The Los Angeles Clippers are already facing scrutiny from the NBA over allegations of salary-cap circumvention. Now, another reported multi-million-dollar endorsement involving Kawhi Leonard has added even more fuel to the controversy.
Stephen A. Smith believes the potential consequences could be severe.
Stephen A. Smith Issues Blunt Clippers Scandal Verdict as Kawhi Leonard, Steve Ballmer Face Heat
On the “Pablo Torre Finds Out” show last year, the host previously alleged that Leonard received a $28 million no-show deal from the now-defunct Aspiration, a former Clippers sponsor.
Torre reported that Ballmer’s investment in the company was used to funnel money to the two-time NBA Finals MVP.
While the NBA continues to examine those allegations, Torre dropped another bombshell Thursday. The podcaster reported that Leonard had another multi-million-dollar side endorsement with Daktronics, the company responsible for building the $100 million video board inside Intuit Dome, the Clippers’ $2 billion home arena.
Torre alleged that the arrangement could also have been used to skirt around the NBA’s salary cap.
Like the Aspiration deal, Torre said there was evidence suggesting Leonard received money without working for Daktronics.
According to a source cited by Torre, the agreement was a “1,000% a way to circumvent the salary cap. It was funneling money from the Clippers through Daktronics back to Kawhi.”
SEE ALSO: ‘Gonna Be Fun To Watch’ – 76ers President Zeroes In on LeBron James’ Role, Fit Alongside Joel Embiid
Smith, who addressed Torre’s latest report on “First Take,” did not hold back when discussing what could happen if the allegations are ultimately proven true.
“The Clippers are in a world of trouble. … This is egregious if it’s true. If it’s true, we’re talking about banishment for Steve Ballmer as far as I’m concerned for at least a year. It should be entertained that Kawhi Leonard should be banned for a year,” Smith said.
“The Clippers are in a world of trouble… It should be entertained that Kawhi Leonard should be banned for a year.” 😬@stephenasmith comments on the controversy surrounding Kawhi Leonard’s sponsorship deal 👀 pic.twitter.com/6CJLpyH3mm
— First Take (@FirstTake) August 7, 2026
The veteran sports talk show host then directed his strongest criticism toward Leonard.
“You had not one but a couple of companies funding that money to you to circumvent the salary cap where you’re getting this money but you also getting these additional dollars on the side?” Smith added.
“…Let’s face reality. There’s nobody worth two cents that’s going to believe this is the only place that’s happening, if it’s true. There’s no way on earth that Kawhi Leonard was innovative, and he’s the one that pulled this off. … There’s nobody that should give a masterclass on how to get paid without working better than Kawhi Leonard.”
The NBA salary cap exists in part to promote competitive balance and prevent teams from gaining an unfair financial advantage.
If the league ultimately determines that the Clippers violated its rules, the franchise and those involved could face significant penalties, potentially including fines and the loss of draft picks.
Leonard’s $50.3 million salary for the 2026-27 season could be voided if wrongdoing is established. However, any specific punishment would depend on the league’s findings and the applicable rules.
For now, Smith is taking the argument a step further than conventional penalties. His call for possible one-year bans shows just how serious the Clippers controversy could become if the NBA’s investigation ultimately validates the allegations.
Until then, the biggest question remains unanswered: what will the league find, and how far will it go if the claims are proven true?
