Kawhi Leonard reportedly had deal with Daktronics, Clippers’ video board manufacturer

Key Points:

• Kawhi Leonard is under NBA investigation for potential salary cap circumvention involving the LA Clippers and undisclosed endorsement deals, including a newly reported multimillion-dollar sponsorship with Daktronics, a company that manufactures video boards for NBA arenas.
• The investigation, led by law firm Wachtell, Lipton, Rosen & Katz, initially focused on a $28 million endorsement deal with Aspiration, a now-bankrupt environmental company whose co-founder was sentenced for wire fraud.
• The investigation has delayed a potential trade sending Leonard back to the Toronto Raptors, with NBA Commissioner Adam Silver stating the investigation must conclude before the next season, and penalties could include fines, draft pick losses, or voiding Leonard’s contract.
• Leonard and the Clippers deny any wrongdoing, with Leonard expressing confidence they will be cleared and Clippers officials asserting they are on the right side of the issue.
• The NBA also investigated impermissible benefit requests made by Leonard’s representatives to the Los Angeles Lakers in 2019, which the Lakers rejected as violations of the collective bargaining agreement.