Virtual signage likely would appear on broadcasts in teams' markets and on national broadcastsNBAE/GETTY IMAGES
The NBA is considering a plan to offer virtual signage to help teams meet obligations of significant team sponsors when the league restarts next month in Orlando. While league and team execs stress that nothing has been finalized, discussions between the league, its TV networks and teams are focusing on a plan that would allow teams to use on-court virtual signage for their arena naming-rights partners for games played at the Disney campus in Orlando. The virtual signage likely would appear on local game broadcasts for teams in their respective markets and on national broadcasts. The plan is also expected to include league inventory, but no final decisions have been made. In addition, the league is looking to give teams virtual signage inventory for the floor apron in front of their respective team benches during broadcasts, and to allow teams to use rotational signage for games. There is also talk of allowing virtual signage near player tunnels or any other highly visible areas of the three courts at the ESPN Wide World of Sports complex that will be utilized for play.
STRONG SUPPORT FROM TEAMS: All of the plans are subject to negotiations with the league’s national broadcast partners and local RSNs for the 22 teams that will play in Orlando beginning July 30, but there is strong team support for the plan as they look to fulfill sponsorship agreements from their most valuable business partners and offer make-goods for missed games. “I believe that we will be able to deliver on the majority of our sponsorship commitments depending upon the amount of inventory that is afforded us during the games,” Magic CEO Alex Martins said. “Our hope is that we can make good on any assets that we would have delivered if we played during the regular season format.” The NBA would not comment on the virtual signage effort.
WHAT COMES NEXT? NBA teams have played about 80% of their regular season, leaving teams to deliver on about 20% of their sponsorship assets, according to a team source. Adding hard signage in the three Disney facilities is also being addressed, though the league must address any sponsorship category conflicts with Disney, sources said. As of June 18, no vendor had been selected to develop the virtual signage. “The sponsorship community expects that when all the leagues come back, including the NBA, there will be a portfolio of what teams can provide,” Paragon Marketing Group Exec VP and Partner Tony Schiller said. “It is fair to assume that there will be virtual integration of branding as part of the broadcasts. Everything is still subjective until there is comprehensive definition.” Anheuser-Busch VP/Partnerships, Beer Culture and Community Nick Kelly said, “We know the NBA is adding assets but we still don’t know what they'll be. The biggest question is who’s providing value?"
