The NBA is scrutinizing a significant sponsorship deal involving the Los Angeles Clippers and the green banking company, Aspiration, estimated at $300 million. The investigation has intensified following a separate agreement that Aspiration struck with Clippers star Kawhi Leonard, which is being examined for potential circumvention of salary cap regulations.
Initially, NBA Commissioner Adam Silver stated he had never heard of Aspiration when the deal with Leonard came to light. However, he later clarified that he was, in fact, familiar with the brand prior to the controversy. The Clippers had submitted the Aspiration sponsorship for NBA review due to its inclusion of a jersey patch—an arrangement that requires the league’s approval to prevent any brand conflicts or issues with existing league partnerships, according to league spokesperson Mike Bass.
At the heart of the investigation is the report that Steve Ballmer, the owner of the Clippers, invested $50 million in Aspiration back in September 2021. This investment raises questions about the implications of Leonard’s alleged four-year, $28 million no-show sponsorship deal, reportedly structured to circumvent salary cap limits. A former employee of Aspiration claimed that this arrangement was designed to provide financial benefits while keeping within the confines of the salary cap restrictions.
Despite the serious allegations, Ballmer has publicly denied any involvement in the contract between Leonard and Aspiration, insisting that he did not direct the deal in any manner. He has also described himself as having been misled by the company. Compounding the situation, federal prosecutors have accused Aspiration co-founder Joe Sanberg of defrauding investors and lenders out of $248 million through various deceptive practices. Sanberg has since pleaded guilty to multiple counts of wire fraud.
The situation illustrates the complexities and potential pitfalls that can arise in sports sponsorships, particularly regarding financial arrangements that may skirt league regulations. As the investigation unfolds, it underscores the importance of maintaining transparency in business dealings within professional sports. Ultimately, this incident serves as a reminder that both teams and their partners must operate within the governance structures in place to uphold the integrity of the league.