If the defending NBA champion Cleveland Cavaliers signed a deal with Goodyear a couple weeks ago to get the company’s Wingfoot logo on Cavs’ jerseys beginning next season, it raised a great deal of eyebrows and upped the ante on advertising in pro sports.
The NBA in 2016 changed its long-held rule about advertising on wholesale nba jerseys, initiating a 3-year pilot program starting with the 2017-18 season that allowed teams to sign individual handles companies to possess a 2.5” x 2.5” logo in the upper left side of the jersey.
The move coincides with Nike’s first season as being the NBA’s official on-court apparel provider, overtaking from Adidas in a deal worth $1 billion. Nike can have its “swoosh” logo about the upper right side of all the NBA jerseys except for the Charlotte Hornets, majority belonging to Michael Jordan, that will have Nike’s Jordan brand on its team jerseys.
During the time, industry analysts estimated teams could generate $3 – 5 million annually, with NBA Commissioner Adam Silver saying the league would see approximately $100 million in revenue but indicating it could be much higher.
“We still don’t know how much money this can generate,” Silver said back then.
Five teams prior to the Cavaliers signed jersey logo deals, averaging about $5 million annually per deal.
Because of the presence of LeBron James, the Cavaliers’ cope with Goodyear continues to be estimated north of $ten million annually. The sale also includes multi-media support being handled by NBA media partner Turner Sports, as well as an selection of co-branded merchandise.
It also includes a $1 million donation to Cleveland and Akron school districts to support STEM (science, technology, engineering and mathematics).
Though they have yet to sign nba jerseys online australia, the latest York Knicks, Chicago Bulls and Los Angeles Lakers may also get $ten million per year mainly because of the scale of their respective markets.
And that would not be the best figure. The Golden State Warriors have claimed that any jersey logo deal they sign will be in the $15 – 20 million range annually.
All indications are that this NBA plans to take advantage of this revenue platform beyond the three-year test.
Many WNBA teams have for a long time had jersey-front sponsors. And in February, the NBA signed a multi-year deal naming Gatorade as title sponsor to the Developmental League, which, starting with the 2017-18 season, be rebranded as the Gatorade League, including a G-League logo that will be featured on all game balls, all nba jerseys online australia, on-court signage and digital assets.
While NBA fans are rubbing their eyes in disbelief, fans of Nascar and soccer are saying, “Been there, done that.”
Pro soccer, actually, has some of the most lucrative jersey-sponsorship deals in sports.
Manchester United is in the midst of a seven-year cope with Chevrolet that literally brings in $80 million a year. Chelsea gets some $57 million annually by way of a jersey-front sponsorship 70dexppky with Yokohama Rubber.
“From a worldwide scale, this can be commonplace. And also you are seeing it more domestically,” said Cavaliers CEO Len Komoroski. “This has become planned from the league to integrate business to further improve each party. This has been developed by the NBA in a deliberate fashion.”