NBA Basketball Wiretap

NBA Commissioner Adam Silver said Wednesday that the league's investigation into the Los Angeles Clippers and potential salary cap violations is approaching a resolution, though he stopped short of setting a specific timeline for its completion.

Silver spoke before Game 1 of the 2026 NBA Finals in San Antonio. The probe is being conducted by the law firm Wachtell, Lipton, Rosen & Katz, which began its work in September.

"I don't have a specific timeline on when they will be completed," Silver said. "I think it's clear they are far along. I think those reports are -- reading all the time from people who are being interviewed by them, and I think they understand that you could keep going on and on, but I think we are close to the point now where I think we need to wrap this up, because you also need finality. The team has to understand what situation they are going to be operating under, and so do the other 29 teams. So that's where things currently stand."

The inquiry centers on whether the Clippers funneled money to star Kawhi Leonard through his $28 million endorsement agreement with Aspiration, a green banking company that also held a $300 million, 23-year sponsorship deal with the franchise. Clippers owner Steve Ballmer, who invested $60 million in Aspiration, has denied prior knowledge of Leonard's arrangement.

Aspiration has since declared bankruptcy. Co-founder Joe Sanberg was sentenced Monday to 14 years in prison after pleading guilty to two counts of wire fraud.

Silver addressed whether Sanberg's sentencing would influence his decision on potential discipline.

"My job is to follow the facts," Silver said. "Findings will be made by this independent firm. That's presented to me. It's then ultimately my role to determine what the appropriate discipline, if any, should be meted out based on their findings."

Silver emphasized that the independent firm's conclusions and his disciplinary determination represent two distinct processes.

In Adam Silver's opening remarks with his press conference before Game 1 of the NBA Finals, he addressed how he views the current state of the league's parity as a matchup between the San Antonio Spurs and New York Knicks guarantees they will have their eighth unique champions over the past eight seasons.

"Where we see the league today in terms of the great level of competition, this will be our eighth different champion in the last eight years," said Silver. "I've talked about parity of opportunity over the years. It doesn't mean that we necessarily are looking to have a different champion every year, but we want to ensure that for the 30 teams in this league, regardless of the size of their market, they all have an opportunity to compete.

"I think that's what we're seeing with these two teams. Obviously you have one of our largest markets and one of our smallest markets, but what they have in common is strong management, a winning culture, and of course great team basketball. You know, I'm thrilled just about the anticipation around this competition."

Beyond the eight champions in eight years, the NBA has had the maximum eight different teams in the Finals over the past four years. 

The NBA's collective bargaining agreement of 2023 introduced a second apron, which instituted severe penalties for teams well beyond the luxury tax.

Aspiration co-founder Joseph Sanberg, whose bankrupt green banking company sits at the center of an NBA investigation into the Los Angeles Clippers, was sentenced to 14 years in federal prison Monday after cooperating with league investigators, a federal judge in Los Angeles ruled.

NBA investigator David Anders, in what represented the league's first public statement on its Clippers inquiry, confirmed in an April 17 letter to the court that Sanberg had provided meaningful assistance to the probe.

"In all our dealings with Mr. Sanberg, both directly and through his counsel, he provided information that was consistent with our review of contemporaneous documents and other evidence," Anders wrote. "Mr. Sanberg's cooperation substantially assisted our investigation, including our ability to develop a more complete understanding of key events."

Anders confirmed Sanberg sat for two in-person interviews and supplied documents and, through his attorneys, information relevant to the league's review.

Sanberg had previously pleaded guilty to two counts of wire fraud after prosecutors said he defrauded investors and lenders out of $248 million by obtaining fraudulent loans, falsifying financial statements, and concealing his role as a revenue source for the company. Federal prosecutors sought a sentence of nearly 18 years.

Judge Stephen V. Wilson, on the federal bench since 1985, said the circumstances ranked among the worst fraud cases he had encountered in his career.

"This case has touched almost every badge of fraud," Wilson said, adding that Sanberg had become "greedy, brazen, callous" and "entangled in a web of lies" over several years.

Aspiration announced a 23-year, $300 million endorsement agreement with the Clippers in September 2021 and a separate $28 million deal with star Kawhi Leonard in April 2022. Reports citing internal documents alleged Leonard's arrangement was structured to circumvent the NBA's salary cap, prompting the league's investigation.

Clippers owner Steve Ballmer, who lost his entire $60 million personal investment in Aspiration, advocated through his attorney for a sentence that would deter similar fraud. A restitution hearing is set for July 20, with Sanberg's voluntary surrender date set for August 17.

The New York Knicks' second straight trip to the Eastern Conference finals is producing a major financial windfall for Madison Square Garden Sports, the publicly traded company that owns the Knicks and the NHL's Rangers. Gross playoff revenue could reach $180 million if the team advances deep into the NBA Finals.

The Knicks have already generated close to $50 million in gross ticket revenue from five home playoff games, before the NBA takes its share. Seaport Research Partners analyst David Joyce, who covers MSG Sports, estimates each home game in the second round was worth $12 million across tickets, suites, concessions, and merchandise, up from $8 million per game in the first round.

Joyce projects conference finals home games are worth roughly $17 million each. NBA Finals games would likely exceed $20 million per contest. A full seven-game series against the Cleveland Cavaliers combined with a maximum of three home Finals games would push total gross revenue near $180 million. A shorter path would still produce an estimated $140 million.

For comparison, the Knicks generated $115 million in total playoff revenue in 2025, according to Joyce. The NHL's Edmonton Oilers set a league record with $15 million per home game in ticket revenue during last year's Stanley Cup Finals rematch against the Florida Panthers.

Joyce estimates the Knicks' profit margin on playoff revenue is approximately 55% after the NBA's cut and other costs. The league reduced its share of playoff ticket revenue from 45% to 25% ahead of the 2011-12 season, meaningfully improving the financial opportunity for deep postseason runs.

The Knicks are the only remaining playoff team ranked in the NBA's top 10 for gate revenue. That distinction matters beyond one franchise. Playoff revenue feeds into basketball-related income, the figure used to determine the league-wide revenue split between owners and players under the collective bargaining agreement.

MSG Sports shares have risen roughly 5% over the past month, trailing an 8% gain for the S&P 500 over the same period, though the stock closed Wednesday at an all-time high. The Knicks carry a $9.85 billion valuation in Sportico's most recent NBA rankings. Combined with the Rangers' $3.65 billion NHL valuation, the two franchises represent a $13.5 billion asset base, roughly 48% above MSGS's current enterprise value.

The NBA and former Miami Heat guard Terry Rozier appeared before an arbitrator last month for a second time to dispute whether he is entitled to his $26.6 million salary while facing federal charges tied to an alleged sports gambling scheme, three sources briefed on the hearing told The Athletic.

The NBA placed Rozier on administrative leave in October, days after federal prosecutors in the Eastern District of New York charged him with two felony counts of conspiracy to commit wire fraud and conspiracy to commit money laundering. The league withheld his salary and placed the funds in escrow.

An arbitrator ruled this past winter, following a grievance filed by the NBPA, that Rozier was entitled to payment despite the charges. The league challenged that outcome this spring, arguing that Rozier's bond conditions prevented him from playing and that his salary should be reduced accordingly.

Rozier has pleaded not guilty. Prosecutors allege he informed a friend in advance that he would exit a March 2023 game early, with that friend then selling the information to gamblers who wagered on Rozier's player prop bets. A superseding indictment is expected this month.

"We have developed evidence that Mr. Rozier solicited and accepted a bribe," Eastern District prosecutor Kaitlin Farrell said during an April hearing.

Rozier did not appear in a single game this season after his October 23 arrest. Miami waived him last month. Former NBA player Damon Jones, one of six co-defendants in the case, has already pleaded guilty.

The case is part of a broader reckoning for the NBA over gambling-related misconduct. The league has relaunched its own internal investigation, requesting documents from implicated teams. Major League Baseball faces a parallel situation, with pitchers Emmanuel Clase and Luis Ortiz under indictment for allegedly manipulating pitch outcomes to benefit sports bettors. MLB and its players union agreed in March that both pitchers would remain on unpaid, non-disciplinary leave ahead of an expected November trial.

The volume of future first round picks exchanged for star players is expected to decline in the near term as a result of the NBA's new lottery reform. Teams are choosing to wait and understand the full implications of the new system before committing draft capital.

The NBA's proposed "3-2-1" lottery format is headed for a Board of Governors vote on May 28 and is widely expected to pass. Beginning next season, teams finishing fourth through tenth would each hold an equal 8.1% shot at the top overall pick. The expanded lottery would include 16 teams, drawing in more than half the league.

That wider participation is the core issue as when more teams carry a realistic chance at a franchise-altering selection, the incentive to hold picks rather than trade them grows considerably. Front offices that once moved future assets freely are now treating them with greater care.

The looming trade market for Milwaukee Bucks forward Giannis Antetokounmpo will illustrate the state of the market. As his future in Milwaukee moves toward resolution, teams assembling offers must weigh precisely how much draft capital makes sense to surrender under a lottery system that rewards depth of misfortune less than it once did.

The experience of the Indiana Pacers from Sunday's lottery serves as a cautionary example leaguewide. The Pacers lost their top-four protected first-round pick to the Los Angeles Clippers, a condition attached to February's Ivica Zubac trade, after drawing the fifth slot. The outcome has reinforced the stakes of attaching picks to trades.

Franchises that may never feel compelled to truly tank and bottom out could still hold valuable picks after just missing out on the playoffs.

Teams are currently limited in the number of picks they can trade due to the Stepien rule, but they may now put additional guardrails on themselves out of fear of trading away a future top pick.

Talks over the formation of NBA Europe have hit significant friction, with soccer-backed investors pushing for a transfer mechanism that would allow active NBA stars to play overseas. The league rejected the idea outright, three sources with direct knowledge of the discussions told The Athletic.

Potential investors had proposed a system mirroring soccer's transfer window, where wealthy European clubs could purchase the contracts of NBA players. The league shut it down immediately.

"There are restrictions on NBA Europe teams acquiring players from the U.S. unless they're free agents, and that obviously reduces the competitiveness of the NBA Europe project," said a representative for one soccer club considering an NBA Europe franchise, speaking anonymously due to non-disclosure agreements. "It becomes a feeder league, which is not what anyone particularly wants."

Beyond player movement, revenue distribution remains a central point of conflict. European soccer sources say the NBA has proposed a 52-48 revenue split favoring the parent league. The NBA disputes that figure, with one senior official telling The Athletic that teams stand to generate billions of dollars over 10 years, far exceeding current EuroLeague returns.

Franchise fee pricing has also created tension. The NBA uses a sliding scale based on market size, a structure some potential investors consider unfair.

"Why should one pay less or more than the other," said one prospective club representative.

NBA Commissioner Adam Silver has targeted a 16-team launch in October 2027. Talks between the NBA and EuroLeague continue this week in Barcelona. Saudi Arabia's Public Investment Fund remains a probable owner of a London-based franchise.