Power Balance LLC’s multi-year title sponsorship with the Sacramento Kings, which included stadium naming rights, has ended less than two years into the deal.
The Lake Forest company, which is currently in Chapter 11 bankruptcy, will no longer have signage on the King’s stadium or other team marketing materials.
“The signage will be down by early next week or the following week at the latest,” said Kings spokesman Chris Clark. “They went bankrupt.”
Workers were seen taking down the company’s signage earlier this week, but a storm temporarily halted work.
In October the Kings signed a multiyear deal with Rocklin-based Sleep Train Mattress Centers to replace Power Balance as the title sponsor. The stadium, which was called Power Balance Pavilion, is now called Sleep Train Arena.
Power Balance owes $100,000 to the Sacramento Kings, according to bankruptcy filings. It’s sponsorship was reportedly around $1 million a year.
The company, which markets wristbands, pendants and other products for athletes, has been hurt by lawsuits and customer complaints. It reportedly paid out a $57 million settlement last year with customers who charged the company with false advertising over the marketed benefits of wearing its bracelets.
Power Balance has denied those reports, saying it paid out $1 million.
In early 2011 the Australian government required the company to run a corrective advertisement acknowledging that there was no scientific evidence its products improve strength, balance and flexibility, contrary to the company’s original claims.
Sales had topped $52 million in 2010, as the company used a long list of athletes to market its products, including Los Angeles Lakers star Kobe Bryant, Shaquille O’Neal, as well as Los Angeles Clipper standout Blake Griffin.
In January 2011, Power Balance and Maloof Sports & Entertainment—headed by Kings co-owners Joe and Gavin Maloof—struck a five-year deal including naming rights for the Sacramento arena.
The company was hit with a rash of bad press earlier this week when Dallas Mavericks owner Mark Cuban mocked the National Basketball Association’s deal with Power Balance in a YouTube video in which he was seen throwing several new bracelets in the garbage can and calling the products a “scam.”
A Power Balance spokesperson did not immediately respond for comment.