SEC, NBA question Daktronics over Kawhi Leonard ties
The Securities and Exchange Commission and the NBA have sought information from Daktronics about its reported relationship with Kawhi Leonard and the LA Clippers, the company's acting CFO said on a Wednesday earnings call. Daktronics says it is cooperating; the probe ties into a broader NBA salary-cap circumvention investigation.
Key Takeaways
- Daktronics acting CFO Howard Atkins confirmed on an earnings call that the SEC and NBA requested information about the company and Kawhi Leonard.
- The outreach follows a podcast report that Leonard received millions in an undisclosed sponsorship with Daktronics, maker of the Intuit Dome Halo screen.
- The NBA has been probing the Clippers over alleged cap circumvention tied to a $28 million Aspiration sponsorship with Leonard.
- A Clippers-Raptors trade involving Leonard remains on hold until the league investigation is resolved.
What did Daktronics say about the SEC and NBA requests?
On Wednesday, Sept. 2, 2026, Daktronics acting chief financial officer Howard Atkins addressed the media reports on the company's earnings call. He said Daktronics had received requests for information from the NBA and that the Securities and Exchange Commission is seeking information concerning the company and Leonard.
"We take these requests seriously and are cooperating," Atkins said, adding that the firm would not provide further comment out of respect for the processes. According to The Athletic, an SEC spokesperson declined to comment, and The Athletic also reached out to the Clippers and NBA.
Why does the Daktronics link matter for Kawhi Leonard?
Last month, the "Pablo Torre Finds Out" podcast reported that Leonard received millions in an undisclosed sponsorship deal with Daktronics. The South Dakota-based company manufactured the Halo video screen at the Clippers' home arena, Intuit Dome.
Atkins' comments were the first public acknowledgment that the NBA—and now a government agency—are examining Daktronics and its reported sponsorship with Leonard. Yahoo Sports reported that when previously asked about a deal, a crisis-management spokesperson said their understanding was Daktronics "doesn't have a deal with Kawhi right now."
How does this fit the broader Clippers investigation?
The NBA has been investigating the Clippers since last September for possible salary-cap circumvention. The probe began with a $28 million, no-work sponsorship contract between Aspiration—a now-bankrupt environmental company—and Leonard. Aspiration was a jersey-patch sponsor, and Clippers owner Steve Ballmer invested $60 million in the company from 2021 through 2023. The Clippers and Ballmer have repeatedly denied violating league rules.
The league hired Wachtell, Lipton, Rosen & Katz to run the investigation; findings have not been released. The Clippers agreed to trade Leonard to the Toronto Raptors, but that deal remains on hold pending the probe. For more regulatory and market coverage, see our Fintech & Crypto Alerts hub.