Making its biggest move yet into sponsorship marketing, cellular service brand T-Mobile has signed on as the NBA’s official telecom services provider. Sources close to the deal put the three-year agreement at worth more than $100 million, including advertising commitments on the NBA’s network and cable rights holders and NBA asset media and promotional commitments.
The deal, which also includes WNBA rights, makes T-Mobile one of the NBA’s largest corporate sponsors and is testimony to the escalating influence and budgets of the wireless telecom category.
Under the deal, T-Mobile receives rights to the entire telecom services sector, which would prevent the NBA from signing a wired service provider, such as SBC or any of the former Baby Bells. However, at a time when video content is an increasingly important part of every wireless sports rights deal, T-Mobile did not get rights to video clips of NBA games. Those rights were held by Verizon Wireless, an NBA sponsor since 2002, which T-Mobile replaced.
However, hardware provider Nokia does have video rights via its NBA deal — and Nokia is sold by T-Mobile.
T-Mobile has traditionally positioned itself as the youthful brand relative to its competition. Its earlier sponsorships in the United States were with action sports and cycling. Recently, as it shopped for a bigger sponsorship, the challenge was to find a sports property that was mainstream, yet one that allowed it to keep its connection to youth and music.
“It’s just the right fit for us,’’ said Mike Belcher, director of sponsorships and promotions. “The NBA [with the WNBA] gives us a year-round platform that skews a little younger and allows us to promote all parts of our business to a broad audience while keeping a youthful appeal.”
Heidi Ueberroth, NBA executive vice president of global media properties and marketing partnerships, added, “We both appeal to youth and we’re both good at mixing sports with lifestyle and entertainment.’’
T-Mobile has a sponsorship deal with its hometown Seattle SuperSonics. The company is looking at more team sponsorships and possibly some player endorsements and NBA-themed advertising. Activation plans around the new league deal are incomplete, but will start with the NBA “Premiere Week” that opens the season. T-Mobile will also activate at its retail outlets, sponsor balloting for the NBA All-Star Game and the NBA Rookie Game and Award, a platform last held by the dairy consortium for its Got Milk? campaign. The NBA says it is still in renewal discussions for the dairy group to remain as a league partner.
T-Mobile will also support the league’s “Rhythm ‘n Rims” grassroots music and sports tour, and the NBA draft. Cross marketing with fellow NBA rights holder Nokia is also anticipated.
Wasserman Media Group is T-Mobile’s sports and sponsorship agency.
