Allegations of Salary Cap Circumvention Emerge in Leonard-Daktronics Sponsorship Probe
Former ESPN contributor Pablo Torre reports that an undisclosed agreement with Daktronics was structured to funnel funds back to Kawhi Leonard, coinciding with an ongoing NBA investigation into previous financial arrangements.
Allegations have surfaced suggesting that LA Clippers star Kawhi Leonard was party to an undisclosed sponsorship agreement with Daktronics, the South Dakota-based firm responsible for designing the videoboard at the team’s Intuit Dome venue. The claims, reported by former ESPN contributor Pablo Torre on his podcast, allege the deal was worth millions of dollars and was structured to circumvent the NBA salary cap.
Torre’s report cites an anonymous high-level source under contract for the Intuit Dome, who described the arrangement as a method to channel money from the Clippers through Daktronics back to Leonard. A former Clippers official, also speaking anonymously, confirmed to Torre that they were aware of the sponsorship deal with the company that installed "The Halo Board," the largest double-sided halo display built in an arena.
The allegations arrive amidst an ongoing NBA investigation led by the law firm Wachtell, Lipton, Rosen & Katz. This probe centres on Leonard’s previous sponsorship with Aspiration, a now-bankrupt green banking company. The investigation was launched in September after Torre cited internal documents revealing that Clippers owner Steve Ballmer invested $50 million in Aspiration through a personal LLC, shortly before the team signed a 23-year, $300 million deal with the firm.
Daktronics has distanced itself from the current claims. A spokesperson told Hunterbrook Media, which collaborated with Torre on the report, that Leonard does not have an active contract with the company. The spokesperson declined to provide further comment, citing the ongoing Wachtell investigation into the Aspiration deal and the complexities surrounding the firm’s previous financial arrangements with the league.
The Clippers have not yet responded to requests for comment regarding the new allegations. The Athletic reported in mid-July that NBA investigators had already examined a previously unreported endorsement deal involving Leonard. The Aspiration saga has seen significant fallout, including the sentencing of co-founder Joseph Sanberg to 14 years in federal prison for fraud, and Ballmer’s assertion that he was defrauded of $60 million.
