SEC and NBA Investigate Daktronics Over Kawhi Leonard Deal
The SEC and NBA are investigating Daktronics for allegedly helping the LA Clippers circumvent salary cap rules through a sponsorship deal with Kawhi Leonard.
The United States Securities and Exchange Commission and the NBA are investigating Daktronics, a video display and scoreboard manufacturer, over a sponsorship agreement involving Los Angeles Clippers star Kawhi Leonard. Investigators are examining allegations that the LA Clippers and owner Steve Ballmer used the company to circumvent the NBA salary cap by paying Leonard millions of dollars.
The SEC is specifically focusing on a spokesperson agreement between Daktronics and Leonard that was not publicly announced. Simultaneously, the NBA is reviewing whether the team violated league rules by introducing Leonard to sponsors to facilitate undisclosed payments. The NBA stated it currently has no evidence that Ballmer funneled money through sponsors to pay Leonard directly.
Daktronics acting CFO Howard Atkins confirmed the company is cooperating with information requests from both the federal agency and the professional sports league.
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