The economic boom that has lifted the NBA to new highs for franchise valuations and sponsorship sales is also boosting the league’s consumer products business.
The fiscal year that ended Sept. 30 produced another record yield for NBA licensees. Without revealing specific sales figures, Chris Brennan, senior vice president, global retail development, said sales at NBAStore.com increased 11 percent, while merchandise sales in NBA arenas surged a remarkable 17 percent, aided by one of the best postseason and championship markets ever.
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Golden State title T-shirts were among top sellers.
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“We had two mammoth teams with a lot of pent-up demand in Golden State and Cleveland, and both had marquee players [LeBron James and Stephen Curry],” Brennan said. “That combination just catapulted our business.”
Championship apparel, especially Adidas T-shirts, along with knit and snapback caps from the likes of ’47 Brand, New Era and Adidas were especially strong. Top-selling NBA items on licensed sports e-commerce site Fanatics since Jan. 1 were all hot-market items from Adidas: 1) a Golden State championship snapback cap; 2), 3) and 4) various Golden State T-shirts; and 5) a Cleveland Cavaliers playoff T-shirt.
Brennan also credited growth from offshore sales, which now represent 35 percent of sales and include separate e-commerce sites serving Australia, New Zealand, Brazil, China, Mexico, Europe and India.
For the new season, updated team identities and uniforms for the Atlanta Hawks, Los Angeles Clippers, Milwaukee Bucks and Toronto Raptors are the big news, along with Stance Socks moving on court with an “authentic” product, after several years of selling socks with player likenesses and “classic” NBA logos. Stance and fellow NBA business partner Foot Locker are teaming for a program in which retail displays will carry the league’s new “This Is Why We Play” thematic.
The “NBA 2K16” video game had its fastest start ever at retail, with 4 million units sold a week after its September launch. NPD Group said it was the top-selling video game of any type for September.
