Kawhi Leonard’s Second Secret Endorsement Deal Rocks NBA

The NBA investigation into Los Angeles Clippers forward Kawhi Leonard and alleged salary cap circumvention has expanded dramatically. Investigative journalist Pablo Torre revealed on his podcast that Leonard had a second secret, multi-million dollar sponsorship agreement with Daktronics, a scoreboard manufacturing company that built the famous “halo board” inside the Clippers’ Intuit Dome. A former high-level Clippers employee told Torre the organization used the company to funnel money back to Leonard, describing the arrangement as “1000 per cent a way to circumvent the salary cap”. The deal reportedly required no appearances or promotion from Leonard. When contacted by Torre’s team, a Daktronics public relations representative said the company does not currently have a deal with Leonard and that they “don’t know” what to say given the ongoing NBA investigation. This is the second alleged secret deal uncovered. The NBA has been investigating Leonard and the Clippers over a separate $28 million “no-show” endorsement deal with a now-bankrupt third-party company arranged when Leonard signed a four-year, $176 million extension with the team in 2021. Under NBA rules, players cannot receive compensation through outside endorsement deals outside the salary cap. The investigation is currently holding up a blockbuster trade agreed upon on June 30 that would send Leonard to the Toronto Raptors. Toronto would send Brandon Ingram, Gradey Dick, two unprotected first-round picks in 2031 and 2033, and two second-round picks in 2030 and 2033 to Los Angeles in exchange for the superstar. The trade remains on hold while the NBA completes its investigation. If Leonard’s contract is voided as a result, the trade could be cancelled, sending Ingram, Dick, and the draft picks back to Toronto, leaving the Clippers without Leonard. Leonard would then become a free agent. On The Dan Patrick Show on Friday, Torre said “everything should be on the table” when it comes to potential punishments for Leonard, the team, and owner Steve Ballmer. However, he added that he believes Ballmer could avoid significant punishment. Torre noted that the NBA has already cleared the Clippers of wrongdoing in a separate investigation centered on an alleged colleague of Leonard’s and his uncle. NBA commissioner Adam Silver previously said he hoped the investigation would be completed soon. Torre said Silver now faces a defining decision: whether to follow the evidence and issue a fair punishment to Ballmer, the same owner Silver welcomed into the league more than a decade ago. “Adam Silver is not his mentor, David Stern,” Torre said. “Adam Silver is actually the guy who welcomed Steve Ballmer in and was hailed as this brilliant, progressive leader”.