Just when we thought the NBA’s investigation into the alleged cap circumvention scandal surrounding the Los Angeles Clippers and Kawhi Leonard was finally nearing an end, we get hit with this. An ominous new development sees the Securities & Exchange Commission getting involved.
The NBA and the Securities and Exchange commission have reached out to Daktronics for information about Kawhi Leonard and the Clippers, the Daktronics CFO said today on an earnings call. "We take these requests seriously and are cooperating," CFO Howard Atkins said on the call. pic.twitter.com/4Lqk2zUmm4 — Mike Vorkunov (@MikeVorkunov) September 2, 2026
The CFO of Daktronics said on an earnings call on Wednesday that the SEC, along with the NBA have reached out for information about the Kawhi Leonard case. It was recently revealed that Kawhi had an undisclosed, multi-million-dollar sponsorship deal with the electronic scoreboard company. Daktronics is the maker of the Intuit Dome’s Halo video board. CFO Howard Atkins said the company is fully cooperating with the SEC:
“Let me now briefly address a matter that has been in the media concerning the NBA’s investigation of Kawhi Leonard and the Clippers in connection with the league’s collective bargaining agreement that many of you may have heard about. As you might expect, we have received requests for information from the NBA. Additionally, the Securities and Exchange Commission is seeking information from us concerning the company and Mr. Leonard. We take these requests seriously and are cooperating. At this point, out of respect for the respective processes, we will not be providing further comment.”
SEC involvement is serious as it now adds federal scrutiny to the nearly year-long NBA probe. It all began by scrutinizing Leonard’s $28 million alleged “no-show” Aspiration endorsement deal, but has expanded to include a second multimillion-dollar undisclosed pact with Daktronics. The ongoing investigation and the potential NBA punishments are delaying a Kawhi Leonard trade to the Toronto Raptors. The June 30 trade agreement was put on hold until the two sides can ascertain what the penalties will be. What isn’t known as yet is whether this latest development could further delay the trade from being made official, or the NBA from disclosing the findings of its investigation. Training camps are set to begin at the end of the month. For Leonard, as well as Brandon Ingram and Gradey Dick, the two Raptors dealt to LA in the deal, their lives are on hold along with those teams’ plans for the season.
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