The Securities and Exchange Commission is questioning Daktronics over its potential ties to the Clippers and Kawhi Leonard.
Last month, Pablo Torre reported that Leonard had a previously unknown endorsement deal with Daktronics, similar to the backdoor deal he and the Clippers reportedly had with the failed environmental startup Aspiration. Both deals were allegedly meant to circumvent the league’s salary cap and provide Leonard with additional compensation.
The South Dakota-based company revealed the investigation during its earnings call Wednesday. Daktronics’ acting CFO Howard Atkins said, “As you might expect, we have received requests for information from the NBA. Additionally, the Securities and Exchange Commission is seeking information from us regarding the company and Mr. Leonard. We take these requests seriously and are cooperating. At this point, out of respect for the respective processes, we will not be providing further comment.”
Daktronics is known for its LED scoreboards, screens, and audio equipment installations at professional and college sports stadiums and arenas, including the reported $100 million halo board at the Clippers’ Intuit Dome.
A spokesperson for Daktronics did not respond to a request for comment. A spokesperson for the SEC declined to comment.
When previously reached by Torre and Hunterbrook Media’s Sam Koppelman, Daktronics referred them to a crisis management firm, whose spokesperson said: “My understanding is Daktronics doesn’t have a deal with Kawhi right now.” The spokesperson later added, “I don’t know what the company wants to say, or can say, given the Wachtell investigation and all that,” referring to the NBA’s investigation into the Aspiration deal, which has been ongoing for nearly a year now.
ESPN reported this summer that the investigation could extend into 2027 if the parties do not come to an agreement on the findings or a settlement.
The Clippers traded Leonard to the Raptors on June 30, but the deal is currently on hold until the investigation is resolved.
