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Marketing and Sponsorship

NHL Decides Against Selling Jersey Ads Despite Promise Of Additional Revenue

The NHL will not sell “prime space on team jerseys to sponsors, a move the league estimates would generate” at least $120M, according to Rick Westhead of TSN.ca. A source said that during a recent team presidents meeting in N.Y., NHL execs "estimated they might raise" $4M per team by "allowing corporate sponsors to put their logos front and centre on jerseys." The source said NHL Commissioner Gary Bettman and team owners "like the money, but they don’t want to be first out of the box with this in North America." The source added, "They’ll wait for the NBA or baseball to do it and then be second or third." NBA Commissioner Adam Silver in March said jersey ads were "inevitable" in his league. Meanwhile, Westhead reports during the NHL meeting, league COO John Collins "discussed plans to use technology to sell rink board ads in a different way." The "erase and replace" boards would feature ads "that can be replaced on TV, meaning the NHL can sell region-specific ads to advertisers." The Flyers talked about adding "more ads on the ice surface," while league officials mentioned ways to "generate more revenue from jersey sales, which have been relatively flat in recent years." Reebok's current jersey deal expires in '16, and sources said that companies "including Bauer and Under Armour are expected to pursue a new deal with the NHL" (TSN.ca, 9/17).

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