The investigation surrounding Kawhi Leonard and his reported ties to Daktronics has taken another significant turn, with the Securities and Exchange Commission now seeking information from the company.

Journalist Pablo Torre reported Wednesday that the SEC has opened an investigation involving Daktronics and Leonard. The development comes while the NBA is already requesting information connected to the Los Angeles Clippers.

“The Securities and Exchange Commission is seeking information from us concerning the company and [Kawhi] Leonard. We take these requests seriously and are cooperating,” Daktronics’ CFO said during the company’s earnings call.

Leonard’s relationship with Daktronics has attracted scrutiny because the company installed the massive double-sided 4K “Halo Board” inside the Clippers’ Intuit Dome.

Leonard reportedly served as a spokesperson for the company despite Daktronics traditionally focusing on business-to-business advertising rather than celebrity endorsements.

Torre has previously reported allegations that the arrangement was used by the Clippers to provide Leonard additional compensation outside his NBA contract and circumvent salary-cap rules. Those allegations remain under investigation.

The NBA has already been examining the situation and gathering information related to the Clippers. The SEC’s involvement now adds another layer to the ongoing matter.

There is currently no clear timeline for when either investigation will be completed. The NBA inquiry was already expected to potentially stretch into 2027, and the additional SEC scrutiny could further extend the process.