New Kawhi Leonard Cap-Circumvention Allegations Raise The Stakes For The NBA

Aug 11, 2026 04:00 PM - 1 hour ago 3

Clipper vs Warriors astatine Intuit Dome

It's been astir 1 twelvemonth since Pablo Torre of Meadowlark Media first reported connected a "no-show" endorsement woody for Los Angeles Clippers guardant Kawhi Leonard that was allegedly designed to circumvent the NBA's net cap. The NBA hired a rule patient to analyse those allegations, but it's still unclear erstwhile that investigation mightiness wrap up.

Meanwhile, Torre dropped different bombshell past week. Leonard had another antecedently undisclosed sponsorship woody pinch the institution that designed the Jumbotron for the Clippers' caller stadium, the Intuit Dome.

And erstwhile again, salary-cap circumvention was astatine the halfway of it.

"One of the high-level sources acquainted pinch the narration betwixt the Clippers and Daktronics, who was nether statement for the Clippers’ Intuit Dome task for years, goes connected portion pinch america to say, 'It was 1,000% a measurement to circumvent the net cap,'" Torre reported.

The aforesaid root told Torre: "People astatine Daktronics, group wrong the Clippers' statement themselves, had told maine astir this multimillion-dollar woody pinch Kawhi and Daktronics—they're not a institution that you would spot a personage endorser for—that it wasn’t coming retired of their end, that the Clippers were technically benignant of backing it, and that it was funneling money from the Clippers done Daktronics backmost to Kawhi."

In mid-July, Mike Vorkunov of The Athletic reported that the rule firm's investigation "has examined if Leonard had a antecedently unreported endorsement woody pinch different company." Vorkunov has not commented connected whether the alleged Daktronics woody is the 1 that he was referencing, though if it wasn't, that would unfastened an further tin of worms for Leonard and the Clippers.

Either way, NBA commissioner Adam Silver told reporters successful mid-July that he wants the investigation to beryllium "wrapped up earlier the opening of adjacent season." The Clippers person already agreed to waste and acquisition Leonard to the Toronto Raptors, but the Raptors plan to wait "until the league's investigation is complete" earlier finalizing that deal.

On Monday, Jake Fischer of The Stein Line reported that Leonard "strongly believes that the waste and acquisition will yet spell through." He added that the Clippers "are prepared to spell to arbitration depending connected the severity of the imaginable penalties that the convention agency could bid aft digesting the investigation's complete findings."

But if the NBA's investigation finds Torre's reporting to beryllium accurate, it mightiness person nary prime but to driblet the hammer connected the Clippers. Failing to do truthful could group a vulnerable leaguewide precedent, peculiarly arsenic the 2nd apron sinks its fangs into title hopefuls.

A Not-So-New Path For Big Threes?

In January 2024, Leonard signed a three-year, $149.5 cardinal hold that was astir $10 cardinal little than the maximum magnitude that he could person received. In doing so, it looked for illustration the Clippers "just created the blueprint of really to build astir Big Threes nether the NBA's caller corporate bargaining agreement," arsenic we wrote astatine the time.

That's what makes the cap-circumvention allegations truthful damning if they're true. If Leonard only accepted a below-max statement because he made up for his mislaid net (and past some) pinch bogus sponsorship deals, that gave the Clippers a awesome limb up connected their competitors.

The past fewer years person demonstrated really the 2nd apron is wreaking havoc crossed the NBA. The Boston Celtics blew isolated a title team to debar an NBA-record luxury-tax bill. The Oklahoma City Thunder salary-dumped Aaron Wiggins, Isaiah Joe and Lu Dort this offseason to thief trim their taxation measure and get themselves nether the 2nd apron, too. (And the financial symptom is only conscionable opening for them.)

Getting stars to return little than their maximum salary—as San Antonio Spurs wunderkind Victor Wembanyama did this offseason—is the 1 measurement for teams to wrest backmost power from the NBA's draconian corporate bargaining agreement. Otherwise, it mightiness require a moonshot for illustration landing LeBron James connected a veteran-minimum statement to bring equilibrium to prohibitively costly rosters.

Ironically, Leonard's below-max statement might person backfired connected the Clippers moreover anterior to Torre blowing the cap-circumvention whistle.

The Paul George Domino Effect

At first, the Clippers reportedly offered Leonard’s teammate, chap guardant Paul George, a two-year, $60 cardinal extension, which he recovered "kinda disrespectful." Once Leonard signed his extension, George signaled a willingness to judge the aforesaid deal, but the Clippers "didn't wanna do that" astatine the time.

After the 2023-24 season, George was group to go an unrestricted free agent. The Clippers were yet consenting to springiness him the aforesaid woody that Leonard received, but George past wanted a no-trade clause arsenic well. When they balked astatine that arsenic well, George pivoted and signed a four-year max woody pinch the Philadelphia 76ers worthy astir $212 million. The Sixers traded him 2 years later to the Boston Celtics successful their woody for Jaylen Brown.

Before George near L.A., squad president Lawrence Frank explained why the Clippers weren't consenting to manus him and Leonard a blank check.

"This is simply a business, and the reality of the caller CBA impacts teams for illustration us," Frank told reporters. "When your amended players are successful their 30s and you're trying to build a sustainable roster, it impacts it. Like if location was nary CBA, pinch [owner] Steve Ballmer, it would beryllium carte blanche. With the caller CBA, it's not moreover astir the money arsenic it is really are you going to build a sustainable roster, support your devices to person transactional flexibility? And pinch that comes really, really difficult decisions."

Losing George to the Sixers coiled up being the opening of the extremity for Leonard's tenure pinch the Clippers. They shipped James Harden to the Cleveland Cavaliers for Darius Garland astatine this year's waste and acquisition deadline, which each but guaranteed that the 35-year-old Leonard was the adjacent 1 retired the door.

Had Leonard not taken a below-max contract, the Clippers would person faced moreover tougher financial decisions pinch respect to George and Harden. It coiled up not mattering successful the end—both Harden and George person since near L.A.—but the results are acold little consequential than the process erstwhile it comes to their alleged headdress circumvention. What if Leonard's below-max woody had paved the measurement for them to support George and Harden arsenic well?

That's what makes these allegations specified a large deal. The 2nd apron is efficaciously designed to break costly teams isolated and administer prima talent much evenly crossed the NBA. If teams usage under-the-table sponsorship deals to thief offset the savings they get from players accepting below-max contracts, they're undermining the NBA's full financial system.

Despite his exhaustive reporting, Torre seems skeptical that the NBA will driblet the hammer connected Ballmer and the Clippers. But if the rule firm's investigation confirms his reporting, the NBA will beryllium hard-pressed not to enforce terrible punishments connected Leonard and the Clippers, threats of arbitration beryllium damned.

The integrity of the league's full salary-cap strategy is astatine stake.

Unless different noted, each stats via NBA.com, PBPStats, Cleaning the Glass aliases Basketball Reference. All net accusation via Spotrac and salary-cap accusation via RealGM. All likelihood via FanDuel Sportsbook.

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