Kobe Bryant, the highest paid player in the NBA, faces his endorsement going bankrupt. He won’t receive any of his $25,244,493 million salary from the Lakers season and to top it off he lost his check for the endorsement deal. Bryant is one of the major and therefore most affected creditors of the soon to become bankrupt Power Balance LLC.
The company sells performance bracelets which are supposed to improve strength, balance and flexibility, for a retail price of $30. However, Power Balance LLC couldn’t produce any substantial credible scientific proof to support his claims when faced with Australian regulators inquiries.
According to the Orange County Register, Bryant was supposed to receive $400,000 for his endorsement of the bracelets. Other sportsmen who backed the project up lost their fees as well, including Clippers rookie Blake Griffin who was supposed to receive $20,000 and skateboarder Ryan Sheckler who is short $25,000.
Power Balance owes $250,491 to the NHL LA Kings and $100,000 in financial support to the NBA Sacramento Kings who sold the company the rights to name an arena. Shockingly enough the NBA’s Kings chose to disregard Power Balance’s poor current state and consider the company a trustworthy partner as it has been since day one.
Power Balance is evaluated to own assets of $10 million versus a total debt raising to over five time times as much. Common sense indicates that none of the sportsmen and brands who endorsed its products are likely to ever receive their fees. According to the Orange County Register the company plans to keep his activity going on during its reorganization in an attempt to attract more consumers for the miracle $30 worth bracelets.