Unless he has a contract that says he "owns" LSU #5, no judge (and it will end up in federal court) is going to allow him to own a number that isn't contractually tied to him. It's like Caleb Williams attempt to copy write the word "Iceman" until he found out, because I suspect he didn't have a clue, who George Gervin is. In theory, Daniels can make money of pictures of him in a LSU #5 jersey if his name is on it. That probably stops LSU from making money on #5 jerseys with "Daniels" on it.
Our dear friend Kelly is the cause of this because he told the incoming player that he couldn't have #5. Considering that LSU does have "retired" numbers that aren't in use, Daniels looks very petty in this.