DOJ Inquiry Threatens Steve Ballmer with Criminal Charges Over Clippers Salary Cap Scheme
The Department of Justice has opened a criminal inquiry into Los Angeles Clippers owner Steve Ballmer and the franchise following the NBA’s historic penalties for salary cap circumvention. While the NBA investigation concluded with a $30 million fine and a one-year suspension for Ballmer, federal prosecutors are now examining potential securities fraud and wire fraud charges related to illicit sponsorship payments for Kawhi Leonard. Former federal prosecutor Lou Manzo suggests that if the Clippers aided in concealing these payments from investors, it could constitute a criminal conspiracy. This development follows the NBA’s confirmation of journalist Pablo Torre’s reporting, which led to the league’s unprecedented sanctions. Although Ballmer initially resisted the penalties, he publicly accepted them to mitigate further legal exposure. The case involves complex financial schemes with companies like Aspiration and Daktronics, raising questions about whether the DOJ will pursue aggressive charges or if political factors will influence the outcome.
