NBA Jersey Sponsorships have Tremendous Value
The NBA reached a record high when it came to sponsorship spending in 2018. For the first time, sponsorship revenue surpassed the $1 billion mark.
The NBA — after reaching $861 million in sponsorship revenue in 2017 — projected a 4.5 percent increase in 2018.
Instead, there was a 31 percent increase in sponsorship spending which led to the league reaching $1.12 billion in sponsorship revenue.
This jump is in direct correlation with the advertisements that were placed on the top part of NBA jerseys in 2018. Last season, NBA franchises were given the option to advertise corporate logos on their jerseys, and 20 of the 30 NBA franchises took advantage of this opportunity.
Teams that took advantage of the jersey sponsor space accounted for an additional $137 million in sponsorship revenue — a 16 percent increase.
Now the league also received lucrative deals from Nike, who outbid Adidas for league apparel rights. And from Verizon, who renewed and expanded its existing media and sponsorship agreement. Both added to this vast increase in revenue.
What About the Sponsors?
The league certainly benefited from the sponsor IDs on their team’s jerseys, but did the sponsors see a positive return on investment (ROI).
Lance Fraenkel from SMG-Insight, examined how brands were viewed after their logo was placed on an NBA team’s jersey.
When looking at the Cleveland Cavaliers and their partnership with Goodyear tires, we saw that the viewers/fans had a more favorable impression of Goodyear’s brand after seeing it on a player like LeBron James or the rest of the Cavaliers team.
Another team examined was the surprisingly successful Philadelphia 76ers. Their jersey sponsor, StubHub, also saw more favorable impressions of the brand from fans of Philadelphia — and other parts of that demographic.
Even the New York Knicks, who were a disaster these last few years, saw their sponsor, Squarespace, receive more favorable impressions as the season progressed into the later months.
As you would expect, the favorability for each brand continued to rise for teams that reached the postseason.
Per Forbes and GumGum Sports, the 2.5 by 2.5-inch patches generated over $350 million worth of value just through exposure on social media alone.
Many sponsorship deals for these patches started as low as $5 million over the span of three years, yielding a return on investment of 70 percent for the sponsor. Others have paid between $20–60 million for these sponsorship spaces and still saw an ROI of over 5 percent.
Where This Trend Is Heading…
Now that the jury is out on the NBA, we will likely see more professional sports leagues and franchises implement this advertising strategy.
Leagues like the MLB, NFL, and NHL have the potential to increase their sponsor revenues if they add the option for brands to sponsor their jerseys.
The NBA has proven that no matter how quickly the game moves, sponsors can benefit from a small logo on a players’ jersey thanks to camera angles and the pictures of athletes that circulate on the internet…especially on social media.
How Can Instant Sponsor Help?
Instant Sponsor will work these rights holders to facilitate sponsorship opportunities — like a logo on an NBA jersey — to brands looking for vast exposure on sports biggest stages.
The NBA has seen a revival in the last decade with superstars like LeBron James, Steph Curry, and Russell Westbrook who provide entertainment both on and off the court.
The additional theatrics and tension between teams fuels fan excitement and increases their desire to tune in for more each night.
And brands will be able to take advantage of a diverse collection of sponsorship opportunities available on the platform. Ranging from courtside signage on NBA sidelines to the caps and apparel of PGA Tour superstars.
Companies interested can simply log on to Instant Sponsor’s website and fill out their demographics, target audience, and budget. Instant Sponsor will do the rest by creating a campaign that will give a brand the greatest ROI possible while keeping staying within a set budget.
