SBD/November 5, 2012/Marketing and Sponsorship

NBA Running Short On Time To Have Jersey Sponsorship Agreements In Place For '13-14

The “window of opportunity is closing for NBA teams to sign jersey advertising deals for next season," according to John Lombardo of SPORTSBUSINESS JOURNAL. NBA owners “did not address jersey advertising at length” during their recent BOG meeting. They instead “sent the issue back to the league’s 13-member planning committee to further study the feasibility of having corporate advertising on uniforms.” No consensus has been reached on "what exactly the process would be, including whether deals would be sold on the league or team level, and how any resulting revenue would be split.” The questions about "how teams would split any revenue generated are critical.” Sources said that the amount "could range from $800,000 a year for small-market teams to $15 million annually for big-market clubs” such as the Lakers and Knicks. A source said that various proposals under review include “one plan that calls for teams to pool a fixed percentage of any jersey deal's revenue, with the proceeds then split among all 30 teams.” Lombardo writes "the clock is ticking" for the league to have a system in place for the ’13-14 season. There also is a "fan-sales component." Putting logos on jerseys “at retail is a key part of the initiative.” For the purchasing advertiser, it means "not only having a company logo on the jerseys worn by a team’s players, but also on the jerseys purchased annually by that team’s fans.” A source said that the jersey deals “would have to be in place by April in order for NBA uniform partner Adidas to get the newly branded jerseys to retail by the start of the 2013-14 season” (SPORTSBUSINESS JOURNAL, 11/5 issue).
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