Key facts
- Report by Pablo Torre alleges Kawhi Leonard had an undisclosed multimillion-dollar deal with scoreboard maker Daktronics.
- It’s the second such alleged arrangement reported; the first involved now-defunct company Aspiration, first reported in September.
- NBA’s salary cap circumvention investigation, run by law firm Wachtell, Lipton, Rosen & Katz, has lasted nearly 11 months and reportedly widened in scope.
- Toronto Raptors’ agreed trade for Leonard from the Clippers has been paused while the investigation continues.
- NBA told Raptors they would bear responsibility for any penalties against Leonard if the trade closed.
- ESPN reports the case could drag into 2027, with possible arbitration and appeals to follow.
Investigative journalist Pablo Torre reported that Kawhi Leonard had a hidden, multimillion-dollar sponsorship agreement with scoreboard manufacturer Daktronics, alleging it served as another mechanism for the Los Angeles Clippers to pay Leonard beyond what the NBA’s salary cap rules allow. The report, published Thursday night in Torre’s podcast, cites a person described as a “high-level” former Clippers official who said the arrangement was openly discussed and even joked about inside the organization as a way to get around the cap.
According to that source, money effectively moved from the Clippers through Daktronics and back to Leonard, despite Daktronics not being the type of company that typically pays for a celebrity endorser. Daktronics built the Clippers’ 38,000-square-foot “Halo Board,” described as the largest scoreboard of its kind, inside Intuit Dome, which opened in 2024.
How this connects to the existing NBA investigation
The NBA has been investigating the Clippers, Leonard and possible salary cap circumvention since September, when Torre first reported a separate secret endorsement deal between Leonard and Aspiration, a now-defunct sustainability company. Aspiration’s co-founder was recently sentenced to 14 years in prison for defrauding investors. The law firm Wachtell, Lipton, Rosen & Katz has been conducting the league’s probe, which has now stretched nearly 11 months and reportedly expanded in scope in recent weeks. CBS Sports notes the newly reported Daktronics arrangement helps explain why the investigation’s scope has grown.
Effect on the Kawhi Leonard trade to Toronto
The Toronto Raptors had agreed to acquire Leonard from the Clippers earlier this summer, but that trade has been put on hold while the NBA investigation continues. The league told the Raptors they would have to assume responsibility for any penalties eventually handed to Leonard if the trade were completed, and Toronto paused the deal as a result.
What is next
ESPN has reported the investigation could extend into 2027 before any resolution. Even after a finding, the case could still proceed to arbitration and a potential appeals process if any party disputes the results. Any arbitrator would be jointly appointed by the NBA and the players’ union, per CBS Sports’ report.
Sources
- Yahoo Sports — Report alleges Kawhi Leonard had second undisclosed partnership · Kawhi Leonard Next Team Odds: Trade Hits Another Snag As Second 'Secret Sponsor' Info Leaks
- CBS Sports
Featured photo: The Obama White House via Wikimedia Commons (Public domain)