Federal prosecutors in Brooklyn have opened a criminal probe into whether the Clippers helped arrange undisclosed endorsement deals for Kawhi Leonard to dodge the NBA salary cap, signaling a federal layer to a case already under NBA scrutiny.

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

The investigation cites a Wachtell, Lipton, Rosen & Katz review that found misconduct related to Leonard’s off-court income opportunities and triggered federal attention.

The U.S. attorney’s office in the Eastern District of New York is conducting the probe, which is in early stages and has issued at least one subpoena.

Details on who is being scrutinized, what exactly is being examined, and whether charges will follow remain unclear as the federal inquiry progresses.

The inquiry involves federal authorities and is part of a broader review that includes the issuance of subpoenas linked to Leonard’s endorsements.

Connie Ballmer’s notable charitable giving and sponsorship-related allegations are mentioned, but they are not central to the criminal case.

The Brooklyn U.S. Attorney’s Office, known for handling notable sports integrity cases, is overseeing this matter.

Regulators have examined sponsorship records tied to Aspiration Partners and related sponsorships, including Daktronics’ records at the Intuit Dome.

The NBA has issued its verdict, and federal prosecutors are reviewing the accompanying documentation to determine if further actions are warranted.

The investigation adds a federal dimension, with the SEC also seeking information from Leonard and Daktronics regarding the endorsement arrangements.

Leonard remains on the Clippers’ roster, with no NBA suspension or contract nullification yet, while a separate trade back to Toronto has been paused.