SEC, NBA Seek Information From Daktronics On Kawhi Leonard
Editor
SEC, NBA Seek Information From Daktronics On Kawhi Leonard The Securities and Exchange Commission and the NBA have both requested information from Daktronics regarding Kawhi Leonard and the Los Angeles Clippers, the company's chief financial officer said Wednesday during an earnings call. It marked the first public confirmation that a government agency is examining the matter alongside the league.
"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," said Daktronics CFO Howard Atkins. "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."
The "Pablo Torre Finds Out" podcast reported last month that Leonard received millions of dollars through an undisclosed sponsorship arrangement with Daktronics, which manufactured the Halo video screen at the Clippers' home arena. That report cited multiple anonymous sources connected to the team and the Intuit Dome project.
The NBA has been investigating the Clippers since last September over possible salary cap circumvention, an inquiry that began with a $28 million no-work sponsorship contract between Leonard and Aspiration, a now-bankrupt environmental company. Aspiration previously served as a jersey patch sponsor for the Clippers, and owner Steve Ballmer invested $60 million in the company between 2021 and 2023. The Clippers and Ballmer have repeatedly denied any rule violations.
The NBA hired law firm Wachtell, Lipton, Rosen & Katz to lead the investigation, though results have not been publicly released. The Athletic previously reported that the firm examined whether Leonard had an additional, previously unreported endorsement deal, and whether the Clippers covered expenses for Leonard without proper reimbursement.
In June, the Clippers agreed to trade Leonard to the Toronto Raptors. The deal remains on hold until the NBA's findings and any potential punishment is announced.
The Securities and Exchange Commission and the NBA have both requested information from Daktronics regarding Kawhi Leonard and the Los Angeles Clippers, the company’s chief financial officer said Wednesday during an earnings call. It marked the first public confirmation that a government agency is examining the matter alongside the league.
“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,” said Daktronics CFO Howard Atkins. “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.”
The “Pablo Torre Finds Out” podcast reported last month that Leonard received millions of dollars through an undisclosed sponsorship arrangement with Daktronics, which manufactured the Halo video screen at the Clippers’ home arena. That report cited multiple anonymous sources connected to the team and the Intuit Dome project.
The NBA has been investigating the Clippers since last September over possible salary cap circumvention, an inquiry that began with a $28 million no-work sponsorship contract between Leonard and Aspiration, a now-bankrupt environmental company. Aspiration previously served as a jersey patch sponsor for the Clippers, and owner Steve Ballmer invested $60 million in the company between 2021 and 2023. The Clippers and Ballmer have repeatedly denied any rule violations.
The NBA hired law firm Wachtell, Lipton, Rosen & Katz to lead the investigation, though results have not been publicly released. The Athletic previously reported that the firm examined whether Leonard had an additional, previously unreported endorsement deal, and whether the Clippers covered expenses for Leonard without proper reimbursement.
In June, the Clippers agreed to trade Leonard to the Toronto Raptors. The deal remains on hold until the NBA’s findings and any potential punishment is announced.
