It is not uncommon for NBA star brand endorsements to be heard. Why is Xiaoka being censored?

In the NBA, it is quite common for stars to take on some endorsements and shoot promotional videos for them. However, there is no promotion or promotion between the Clippers' Leonard and his former team sponsor Aspiration. You know, the star signed a $28 million endorsement contract with the company, which led to the NBA's involvement in the investigation to find out whether there are potential wage cap violations. Part of the Clippers’ defense is that such trades are “not uncommon” in the NBA.

The Athletic investigated the relationship between players from 29 other NBA teams and corporate sponsors of those teams to find out whether this statement is true.

"The problem is not the price," said an NBA player agent. "If you heard, suppose Michael Jordan or Kobe Bryant had an endorsement contract, no matter how much it is, would you find it strange? The problem is the service actually provided and whether the team is an investor in the company that gives the player contract."

Aspiration not only agreed to sponsor the Clippers' jerseys and stadiums for $300 million, but also received a $50 million investment from team owner Steve Ballmer in September 2021 before signing a contract with Leonard in 2022. Weeks have passed since Torre’s podcast first revealed the complex relationship between Speedboat, Ballmer, Leonard and Aspiration, and no one has come up with evidence that Leonard has done any substantial work for the company.

"The trick here is too obvious, not just smoke," said the second NBA player agent. "It's ridiculous to do a deal of $7 million a year without doing anything."

"A ridiculous number," said another agent. "Often the price of such transactions is between $500,000 and $1 million, depending on the size of the company, the market, etc. And you can almost always see them actually doing some publicity."

The Athletic, the American media, contacted more than 50 companies that currently or have jersey sponsorships with NBA teams, asking them to disclose any separate endorsement agreements signed with players. Of the 20 jersey sponsors responding to the inquiry, only five said they had signed separate endorsement agreements with their team players.

In addition to Tatum, Curry of the Golden State Warriors also has many years of independent partnerships with Japanese company Rakuten, which not only includes advertising, but also collaboratively produces documentaries and other projects. Additionally, Dallas Mavericks rookie Cooper Flagge signed a contract with fintech company Chime a few days before the draft.

According to communications with player agents, NBA market representatives, team owners and CEOs, at least two confirmed endorsement contracts are less than the $28 million signed by Leonard with Aspiration.

"Individual players may be traded or injured," said Bill Day, a senior vice president and spokesperson for Frost Bank, a former jersey sponsor of the San Antonio Spurs. "We sometimes invite players, or more often former players, to participate in events we sponsor, but we don't sign individual endorsement contracts because it's easier to establish a long-term relationship with the team."

Through investigation, TA did not find any financial relationship between the major sponsors of any other team and the players, similar to the Clippers and Aspiration, that is, the team ownership has invested millions of dollars in the sponsor's funding pool and sponsored players. The cooperation between

companies and the teams they sponsor requires the participation of players in itself. Under the NBA's labor and capital agreement, players are obliged to attend "reasonable promotional activities" for team sponsors upon request. Players should attend at least 12 events per year for team sponsors. Their first eight appearances should be paid $3,500 each, and then $4,500 each, unless the team decides to pay a higher fee, and the fee is "consistent with the team's past practices and is not unreasonable."

When a corporate sponsor is interested in signing a player, the company may ask the NBA team it sponsors to help introduce and will not participate in any negotiations. Ballmer said he did exactly that with Aspiration and Leonard, and that's all.

Under the NBA's labor-management agreement with players, the league stipulates that if the contract between the sponsor and the player "is much greater than the reasonable market value of any service the player will provide", it can be judged as the team evades the salary cap using business partners, and Leonard's endorsement contract is obviously already in the gray area.