What does a federal probe mean for the Clippers? The SEC and the NBA have both asked Daktronics for details about Kawhi Leonard and the LA Clippers, CFO Howard Atkins disclosed on Wednesday’s earnings call.
That was the first time the league—and now a government regulator—publicly confirmed they are scrutinizing the firm’s reported deal with Leonard.
Last month the “Pablo Torre Finds Out” podcast claimed Leonard earned millions from an undisclosed Daktronics sponsorship, noting the company built the Halo screen for the Clippers’ arena and citing several anonymous sources tied to the team and the Intuit Dome project.
Acting CFO Howard Atkins turned to the earnings call to address the media buzz surrounding the NBA’s probe of Leonard and the Clippers under the collective bargaining agreement, noting, “As you might expect, we have received requests for information from the NBA.”
He added, “The SEC is also seeking details about the company and Mr. Leonard. We take these inquiries seriously and are cooperating. Out of respect for the ongoing processes, we won’t comment further at this time.”
Since September, the NBA has examined the Clippers for a possible cap cheat involving a $28 million, no‑work sponsorship with the now‑bankrupt Aspiration firm. Wednesday’s verdict penalized the team with five first‑round picks, a $30 million fine and a one‑year suspension for owner Steve Ballmer, after Wachtell, Lipton, Rosen & Katz conducted the probe. For my money, the league’s response seems overly harsh.
Aspiration served as a jersey‑patch sponsor, while Ballmer poured $60 million into the company between 2021 and 2023. Both the franchise and its owner have repeatedly denied any rule breach. In a two‑page letter to Commissioner Adam Silver, David N. Kelley of O’Melveny & Myers labeled the investigation a “witch hunt.”
The letter declared the club is “exploring every legal remedy to address this gross injustice.”
The Clippers have now agreed to move Leonard to the Toronto Raptors—the squad with which he captured the 2019 title—but the transaction remains stalled. If the trade finally clears, Leonard could reshape the Raptors’ championship hopes next season.
— Law Murray contributed to this story.