When the defending NBA champion Cleveland Cavaliers signed a deal with Goodyear a week ago to get the company’s Wingfoot logo on Cavs’ jerseys beginning next season, it raised plenty of eyebrows and upped the ante on advertising in pro sports.
The NBA in 2016 changed its long-held rule about advertising on nba jerseys online australia, initiating a 3-year pilot program starting with the 2017-18 season that allowed teams to sign individual relates to companies to get a 2.5” x 2.5” logo about the upper left side in the jersey.
The move coincides with Nike’s first season because the NBA’s official on-court apparel provider, taking over from Adidas in the deal priced at $1 billion. Nike may have its “swoosh” logo around the upper right side of most NBA jerseys apart from the Charlotte Hornets, majority properties of Michael Jordan, that can have Nike’s Jordan brand on its team jerseys.
Back then, industry analysts estimated teams could generate $3 – 5 million annually, with NBA Commissioner Adam Silver saying the league would see approximately $100 million in revenue but indicating it may be much higher.
“We still don’t know how much cash this will generate,” Silver said back then.
Five teams just before the Cavaliers signed jersey logo deals, averaging about $5 million annually per deal.
Due to the presence of LeBron James, the Cavaliers’ handle Goodyear is estimated north of $10 million annually. The sale also comes with multi-media support being handled by NBA media partner Turner Sports, along with an variety of co-branded merchandise.
Furthermore, it includes a $1 million donation to Cleveland and Akron school districts to support STEM (science, technology, engineering and mathematics).
Although they have yet to sign nba jerseys melbourne, the latest York Knicks, Chicago Bulls and La Lakers may also get $10 million annually mainly due to dimensions of their respective markets.
And that would not really the top figure. The Golden State Warriors have mentioned that any jersey logo deal they sign will be in the $15 – 20 million range per year.
All indications are the NBA intends to cash in on this revenue platform beyond the three-year test.
Many WNBA teams have for years had jersey-front sponsors. As well as in February, the NBA signed a multi-year deal naming Gatorade as title sponsor to the Developmental League, which, beginning with the 2017-18 season, be rebranded because the Gatorade League, including a G-League logo which will be featured on all game balls, all nba basketball jerseys, on-court signage and digital assets.
While NBA fans are rubbing their eyes in disbelief, fans of Nascar and soccer are saying, “Been there, done that.”
Pro soccer, the truth is, has some of the most lucrative jersey-sponsorship deals in sports.
Manchester United is in the midst of a seven-year deal with Chevrolet that brings in $80 million each year. Chelsea gets some $57 million annually through a jersey-front sponsorship 70dexppky with Yokohama Rubber.
“From a global scale, this is certainly commonplace. And also you are seeing it more domestically,” said Cavaliers CEO Len Komoroski. “This has become planned from the league to integrate business to boost both parties. This has been produced by the NBA within a deliberate fashion.”