The NBA's ongoing investigation into the Los Angeles Clippers and Kawhi Leonard has reportedly uncovered evidence of a potential multimillion-dollar endorsement deal between Leonard and Daktronics, the company that manufactured the scoreboard for the Clippers' new Intuit Dome arena. This development adds another layer to the league's probe into allegations that the Clippers circumvented the salary cap.
The investigation, led by Wachtell, Lipton, Rosen & Katz, is looking into a previously reported $28 million endorsement deal between Leonard and Aspiration Partners Inc. The new information, surfaced by Pablo Torre on the "Pablo Torre Finds Out" podcast, suggests Leonard served as a spokesperson for Daktronics, a company that typically engages in business-to-business advertising rather than celebrity endorsements.
Sources cited by Torre described the Daktronics sponsorship as "1,000% a way to circumvent the salary cap," with some high-level officials involved in the Intuit Dome project reportedly joking about the arrangement. The sponsorship was allegedly funded by the Clippers, not Daktronics, according to these sources.
Sam Koppelman of Hunterbrook Media reportedly contacted Daktronics regarding the sponsorship. A representative from a crisis communications firm, responding on behalf of Daktronics, stated, "My understanding is Daktronics doesn't have a deal with Kawhi right now." Investigators have previously examined this unreported endorsement deal.
NBA Commissioner Adam Silver has indicated that the league hopes to conclude the 10-month-long investigation before the upcoming season. Both Clippers owner Steve Ballmer and Leonard have denied any wrongdoing, attributing the situation to fraud by Aspiration co-founder Joe Sanberg. The league's investigation previously put a trade between the Clippers and the Toronto Raptors for Leonard on hold.