While NBA teams make money from ticket and merchandise sales, these revenue streams pale in comparison to the amount they receive from corporate sponsors. Commercials during televised and broadcasted games make up a big part of this, but a new facet to corporate branding is debuting soon in the National Basketball Association: corporate logos on jerseys.
This strategy is familiar in other sports, like Soccer and Nascar, but was only recently approved by the NBA. The Cleveland Cavaliers just announced a multi-year sponsorship deal with Goodyear, which is headquartered in nearby Akron. This new sponsorship strategy also comes with philanthropic benefits, as the two parties also announced an accompanying $1 million donation to public schools in Cleveland and Akron.
Other notable partnerships include Blue Diamond Almonds and the Sacramento Kings, StubHub and the Philadelphia 76ers, General Electric and the Boston Celtics, Infor and the Brooklyn Nets, and Qualtrics and the Utah Jazz. You can expect to see small, 2.5 square inch logos in the upper left-hand corner of your favorite team’s jersey as early as next season.
This gives the NBA a new revenue stream, but also diversifies and increases the sponsor’s exposure—a great wildcatting move on both sides of the ball. So, if you’re interested in stepping into the world of sports sponsorship, you’d better act fast before all the good teams are spoken for!