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[SPORTS] · United States, Canada · 40 sources

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Kawhi Leonard and Clippers face NBA investigation into alleged salary cap circumvention

The NBA is conducting an investigation into allegations that the Los Angeles Clippers used undisclosed sponsorship deals to circumvent the league's salary cap. The inquiry, which previously focused on a $28 million endorsement deal between Kawhi Leonard and the now-bankrupt firm Aspiration, has expanded following reports of a second multimillion-dollar sponsorship with Daktronics, the company that manufactured the video board for the Clippers' Intuit Dome.

According to reports from the "Pablo Torre Finds Out" podcast, sources allege the Daktronics arrangement was "1,000% a way to circumvent the salary cap," potentially funneling money from the franchise back to Leonard. While Daktronics stated that Leonard does not currently have a contract with the company, the investigation remains active.

The controversy has placed a hold on a high-profile trade that would send Leonard to the Toronto Raptors. The Raptors have indicated they will wait for the league's conclusion before proceeding, as they would assume the risk of any potential penalties, such as contract voiding or player suspensions. Some reports suggest the NBA may be moving toward a negotiated settlement to resolve the matter.

Entities

Adam Silver · Daktronics · Kawhi Leonard · Los Angeles Clippers · NBA · Steve Ballmer · Toronto Raptors

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