Steve Ballmer & Kawhi Leonard’s Problems Get Worse as Justice Department Opens Criminal Investigation

U.S. Department of Justice reportedly opens criminal probe into dealings between Clippers and Kawhi Leonard.

Steve Ballmer & Kawhi Leonard’s Problems Get Worse as Justice Department Opens Criminal Investigation

Steve Ballmer and Kawhi Leonard (Image credits - Yahoo Sports)

It looks like Steve Ballmer and Kawhi Leonard‘s troubles are far from over despite the recently concluded NBA investigation. The Los Angeles Clippers and Leonard were being investigated throughout the 2025-26 campaign for hidden sponsorship deals in order to circumvent the salary cap.

The Clippers were looking to mark a new era when they signed Leonard as a free agent in 2019. Leonard was heavily pursued by the Los Angeles Lakers but declined their offer to join their crosstown rivals. Fast-forward to today, it is a decision he may be regretting for the rest of his life.

Leonard arrived in LA after lifting his second championship with the Toronto Raptors. However, the partnership between the player and organization has ended up being a total disaster both on and off the court.

The New York Times reported on Thursday that the U.S. Department of Justice has initiated its own investigation into the Clippers-Kawhi Leonard scandal.

Federal prosecutors have opened a criminal investigation into allegations that the Los Angeles Clippers helped arrange secret sponsorship contracts for the star player Kawhi Leonard that circumvented the salary cap. The investigation is in its earliest stages and is being conducted by the U.S. attorney’s office in Brooklyn.

Michael S. Schmidt on The New York Times

Last week, the NBA concluded its investigation into the scandal and took some strict actions on the organization and Steve Ballmer. They stripped the Clippers of five first-round picks from 2029 to 2033 and also fined Ballmer $30 million and handed him a one-year suspension.

Steve Ballmer responded to NBA’s ruling with legal action and took it a step further by calling it a “witch hunt”. He denied the allegations and is ready to fight in court. However, he has been dealt with another major blow after the U.S. Department of Justice opened a criminal investigation on him and the Clippers.

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Fans react to Clippers facing new federal pressure after NBA’s brutal Kawhi Leonard punishment

The NBA ruling on the Clippers is the harshest punishment in North American sports history. But things are about to get a lot more serious after Federal authorities decided to step in and investigate on the matter. The scandal includes multiple sponsorship deals between Kawhi Leonard and the Clippers with the intention to circumvent the salary cap.

Following the news of a criminal investigation being opened up on the Clippers, NBA fans had mixed reactions towards it across social media.

Fans were left bemused by the reports of a criminal investigation into the Clippers. While some were left questioning if it was a federal crime, some believe that the Clippers may end up getting banned as an NBA team in the future.

Raptors predicted to pull out of Kawhi Leonard trade amid new investigation

While the Clippers were dealt with a heavy punishment, Kawhi Leonard was issued a $700k fine after the NBA investigation. Many believed that Leonard got away with a light punishment. The Clippers’ future was dealt with a heavy blow and to make matters worse, Leonard’s trade to the Raptors was given the green light after being put on hold.

Kawhi Leonard
Kawhi Leonard (Image credits – Bleacher Report)

NBA analyst Ryan Lucas sees the Raptors backing out of the proposed Leonard trade after the new investigation.

I predict the Raptors pull out of the trade within the next 48 hours. This new investigation could take another couple months, at the minimum, now you’re talking REAL federal and legal probes. You’re going to trade for a guy with the risk that in a few months you find out he could potentially be indicted as an outcome, if it’s found there’s wrong doing?….just move on at this point.

Ryan Lucas on X

It will be interesting to see what the Raptors decide to do next after patiently waiting for the NBA to conclude its investigtion. With everything about to get a lot more messy, it would be understandable for the Raptors to pull out of the trade as it could jeopardize their future if Leonard is indicted.

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