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Marketing and Sponsorship

NBA Giving Teams New Sponsorship Opportunities To Offset Losses

NBA teams will be able to sell previously off-limit baseline apron areas as sponsorship inventoryNBAE/GETTY IMAGES

The NBA is "opening lucrative new revenue streams" to help teams "offset steep losses from last season and limit financial hits should games next season be played in front of a limited number of fans or in empty arenas," according to John Lombardo of SPORTS BUSINESS JOURNAL. Teams now will be able to "sell the previously off-limit baseline apron areas near the baskets as new high-profile sponsorship inventory," though the baseline apron hard signage will be allowed "only on local regional sports network broadcasts." The league also will allow teams to "sell three global sponsorships as part of its International Team Marketing Program that previously was limited to two global deals." The international marketing program is "entering the second year of a three-year pilot program." The league also is "easing restrictions on hard alcohol, casino and sports betting team sponsorships that would allow for greater TV visible in-arena signage in those categories." Teams can "begin selling the new inventory immediately." It "isn’t known" just how much revenue will be "generated by the new inventory to help offset the roughly $1.5 billion leaguewide shortfall." Meanwhile, the NBA now will let teams "create nongame live digital content for second-screen use to complement game broadcasts." For example, a team "could stream its in-arena halftime shows live during games on their team website or team app to complement game programming" (SPORTS BUSINESS JOURNAL, 11/2 issue).

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