A few weeks back, the NBA announced that it will begin a jersey sponsorship pilot program for three years starting with the 2017-18 season.
While many fans have been opposed to seeing advertisements on uniforms, they won’t be very large. According to league’s initial release, sponsorship patches will be 2.5 inches by 2.5 inches, placed on the top left side of the uniform. Adjustments can be made depending on the size of the sponsor’s logo.
Each team will be able to negotiate their own deal for their jerseys, but the league has now placed some restrictions on who they can do business with.
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Nike and the NBA signed a 8-year apparel deal that will come into place for the 2017-18 season. It would look quite odd if a uniform had both a Nike and an Adidas logo on each side.
There’s a bit of a gray area with daily fantasy companies. Even though teams can do business with them in most aspects, they won’t be allowed to put their logos on jerseys.
The league itself is estimated to make $150 million from these advertisements, hardly a huge piece of the pie compared to the billions that the NBA generates annually. Still, $150 million is $150 million.
Some teams in bigger markets could cash in big time. According to Andy Dolich of CSN Bay Area, Manchester United makes $45 million a year from their deal with Chevrolet, and Chelsea earns $40 million annually from Yokohama Tire. Even though NBA teams likely won’t approach those numbers, it’s a sign of how valuable these sponsorships can be.
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