Clippers in NBA’s Crosshairs for Sponsorship Deal with Aspiration
The NBA is investigating a sponsorship deal between the Los Angeles Clippers and the green banking company Aspiration, which may have violated salary cap rules. The initial deal, valued at $300 million, was approved by the league in 2021, months before Aspiration signed a separate contract with Clippers star Kawhi Leonard. Sources close to the matter revealed that the Clippers submitted the 23-year agreement to the NBA for approval, as required by league regulations due to the inclusion of a jersey patch. The agreement also included advertising in the team’s future stadium in Inglewood. In April 2022, Aspiration signed a sponsorship deal with Leonard for $28 million, an agreement that, according to an anonymous source, aimed to circumvent the salary cap. The NBA does not review sponsorship deals with players, unlike deals involving jersey patches and televised advertising, which are subject to league approval.The Aspiration logo was scheduled to appear on the Clippers’ jerseys at the start of the 2023-24 season, but it ultimately didn’t materialize. In January 2024, it was reported that Aspiration was being investigated by the Department of Justice and the Commodity Futures Trading Commission. Aspiration declared bankruptcy in March, with a reported debt of $170 million. The company’s co-founder, Joe Sanberg, pleaded guilty to wire fraud, defrauding investors and lenders of $248 million. Clippers owner Steve Ballmer said he was deceived by Aspiration and is cooperating with the Department of Justice investigation. The NBA has hired the law firm Wachtell Lipton, Rosen & Katz to investigate whether the Clippers violated salary cap rules. The investigation process could take months and could extend until after the 2026 NBA playoffs. NBA Commissioner Adam Silver is not solely responsible for deciding whether the Clippers will be sanctioned, depending on the findings. The law firm will present its findings to the league office, and Silver will have to decide whether to present the evidence to a neutral arbitrator. The referee will decide if there is enough evidence to sanction the Clippers. Silver stated that the league has the responsibility to demonstrate any infraction that could lead to a sanction against a team.Teams evaluate their own sponsorship partners and negotiate their own sponsorship deals.
Mike Bass, NBA spokesperson
