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Marketing and Sponsorship

NBA Seeks Team Feedback On Jersey Ad Proposal With Partial Revenue-Sharing Model

The topic of the NBA "putting corporate logos on uniforms is expected to be discussed" during the owner's meeting this weekend at the All-Star Game, and the league is "seeking comments from teams" in advance of the April BOG meeting, according to sources cited by Rovell & Windhorst of ESPN.com. Under the league proposal, which must be approved by the BOG, teams "will be able to sell one corporate logo on their uniforms" for the '17-18 season. That would "give teams a year to sell, and it would line up with the league's new apparel deal with Nike." In order to "address the disparity in market size and the value larger cities would have compared to smaller cities," the league is proposing that 50% of the money from uniform ad deals "would be kept by teams." The other 50% would "go into a revenue-sharing pot." Deals "would be restricted to three years." The All-Star Game jerseys feature a Kia logo "on the upper left chest" as part of a two-year deal sold by Turner. As with the Kia logo, the new proposal "features the future logo that teams can sell on the upper left chest." The "proposed size of the logo is 2 1/2 inches by 2 1/2 inches." Players will "share in the revenue generated, as the money gained will be considered part of Basketball Related Income, which is factored into the salary cap" (ESPN.com, 2/11). ESPN's Mike Greenberg said people will "make a big deal about it" if the NBA does put ads on jerseys, but "after about three weeks, you’re not even going to notice it.” ESPN's Mike Golic said, “The interesting part is if a team sells to Powerade and a player is Gatorade” (“Mike & Mike,” ESPN Radio, 2/12).

TURN THE SWITCH
: In Ft. Worth, Art Garcia notes the NBA recently "made a monumental switch, going from official outfitter adidas to Nike" starting with the '17-18 season in a move "worth an estimated" $1B for the league. Garcia: "With that kind of cash, it's no wonder the NBA is adding the Swoosh to their uniforms." adidas was "prominently shown on practice and warmup gear, but the three stripes were never on game unis" (FT. WORTH STAR-TELEGRAM, 2/12).

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