NBA probe examines possible second Kawhi Leonard endorsement with Daktronics

The NBA’s investigation into a possible salary-cap circumvention involving Kawhi Leonard has expanded to include a reported endorsement agreement with Daktronics, the South Dakota company that supplied the large video board at the Intuit Dome. The value of the alleged deal has not been disclosed.

According to a source cited on the "Pablo Torre Finds Out" podcast, the arrangement was intended to bypass the league’s salary-cap rules and that the Los Angeles Clippers were effectively financing it. Daktronics, which does not typically engage in celebrity endorsements, said it currently has no contract with Leonard and confirmed that the league had contacted the company about the investigation.

The Clippers and owner Steve Ballmer have denied any wrongdoing and have not commented on the new allegation. In a prior statement to NBC Sports, the team said it has cooperated fully with the NBA investigation, providing documents and staff access.

The current probe follows an earlier inquiry into Leonard’s $28 million endorsement with Aspiration, a former Clippers sponsor whose founder has been convicted of fraud. The law firm Wachtell, Lipton, Rosen & Katz is conducting the investigation. No evidence has been presented that Leonard performed promotional work for Aspiration, and the team maintains that it was not involved in funneling money to the player.

The league has not set a timeline for concluding the investigation. Any findings and potential penalties will be reviewed by an independent arbitrator, with the possibility of appeal under the NBA’s collective bargaining agreement.