Although marketing deals and basketball have gone hand-in-hand for decades, the decision made by the NBA to approve jersey advertisements has been met with derision by certain sections of fans. The 2.5-inch-square patch advertisements, which are scheduled to debut in the 2017-18 season, will be a good money maker for NBA franchises, and the NFL, NHL and MLB are sure to have a close eye on how these marketing sponsorships pan out.
The Philadelphia 76ers – the worst team in the league last season – were the first team to agree a deal to feature sponsorship on player jerseys. StubHub have agreed to pay a reported $5 million a year (for a three-year trial period) to have its logo displayed on the top left of the team’s jersey.
At the other end of the league, the Golden State Warriors are looking for a yearly figure of between $15 million - $20 million for that small piece of jersey real estate, according to ESPN. With two-time MVP Stephen Curry in their ranks and with the addition of former MVP Kevin Durant, the Warriors, who recently broke the NBA’s record for wins in a season, are hoping to cash in on their status as the league’s most marketable team.
Jersey sponsorship is nothing new and soccer teams’ uniforms have long acted as marketing platforms for companies willing to spend big on advertising. When you consider that Manchester United makes $68.2 million a year from its sponsorship contract with Chevrolet, it’s easy to see where NBA decision makers are getting their inspiration.
The fans may not be happy but the accountants most certainly are, and with NBA’s popularity growing around the world, chief marketing officers at corporate giants are sure to see basketball franchises as appealing partners. It seems only inevitable that the NFL, NHL and MLB will soon be sitting down to hammer out jersey sponsorship deals.
