NBA Authorized Clippers’ $300 Million Aspiration Sponsorship Despite Commissioner’s Initial Uncertainty
The National Basketball Association approved a 23-year, $300 million sponsorship deal between the Los Angeles Clippers and the now-defunct financial technology company Aspiration in 2021, a deal that is now under scrutiny following Aspiration’s bankruptcy and fraud allegations.
The agreement, which would have included a jersey patch for the Clippers, required league approval due to the “level of exposure” and to prevent conflicts with existing NBA partnerships, according to NBA spokesperson Mike Bass. While NBA Commissioner Adam Silver initially stated on September 16th that he had “never heard of the company before,” he later clarified he was unfamiliar with Aspiration “in the context of the allegations.” The league is now investigating whether the Clippers used a separate, $28-million marketing agreement with Kawhi Leonard – a deal that allowed Leonard to opt out of obligations at any time – to circumvent salary cap rules.
Documents reveal that Clippers owner Steve Ballmer invested $50 million in Aspiration in September 2021, and the team sent the company $32.4 million on the same day Leonard signed his marketing agreement in April 2022. Despite the NBA’s ratification of the sponsorship, Aspiration patches never appeared on Clippers jerseys; the team announced the partnership’s termination the prior season as federal investigations into Aspiration’s potentially misleading carbon credit claims surfaced. Aspiration filed for bankruptcy in March, and co-founder Joseph Sanberg has agreed to plead guilty to defrauding investors of $248 million – a case that highlights the increasing due diligence required in advertising and marketing practices.
The NBA continues to review the circumstances surrounding the Clippers’ partnership with Aspiration and the related financial transactions. Officials have stated they are committed to ensuring the integrity of the league’s financial regulations and will take appropriate action based on the findings of the investigation.
