Sponsorships in sports are not something new or unheard of. The names of the sponsors can be seen splattered across the jerseys of payers, the billboards around the sports venue or even created digitally on the ground. This phenomenon can be seen in association with many sports including NASCAR, where the vehicle becomes an eye-catching hoarding for its sponsor. Football and cricket players are walking billboards of their multiple sponsors. The brands pay a hefty amount as sponsorship fee to get this kind of advertising.
New Trend for Basketball
The trend was not so visible in basketball, but that has changed. The team jerseys for the NBA also are getting sponsorships and must display the brand somewhere. Interestingly, rather than being splattered across the jersey, the brands get an exclusive patch of 2.5X2.5 on the upper right side of the players’ jerseys. Several sponsors have managed to sign a 3-year deal with 19 NBA teams.
NBA did consider the pros and cons of letting a small patch of a logo be placed on the jersey and concluded that the money that came in as NBA sponsorships with these small advertisement logos was worth it. 19 of the teams were interested in partnering with the brands and each was focussed on getting the top company in their state (or city) to be their partner.
The Sponsorship Values
The companies associated with the teams paid an amount based on the ranking of the team. The better teams were hence offered higher sponsorships from their brand to incorporate the small logo on their team jerseys. The brands got a good deal considering that their logo would get a lot of exposure while the game was played and if they had to pay for the same airtime, the cost would be way higher.
The Key Sponsors
Some of the sponsors that took the top spot in the deal were Goodyear, Disney, General Electric, StubHub, FitBit, Harley Davidson and Wish. The value of the biggest contract was $10 million paid annually for a period of 3 years. The smallest one was for valued at $4million a year. The many smaller players include Sharecare, Rakuten, Ultimate Software, Blue Diamond, Squarespace, Bumble, Sun Life, LendingTree, Infor and Zatarians
Benefits of the Sponsorship
The benefits of the sponsorship are available for the NBA, the teams and the sponsors. Let’s see how each stands to benefit:
- NBA and the teams
NBA takes the overall sponsorship and the teams get a part of it. Also, the NBA gets some part of the sponsorships that the teams earn.
- The Sponsors
When the fans buy their team jerseys, they also become advertisers for the brand. But that is not all. The real benefit of the sponsors comes from social media where they get a lot of exposure through every single game.
NBA is fast becoming a global sport and getting sponsorship on a team would definitely have its benefits. The patch is small as of now and is worth so much. In a few years, the equation could be different.