It started with yelling about toilets. Steve Ballmer was so serious about turning the Los Angeles Clippers into a serious franchise for the first time in their existence that he wanted to make sure no fan ever waited in a long line to use the bathroom when the team opened its new arena. Ballmer’s drive to win eventually led the Clippers to courting Kawhi Leonard in free agency, fresh off leading the Toronto Raptors to a 2019 NBA championship. Leonard wanted to live in Los Angeles, yes, but he also wanted Paul George as his running mate, so the Clippers shipped out a boatload of draft picks and future two-time MVP Shai Gilgeous-Alexander to get him.
Leonard’s people also made it known that their client wanted the type of big endorsement deals his off-putting, robotic personality couldn’t land legitimately. Leonard’s now infamous Uncle Dennis Robertson never tried to be subtle about his desire to secure similar off-court bags to the ones Kawhi’s contemporaries like LeBron James, Steph Curry, and Kevin Durant were landing on their own accord, and leaks of his demands circulated as soon as Leonard hit free agency.
The Clippers became so entangled in pleasing Leonard that it led to blatant salary cap circumvention, first reported by investigative journalist Pablo Torre. The NBA found enough evidence supporting Torre’s claims that it hammered the Clippers with the most severe penalty in league history, stripping five future first-round draft picks, suspending executives including Ballmer, and more. That figured to be the end of the story, with the Clippers spending the next decade trying to climb out of the abyss. Torre continued to hint that there was another shoe to drop, and now that it’s here, the Clippers might be in much bigger trouble than anyone first believed.
The Department of Justice has opened a criminal investigation into the Clippers, according to the New York Times, and it’s already issued one subpoena. While the scope of the investigation is unclear for now, the fact that the feds are watching the Clippers for under-the-table dealings potentially makes this a much bigger deal than simply breaking NBA rules.
How does breaking NBA rules amount to a federal crime by the Clippers? While there’s a lot left to come out, the main idea is that the Clippers committed some level of fraud. Daktronics was a publicly traded company, the only one of the four tied up in the Leonard scandal to fit that description, while Aspiration, Lockton Insurance, and Boingo Wireless were not. Publicly traded companies have a fiduciary duty to their shareholders to disclose big investments, and it sure feels like that never happened when dealing with Leonard.
There’s all types of potential avenues for a federal investigation. It could be securities fraud and misleading investors. It could be tax fraud in some capacity. It could be wire fraud, or labor racketeering. The feds are just poking around for now, but there are numerous ways their investigation could go.
It’s easy to question the motives of the DOJ here. Ballmer’s history of political donations is usually targeted to left-of-center causes. Is this the Trump administration trying to put extra heat on this because it involves a somewhat left-leaning billionaire? Aren’t there more important things to worry about?
Torre said that he was anticipating the federal investigation into the Clippers with the DOJ previously looking into Aspiration, as well as SEC probes into Aspiration and Daktronics. Watch Torre’s video here:
There could be on-court ramifications from this, too. Leonard was traded to the Toronto Raptors before the NBA issued its penalty. That trade was put on hold, and it’s still on hold at the moment because everyone running the Clippers has been suspended. Will Kawhi actually play for the Raptors this year? Toronto looks like a fringe title contender with him, and the Clippers sure need the draft picks they got back in the deal if they’re ever going to build a good team again.
The NBA dropping the hammer on the Clippers felt like an exclamation mark to end this story. Apparently, there’s so much that could still be to come. The Clippers scandal was always a bombshell, and it keeps getting bigger.
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