The NBA has officially approved a substantial sponsorship agreement between the Los Angeles Clippers and Aspiration, valued at $300 million. Announced in September 2021, this partnership is notable for its inclusion of a jersey patch component, which requires league approval under NBA regulations.
Details of the Sponsorship Agreement
The sponsorship deal spans a term of 23 years and involves various elements, including signage in the Clippers’ new arena in Inglewood, California. These details were confirmed by sources familiar with the transaction.
Controversies Surrounding the Deal
Shortly after the initial agreement, Aspiration entered into a separate $28 million endorsement deal with Clippers star Kawhi Leonard. This agreement has raised suspicions of salary cap circumvention, prompting an investigation by the NBA.
NBA Investigation
The league is scrutinizing whether owner Steve Ballmer and the Clippers breached salary cap rules associated with Leonard’s contract. Initially, NBA Commissioner Adam Silver claimed he was unaware of Aspiration. However, he later acknowledged having knowledge of the brand.
- Clippers’ sponsorship deals require NBA approval if they include jersey patches or TV-visible signage.
- Sponsorships related to cannabis, gaming, and energy drinks are also under stricter review.
NBA spokesperson Mike Bass highlighted that teams conduct their own sponsorship negotiations while submitting relevant agreements to the league for approval.
Contractual Obligations and Guidelines
According to the NBA 2021-22 operations manual, teams must receive approval before announcing any jersey patch agreements. The guidelines dictate everything from the dimensions of the patch to contractual clauses that mitigate risks associated with sponsorship controversies.
Recent Developments
In 2024, Aspiration, which informed the Clippers of a termination of their sponsorship agreement, faced a Department of Justice investigation for allegedly misleading customers. The company’s financial situation worsened when it filed for bankruptcy in March 2025, claiming debts of $170 million, including $30 million owed to the Clippers.
Legal Actions
- Aspiration co-founder Joe Sanberg pleaded guilty to wire fraud charges involving $248 million.
- Ballmer stated his interactions with Aspiration would be reviewed during the ongoing investigation.
The NBA has engaged law firm Wachtell Lipton, Rosen & Katz to conduct an extensive review regarding potential violations related to salary cap regulations. This investigation could extend well into the future, potentially lasting until the conclusion of the 2026 NBA playoffs.
Commissioner Silver emphasized that the burden of proof rests with the league when considering disciplinary actions. The results of this investigation will determine any forthcoming measures against the Clippers or associated parties.
