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Just when the LA Clippers organization and All-Star Kawhi Leonard thought the investigation of their illegal salary circumvention was over, prosecutors at the U.S. Department Of Justice located in New York wanted to investigate themselves. This could go way further than the punishments the NBA threw out in early September.
The main suspect that can be federally charged is Steve Ballmer, who is the owner of the Clippers. Undoubtedly being the person controlling the circumvention. The severity of this investigation could lead to huge fines or even jail time and a permanent ban from the NBA altogether. But don’t be mistaken; he isn’t the only one who is in danger right now. People such as Clippers President of Business Operations Gilian Zucker, President of Basketball Operations Lawrence Frank, and lastly Leonard himself can also be facing federal punishment.
What Does This Mean For The Clippers?
Tennis: National Bank Open
Tennis: National Bank Open
Undoubtedly, if the Department of Justice finds solid evidence, this case can be very life-changing. The under-the-table agreement is connected to tax evasion and employment laws. The typical sentencing for tax evasion, which isn’t to this degree of $30 million, usually results in a felony charge. Evidently leading to either a six- to seven-figure fine or even five-plus years in federal prison. Aside from those charges, the department could easily blacklist Ballmer and the front office from the NBA for life.
Most notably, this is the same Justice Department that just last year busted a massive gambling scandal in the NBA. That involved insider information, illegal sports betting, and mafia-backed rigging. Sadly, many big names in the NBA were caught red-handed in this scandal. Being none other than Chauncey Billups, Terry Rozier, Damon Jones, Malik Beasley, and Ed Davis. Who all weren’t just banned from the NBA indefinitely but also all separately charged with federal crimes.
Additionally, if the same is to happen to the Clippers and their higher-ups, it will put the NBA in an uncomfortable position of having to not just deal with the backlash from critics but also have to instantly search for a new owner and front office.
What Does This Mean For Leonard?
NBA: Toronto Raptors at Portland Trail Blazers
Jan 23, 2026; Portland, Oregon, USA; Portland Trail Blazers center Donovan Clingan (23) shoots the ball over Toronto Raptors guard/forward Gradey Dick (1) during the second half at Moda Center. Mandatory Credit: Jaime Valdez-Imagn Images
Leonard can easily be facing the same consequences as the Clippers organization. The biggest one being a ban from the NBA. If he is banned from the league, it means the Clippers lose out even more by losing all the assets they would get for him. While also losing five first-round picks as their punishment. The Toronto Raptors lose out on a trade that was supposed to go down months ago. Bringing Leonard back to the Raptors for Brandon Ingram, Gradey Dick, 2 first-round picks, 1 pick swap, and 2 second-rounders.
Consequently, if he is banned, it would mean Leonard would lose all sponsorships and income that he was receiving before, which would affect his luxurious and lavish lifestyle. While also ruining his few more years of career and legacy. Evidently putting a sour taste in fans’ mouths when talking about his career and impact.
Finally, if there ends up being a federal conviction, this will easily be cemented in the league’s history.