Starting with the 2017-18 season, NBA teams will be able to display sponsorship patches on their jerseys. These deals are already being negotiated, and with the recent addition of Kevin Durant, the Golden State Warriors have more chips at the table than any other team.
The 2015 NBA champions and back-to-back Western Conference winners set the record for wins in a regular season last year, and they now have four First Team All-NBA players on the same roster. Their brand is growing fast, and they know it.
With the 2½-inch by 2½-inch endorsement patches set to appear on the upper left of jerseys in a couple years, ESPN's Darren Rovell reports that the “Warriors are asking for $15 million to $20 million per year for the rights for a company to put its logo on their jersey.”
Rovell also notes that this is reportedly the highest figure being sought for these patches in the NBA.
In contrast, the Philadelphia 76ers, the only franchise to agree on a deal for this so far, are set to make $5 million a year from StubHub.
Given their star power and market size, it's not surprising that the Dubs are demanding between three and four times as much as the Sixers.
Rovell provided more details on the process:
What companies will ultimately pay is said to be based on how much is included in the package beyond the logo on the jersey, such as whether they get sponsor category exclusivity, arena signage inventory and breadth of use to a team's logos for marketing.
Category competitiveness will also play a part, as a company in the tech sector with hundreds of competitors would likely pay more than a soft drink company, which features a main battle of Coca-Cola versus Pepsi.
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