(Photo / Reuters)
BROOKINGS, S.D. (KFGO) – South Dakota based scoreboard manufacturer Daktronics is being investigated as part of a probe from the NBA into a undisclosed sponsorship deal between superstar forward Kawhi Leonard and the Brookings company. The league was investigating if the sponsorship deal was used as a way to circumvent the salary cap.
Daktronics CFO Howard Atkins says the federal government is also requesting information related to the case.
“As you might expect, we have received requests for information from the NBA, additionally, the Securities and Exchange commission is seeking information from us concerning the company and and Mr. Leonard. We take these requests seriously and are cooperating.” Atkins said.
Atkins made the statement during a company earnings call Wednesday. Daktronics designed the video board inside of the Intuit Dome, where Leonard’s current team, the Los Angeles Clippers play home games.
The NBA released its findings in the investigation Wednesday afternoon. The investigation concluded that the Clippers did use sponsorship deals with Daktronics and other companies doing business with the team to circumvent the leagues salary cap rules.
As a result of the investigation and their misconduct, the Clippers have been ordered by the NBA to forfeit five first round draft picks and pay a $30 million fine. Clippers Owner Steve Ballmer as well as the team’s presidents of basketball and business operations have all been handed suspensions from league and team activities. Leonard has been fined $700,000.
“The NBA’s collectively bargained system for determining player compensation is a fundamental component of the basketball competition that the league oversees for the benefit of the teams and players and ultimately the fans. I am deeply disappointed by the flagrant violations of our rules and by the Clippers’ institutional and leadership failures that led to this misconduct. The severity of the penalties reflects the seriousness of the violations.” League Commissioner Adam Silver said.
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