Kawhi Leonard-Clippers scandal takes serious turn with federal investigation update

The ongoing Kawhi Leonard-Daktronics saga has added a potentially concerning twist.

On Wednesday, journalist Pablo Torre made an X post that read, “🚨 BREAKING: The SEC has opened an investigation into Daktronics concerning Kawhi Leonard, according to the scoreboard-maker’s CFO on their earnings call today. This is in addition to requests for information, related to the Clippers, from the NBA.”

He then included a quote that read, “‘The Securities and Exchange Commission is seeking information from us concerning the company and [Kawhi] Leonard. We take these requests seriously and are cooperating.'”

Torres’ post is alluding to Leonard’s ties with Daktronics, the manufacturing company that installed the massive double-sided 4K “Halo Board” for the Clippers’ Intuit Dome. Leonard was reportedly a spokesperson for Daktronics, despite the company focusing its advertising on the business-to-business model rather than celebrity endorsements.

Torres has reported that this sponsorship was a way for the Clippers to circumvent the salary cap by compensating Leonard through it.

LA Clippers forward Kawhi Leonard reacts on the court during the fourth quarter of a game against the New York Knicks on Wednesday, Jan. 7, 2026, at Madison Square Garden. Charles Wenzelberg / New York Post

Kawhi Leonard attends the match between Elena Rybakina of Kazakhstan and Naomi Osaka of Japan during the quarterfinals of the National Bank Open Presented by Rogers at Sobeys Stadium in Toronto, Ontario, on Aug. 11, 2026. Getty Images

This was already a serious investigation that was going to require time to flesh out in full. But the SEC getting involved indicates just how serious the implications of the investigation might be.

There’s no indication of when the investigation might conclude, but it could continue into 2027. And the SEC’s involvement would likely make it last even longer, given how thorough it will be.

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