process.
"The NBA is going to do their job. None of us did no wrongdoing. That's it. We invite the investigations," Leonard said.
"It's not going to be a distraction for me or my team."
Why the Federal Probe Changes Things
NBA fines and draft pick losses are painful but survivable for a franchise with Ballmer's resources.
A federal criminal investigation is different, because the legal standard for wrongdoing under federal law is higher and the potential penalties reach beyond the sport.
The probe does not guarantee that charges will follow, and multiple reports have noted that the investigation is still early, but prosecutors have already issued at least one subpoena, which means the inquiry has moved past a preliminary review.
Guard Kris Dunn played all 82 games last season and center Brook Lopez provided rim protection in 75 appearances, and the players on the current roster have done what they can to keep the focus on the court while the front office handles the fallout.
What It Means for the Clippers
The Clippers are trying to build a competitive team around guard Darius Garland and forward Brandon Ingram while missing five future first-round picks, and a federal investigation on top of that makes planning even harder.
The Leonard trade to Toronto is still not officially finalized while the league monitors the situation, and the DOJ probe adds another variable to a deal that has been frozen behind league review for months.
Ballmer's suspension runs through next September, and the franchise is operating under a five-year compliance program that adds oversight to every major financial decision.
What started as a sponsorship arrangement has turned into a legal problem that could hang over the organization for years, and the team's ability to attract free agents and trade partners going forward will depend on how quickly the Clippers can move past it and demonstrate stability to the rest of the league.
