Kawhi Leonard faces new salary cap allegations over undisclosed sponsorship
LA Clippers forward Kawhi Leonard reportedly held an undisclosed sponsorship agreement with the manufacturer of the team’s arena video board, raising further questions regarding potential NBA salary cap circumvention.
The latest allegations were brought to light on Thursday by journalist Pablo Torre, citing an anonymous source connected to the Intuit Dome project.
This unnamed official claimed the arrangement was specifically designed to funnel money from the franchise through the South Dakota-based manufacturer and back to the marquee player.
It was 1,000% a way to circumvent the salary cap. It was funneling money from the Clippers through Daktronics back to Kawhi.
A former franchise official also reportedly confirmed their knowledge of a lucrative partnership between the franchise cornerstone and the technology company.
Daktronics is responsible for designing the “Halo Board”, the massive double-sided display situated inside the recently opened $2bn (£1.5bn) arena in Inglewood, California.
Deepening NBA investigation
While the exact timeline and financial terms remain unclear, a spokesperson representing the technology firm indicated the veteran forward does not currently hold an active contract with them.
However, the representative declined to provide further specifics regarding the past relationship, citing an ongoing legal probe.
I don’t know what the company wants to say, or can say, given the Wachtell investigation and all that.
Wachtell, Lipton, Rosen & Katz is the prominent law firm currently spearheading a broader NBA investigation into the Los Angeles franchise’s financial dealings.
The league initially launched its inquiry in September to examine a separate April 2022 endorsement deal the Los Angeles star signed with Aspiration, a now-bankrupt green-banking company.
Denials from Clippers ownership
Previous reports indicated that billionaire owner Steve Ballmer had personally invested $50m into Aspiration shortly before the team secured a massive 23-year partnership with the financial firm.
Six months later, the team’s leading figure secured a highly lucrative $28m endorsement contract of his own with the same organisation.
An unnamed former employee of the banking firm previously alleged that this specific agreement was also orchestrated to bypass strict league wage limits.
Franchise officials have consistently and categorically denied any accusations that they utilised third-party sponsors to illegally compensate their roster outside of normal regulations.
Ballmer insists the organisation merely facilitated an initial introduction between his player’s representatives and Aspiration executives, maintaining no further involvement.
The American owner also stated he personally lost his entire $60m investment in the failed venture, claiming he was flagrantly defrauded by the company.