NBA's Approval of Clippers' Deal with Aspiration: A Complex Story
The NBA's approval of the Los Angeles Clippers' $300 million sponsorship deal with Aspiration in 2021 has sparked curiosity and controversy. Sources revealed that the NBA authorized the 23-year agreement, which included a patch on the Clippers' jerseys, despite the league's strict policies on jersey patches. NBA spokesperson Mike Bass emphasized the importance of league approval for such deals due to their high exposure and potential brand conflicts.
The partnership's approval process was intriguing. NBA Commissioner Adam Silver initially claimed he had never heard of Aspiration, but later admitted familiarity with the brand. This discrepancy raises questions about the approval process and the NBA's handling of potential conflicts of interest. The Clippers' announcement of their partnership in September 2021 followed by the signing of Kawhi Leonard to a separate marketing deal in April 2022 adds to the complexity.
The Leonard deal, known as a 'no-show' contract, allowed him to opt out of obligations, according to journalist Pablo Torre. While this deal didn't require league approval, the NBA is now investigating whether it was used to circumvent the salary cap. The Clippers' organization, owner Steve Ballmer, and co-owner Dennis Wong made payments to Aspiration, with Ballmer investing $50 million in the company. The team also sent $32.4 million to Aspiration on the same day Leonard signed his deal.
Despite the NBA's ratification, Aspiration patches never appeared on Clippers jerseys. The partnership was terminated before the 2023-24 season, as reports emerged of federal investigations into Aspiration's misleading claims about carbon credits. The company declared bankruptcy in March, and co-founder Joseph Sanberg pleaded guilty to defrauding investors of $248 million. This saga highlights the NBA's challenges in managing sponsorship deals and the potential risks associated with less-known brands.
