The 76ers by becoming the first NBA team to sign a jersey patch sponsorship deal "look innovative on the business front,” while the $5M annual cost of the deal for StubHub is a “relatively cheap price to pay for the publicity," according to Daniel Roberts of YAHOO FINANCE. Many people are "talking about the 76ers and StubHub this week." For comparison, Chevrolet reportedly pays more than $67M to “have its name on Manchester United’s kits.” However, European soccer jersey real estate “is bigger and splashier than the small (if not subtle) 2.5-inch-by-2.5-inch patch that StubHub will have on 76er jerseys next season.” StubHub’s three-year deal “guarantees it’ll stay in the conversation for the duration" of the jersey ad "experiment.” Additionally, people cannot "take away from StubHub its title as first sponsor to sign.” By being first, StubHub has also “somewhat set the market rate for this new sponsorship.” The company now just needs to "activate its sponsorship the right way” (FINANCE.YAHOO.com, 5/17).
NOTHING ALL THAT NEW: 76ers CEO Scott O'Neil appeared yesterday on NPR's "All Things Considered" and noted many pro sports teams overseas are "all adorned with jerseys with logos, and they've all managed to run good businesses." O'Neil said, "I just want to make sure that we keep things in perspective here. As someone who's traveled around the world watching and participating in sporting events ... I've had the chance to see football matches in England and hockey in Prague and basketball games in Italy. ... Fans that buy them at retail. So I think we're in good shape on that front." People have worried about the NASCAR-ization of NBA jerseys, but O'Neil noted that is a "little different sport," as it does not "have this much centralized revenue that comes out of these teams." He said, "I don't think you'll see a much bigger patch or certainly more patches than you'll see on our jersey with the StubHub logo." O'Neil noted the league had "been talking about" jersey sponsorship "at the NBA board meetings for five-some-odd years." The 76ers just concluded the third-worst season in NBA history, and NPR's Ari Shapiro wondered if the team would have signed the StubHub deal if it "had a better year." O'Neil: "Oh, for sure." Shapiro: "You don't see the Warriors rushing to put a logo on their jersey." O'Neil: "Oh, they'll be out to the market selling it shortly. Have no fear" ("All Things Considered," NPR, 5/17).
INCH BY INCH: VOCATIV's Ryan Beckler noted the "obvious question" remains if NBA teams "can make several millions by selling tiny patches on uniforms, how much could they bank by covering the entire jersey in corporate sponsors?" An average NBA jersey "not accounting for the collar and arm openings, measures out" to about 1,796 square inches. Multiply that by the $800,000 StubHub is paying the 76ers per square inch, and the result is $1.43B in potential revenue per team. That number "doesn't take into account a few things: there needs to be room for the team logo and player numbers, the presence of dozens of other logos would devalue the overall ad space, and a sports franchise would never cover their entire jerseys in ads." But it "still illustrates a massive revenue opportunity for the NBA" (VOCATIV.com, 5/17).
PHILADELPHIA FREEDOM: The 76ers last night won the Draft Lottery, and coach Brett Brown said his "immediate thoughts go straight to the city of Philadelphia." Brown said, "They have been amazing allowing us to go through the Process that we have. We’ve taken hits for three seasons. We are excited with the position we are now in. ... I am thrilled for our city and the fans of Philadelphia” (“2016 NBA Draft Lottery,” ESPN, 5/17). Before the Lottery, ESPN’s Rachel Nichols asked if the 76ers landing the No. 1 pick would "validate ‘trust the Process’ movement in Philly?” ESPN’s Tom Penn: “No, no, no, no. Too much pain, too much suffering, too deep a valley. The Process went way overboard. They don't have enough to show for it.” Kings F Caron Butler said, “Trust the Process if you get Brandon Ingram or Ben Simmons” (“The Jump,” ESPN, 5/17).
