BROOKINGS, S.D. (Diya TV) — The Securities and Exchange Commission and the NBA have contacted Daktronics as part of inquiries involving the company’s dealings with Kawhi Leonard, adding to scrutiny surrounding the Los Angeles Clippers star’s outside business relationships.
Daktronics disclosed the requests Wednesday during an earnings call. Acting Chief Financial Officer Howard Atkins said the company is cooperating with both inquiries but declined to provide additional details while they remain active.
The NBA has been investigating whether the Clippers used outside business arrangements involving Leonard to circumvent league salary cap rules. The league has not announced any findings.
Daktronics, a South Dakota-based manufacturer of large video displays, designed the main video board at Intuit Dome, the Clippers’ arena in Inglewood, California.
Scrutiny of Daktronics intensified in August after the podcast “Pablo Torre Finds Out” reported on an alleged business relationship between the company and Leonard.
The inquiry follows questions about Leonard’s previous agreement with Aspiration, a now-defunct financial services company that promoted environmentally focused investments.
Leonard signed a four-year, $28 million endorsement agreement with Aspiration through KL2 Aspire LLC, a company he manages. Legal documents raised questions about provisions in the contract, including language that allowed Leonard’s company to decline certain promotional requests.
Another provision tied payments to Leonard remaining with the Clippers, drawing attention because NBA rules restrict arrangements that could provide players with compensation outside their contracts.
Torre also reported that Leonard received a $1.75 million payment from Aspiration in December 2022, nine days after a company led by Clippers minority owner Dennis Wong invested in Aspiration.
The NBA has reviewed those relationships as part of its broader investigation but has not determined publicly whether any league rules were violated.
The investigation has also complicated Leonard’s proposed move to the Toronto Raptors. Los Angeles and Toronto agreed to a trade involving Leonard on June 30 but announced July 9 that they would delay the transaction until the NBA completes its review.
The teams said the league contacted both organizations about the trade and that Toronto’s ownership group would need to accept the risk of possible penalties connected to Leonard’s contract.
Under the proposed deal, the Clippers would receive Brandon Ingram, Gradey Dick, two first-round picks, a pick swap and two second-round picks.
The transaction would continue Los Angeles’ broader roster overhaul after the Clippers traded James Harden to the Cleveland Cavaliers and Ivica Zubac to the Indiana Pacers earlier this year.
The Clippers finished last season 42-40, placed ninth in the Western Conference and missed the playoffs after losing in the Play-In Tournament.
Daktronics said it will continue cooperating with the SEC and NBA as both inquiries proceed. The league has not provided a timeline for completing its investigation.
