Federal prosecutors in Brooklyn have opened a criminal probe into whether the Los Angeles Clippers helped arrange undisclosed endorsement deals for Kawhi Leonard to circumvent the NBA salary cap, signaling a federal layer to the league’s sanctions.

The inquiry follows the NBA’s punishment package against the Clippers and Steve Ballmer, including a $30 million fine, forfeiture of five consecutive first-round picks, and a one-year owner suspension.

Investigators’ focus includes whether top Clippers executives facilitated Leonard’s off‑court income opportunities, with subpoenas reportedly issued as the probe advances.

The U.S. attorney’s office in the Eastern District of New York is conducting the early-stage inquiry, and it remains unclear what is being examined or who may be scrutinized.

At least one subpoena has been issued, and authorities have not indicated whether charges will be filed or if the case will proceed to a grand jury.

The federal investigation broadens the scope beyond the NBA’s disciplinary action, involving federal prosecutors and potentially additional documents or witnesses, including entities tied to Leonard’s endorsements.

Connie Ballmer’s substantial charitable giving and sponsorship allegations appear in context but are not central to the legal case.

Leonard remains on the Clippers' roster as a potential trade to Toronto looms, with timing affected by the ongoing investigations.

As of now, no suspension or contract voiding has occurred for Leonard, though a separate trade back to Toronto was under consideration.

Regulators are examining sponsorship records, including those involving Aspiration Partners and Daktronics at the Intuit Dome.

Brooklyn prosecutors have a history of pursuing sports-integrity cases, but this history does not guarantee charges against the Clippers or Ballmer.

The NBA’s action prompted federal review, with prosecutors assessing whether further steps are warranted.