As soon as the defending NBA champion Cleveland Cavaliers signed an agreement with Goodyear last week to achieve the company’s Wingfoot logo on Cavs’ jerseys beginning next season, it raised lots of eyebrows and upped the ante on advertising in pro sports.
The NBA in 2016 changed its long-held rule about advertising on nba jerseys australia, initiating a three-year pilot program beginning with the 2017-18 season that allowed teams to sign individual relates to companies to possess a 2.5” x 2.5” logo about the upper left side from the jersey.
The move coincides with Nike’s first season because the NBA’s official on-court apparel provider, taking over from Adidas inside a deal worth $1 billion. Nike could have its “swoosh” logo on the upper right side of most NBA jerseys except for the Charlotte Hornets, majority owned by Michael Jordan, which can have Nike’s Jordan brand on its team jerseys.
At that 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 can be greater.
“We still don’t know how much cash this can generate,” Silver said at that time.
Five teams just before the Cavaliers signed jersey logo deals, averaging about $5 million annually per deal.
Due to presence of LeBron James, the Cavaliers’ handle Goodyear continues to be estimated north of $ten million annually. The deal also comes along with multi-media support being handled by NBA media partner Turner Sports, plus an selection of co-branded merchandise.
It also features a $1 million donation to Cleveland and Akron school districts to aid STEM (science, technology, engineering and mathematics).
While they have yet to sign cheap basketball jerseys australia, the brand new York Knicks, Chicago Bulls and La Lakers may also get $10 million each year mainly because of the size of their respective markets.
Which would not be the top figure. The Golden State Warriors have claimed that any jersey logo deal they sign can be from the $15 – 20 million range per year.
All indications are that this NBA intends to profit from this revenue platform beyond the three-year test.
Many WNBA teams have for a long time had jersey-front sponsors. And then in February, the NBA signed a multi-year deal naming Gatorade as title sponsor for the Developmental League, which, starting with the 2017-18 season, be rebranded because the Gatorade League, complete with a G-League logo which will be featured on all game balls, all nba jerseys sydney, on-court signage and digital assets.
While NBA fans are rubbing their eyes in disbelief, fans of Nascar and soccer say, “Been there, done that.”
Pro soccer, in fact, has many of the most lucrative jersey-sponsorship deals in sports.
Manchester United is in the midst of a seven-year handle Chevrolet which brings in $80 million each year. Chelsea gets some $57 million annually by way of a jersey-front sponsorship 70dexppky with Yokohama Rubber.
“From a global scale, this is commonplace. And you are seeing it more domestically,” said Cavaliers CEO Len Komoroski. “This is planned from the league to integrate business to improve each party. It really has been made by the NBA in the deliberate fashion.”