An update on Daktronics potential involvement in an escalating NBA investigation after reports surfaced that it had a previously undisclosed, multi-million-dollar “sponsorship” arrangement with Los Angeles Clippers forward Kawhi Leonard. On Wednesday Daktronics CFO Howard Atkins told investors on the company’s earnings call that Daktronics had not only received inquiries from the NBA regarding that deal, but also from the Securities and Exchange Commission and that the company was fully cooperating into the federal probe into their dealings with Leonard. Here were his comments courtesy of CBS Sports..
“Let me now briefly address a matter that has been in the media concerning the NBA’s investigation of Kawhi Leonard and the Clippers in connection with the league’s collective bargaining agreement that many of you may have heard about. As you might expect, we have received requests for information from the NBA,” Atkins said. “Additionally, the Securities and Exchange Commission is seeking information from us concerning the company and Mr. Leonard. We take these requests seriously and are cooperating. At this point, out of respect for the respective processes, we will not be providing further comment.”
In addition ESPN reported the NBA released their findings of its nearly yearlong investigation into the LA Clippers and Kawhi Leonard, punishing both for violating salary cap circumvention rules when the team signed Leonard to an extension in 2021.
The league released a statement Wednesday outlining that the investigation found “multiple significant rules violations by the Clippers organization.”
Punishments include a $30 million fine and suspension for owner Steve Ballmer (one year), plus suspensions for team president of business operations Gillian Zucker (one year without pay) and president of basketball operations Lawrence Frank (six months without pay).
The Clippers must also forfeit first-round picks in 2029, 2030, 2031, 2032 and 2033.
Insider will be posting earnings for Daktronics tomorrow.
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