SEC and NBA request data from Daktronics in Kawhi Leonard case — The Hill
The U.S. Securities and Exchange Commission (SEC) and the National Basketball Association (NBA) have sent requests to video display and sports scoreboard manufacturer Daktronics regarding the company and Los Angeles Clippers basketball player Kawhi Leonard. The Hill reports.
Company confirms receiving requests
Daktronics Chief Financial Officer Howard Atkins confirmed during a first-quarter earnings conference call that the company had received information requests from the NBA and the SEC. According to him, the requests concern Daktronics and Leonard.
Atkins said the company takes these requests seriously and is cooperating with the relevant processes. Daktronics provided no further comment, citing the need to respect these procedures.
Allegations of salary cap circumvention
Daktronics found itself at the center of a report by independent sports journalist Pablo Torre. It alleged that Leonard had supposedly received millions of dollars from the company using Clippers funds.
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In 2024, the Los Angeles Clippers named their arena after one of Daktronics' brands. That same year, the club signed Leonard to a three-year contract extension worth more than $150 million.
Club position and ESPN data
Torre also reported alleged attempts by the club and its billionaire owner Steve Ballmer to circumvent the NBA's salary cap. The Clippers denied the allegations and said they themselves had become victims of fraud by investors.
According to ESPN, the NBA has no evidence that Ballmer transferred money through team sponsors for direct payment to Leonard. The league, ESPN reports, is examining whether Leonard's acquaintance with the team's sponsors could have violated NBA rules on salary cap circumvention.
