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Tag: sponsorship

How NBA Jerseys Are Boosting the Fan Experience

Posted on by Athelo Group

By Jake Margolick

Athelo Group

When the NBA Jersey Patch Program was mentioned over a decade ago, deputy commissioner Adam Silver believed it would bring in a combined revenue of $100M across all 30 NBA teams. At first, fans feared this would merge the NBA with the corporate world. Critics drew comparisons to European soccer teams and worried brand placements would overshadow the team or city across the players’ chests. But sponsorship was nothing new within the sport: companies already sponsored basketball venues like the United Center, Barclays Center, and the Kia Center. It was only a matter of time before sponsored NBA jerseys became the new norm.

jersey sponsors

Teams and Sponsors Win Big

In the current NBA landscape, the program is projected to bring in over $250M annually, with innovation occurring year by year within jersey patch sponsorships. Last season, these sponsorships comprised nearly 15% of overall NBA sponsorship revenue, which netted a total $1.6B. And the benefits are mutual: companies with their logo on an NBA jersey win, too. They generate constant brand exposure to the millions of fans watching worldwide and earn opportunities to directly impact the fan experience at NBA games.

Fostering Fan Connections

The NBA first rolled out jersey patch sponsorships back in 2017, with two-thirds of teams joining this new-age marketing mechanism. Flash forward to this season, and fans will notice only three teams without them. Teams like the Orlando Magic and the Toronto Raptors have remained loyal to their sponsors for all seven seasons. Although teams may change sponsors, they typically stick with local brands and resonate with their fans and culture. For example, the Utah Jazz are in their first year of a jersey patch sponsorship deal with LiveView Technologies, a Utah-built and based national provider of innovative life safety and security technology. Ryan Smith, governor of the Utah Jazz, said, “We’re excited to feature the LVT logo on our jerseys and continue using that prominent space to celebrate the innovative, hard-working mindset that Utah is all about.” Sharing similar goals and mindsets is a key factor in developing a sports partnership, which is why LVT was a slam–dunk sponsorship fit for the Utah Jazz.

nba jerseys

Netting Engagement Among Younger Audiences

NBA teams are also utilizing jersey patch sponsorships to cater to younger audiences. By appealing to younger age ranges, typically 18–32, these teams are building longevity for their brand. The Charlotte Hornets’ new jersey patch sponsorship with MrBeast’s snack brand, Feastables, exemplifies this tactic. The sponsorship signifies the first creator-led company to partner with an NBA franchise. With over 230M subscribers on Youtube– the most by an individual creator– MrBeast has made a substantial impact in the content creator space. Considering 77% of internet users 15–35 years old watch YouTube, there’s a high probability this demographic either consumes or is familiar with MrBeast’s content. With the increase in influencers on YouTube and other social media apps like TikTok and Instagram, the Hornets could be the first franchise of many to wade into influencer marketing. Sponsorships could become less about showcasing faceless brands and instead move to elevating the platforms of online creators. In this new era, we can expect to see more NBA teams follow suit by placing a special focus on how younger audiences identify with their sponsors. Capturing the next generation not only ensures that the NBA maintains its millions of viewers each season, but also increases the revenue within the Jersey Patch Program.  

nba jerseys

Innovative Tech in NBA Jerseys

As technology becomes more prominent in our lives, we are bound to see innovation within jersey sponsorships on and off the court. We have already seen this from the Indiana Pacers, whose jersey patch sponsor, Spokenote, debuted their QR Code feature this month. This allows Spokenote to deliver content from within a live game, showcasing their “digital sticky note” product. For the Phoenix Suns, their jersey patch sponsorship deal with PayPal will elevate the fan experience by offering innovative payment solutions at the arena as well as online. This new agreement at the beginning of 2023 includes a Jersey Giveback program, where a portion of proceeds from jersey sales will be donated to non-profit organizations in the Phoenix area. This not only benefits the team and its sponsor but also the local communities of these teams, showcasing technological innovation and sports sponsorship centered around fan engagement.

While NBA jersey sponsors were initially met with skepticism, they now give significant boost to team finances and the NBA at large. Across professional sports, partnerships are increasingly embraced by companies aiming to leave their mark on one of the world’s highest revenue-generating industries. In just seven years of jersey sponsorships, there has been tremendous growth. With more teams switching to tech, financial sponsors, and even entertainment entities like MSG’s Sphere, there is promising improvement in not only delivering live content to fans but also in the overall fan experience at NBA games.

Sources:

  1. https://www.sportsbusinessjournal.com/Articles/2024/01/03/indiana-pacers-spokenote-jersey-ad-patch
  2. https://www.dailymail.co.uk/sport/nba/article-11792607/New-York-Knicks-eye-record-30m-year-jersey-sponsorship-rival-league-high-Nets-deal.html
  3. https://analyticsblog.blinkfire.com/blog/2022/10/26/2022-23-nba-jersey-patch-sponsors/
  4. https://www.forbes.com/sites/mikeozanian/2023/10/16/nba-sponsorship-revenue-hits-record-166-billion/?sh=326dfa972279
  5. https://www.sportspromedia.com/news/us-sports-sponsorship-revenue-2023-sponsorunited-mlb-nfl-nba-mls-nhl-wnba/#:~:text=National%20Basketball%20Association%20(NBA)%20franchises,over%20the%202022%2F23%20season
  6. https://www.marketingbrew.com/stories/2023/10/27/some-of-the-newest-nba-jersey-sponsors-are-brands-you-might-not-expect
  7. https://neoreach.com/feastables-sponsorship/#:~:text=The%20Feastables%20sponsorship%20could%20potentially,to%20a%20brand’s%20marketing%20strategy.
  8. https://newsroom.paypal-corp.com/2023-04-12-PHOENIX-SUNS-AND-PAYPAL-EXTEND-PARTNERSHIP-AGREEMENT-THROUGH-2026-NBA-SEASON-WITH-A-FOCUS-ON-ENHANCING-FAN-EXPERIENCE-AND-COMMUNITY-INVESTMENT#:~:text=As%20one%20of%20the%20largest,donated%20to%20local%20non%2Dprofits.
  9. https://www.nba.com/jazz/news/utah-jazz-announce-utah-based-lvt-as-jersey-patch-partner
  10. https://www.theshelf.com/the-blog/youtube-user-habits/

New and Upcoming Jersey Sponsorships

Posted on by Athelo Group

By Samson Wolpov

Athelo Group

After the hardships that COVID-19 brought to professional sports, league executives were forced to think outside of the box and produce new ways to generate revenue. Following the example led by soccer, executives across three of the core four professional US sports leagues have taken advantage of a mutually beneficial opportunity: corporate jersey sponsorships. In 2017, the NBA announced a three-year program that saw the incorporation of corporate logos on jerseys throughout the league. At the time, the NBA was the only one of the four major US sports leagues to launch this program, but just last year, the NHL decided it was time to take advantage of this revenue-generating opportunity and include corporate logos on their helmets and jerseys. Most recently, the MLB announced an initiative that will see the placement of corporate logos on either sleeve during the 2023 season.

The Rise of Jersey Patch Sponsorships in U.S. Pro Sports

With the NBA seen as veterans in this space, teams around the league are starting to look at different options regarding jersey sponsorships. Most recently, the Chicago Bulls signed a new multi-year contract with technology hardware company Motorola. Previously, the Bulls had formed a partnership with Zenni Optical, but once the three-year partnership expired, the Bulls wanted to bring in a company close to home. The Chicago-based technology company is now the exclusive smartphone manufacturer of the Bulls and is able to place digital assets throughout the organization. The Chicago Bulls president had this to say about the new partnership: “It is exciting to see us take this significant step into a new, expanded partnership that will have local, national, and global reach.” These two organizations not only share a common location but also a passion for bringing consumers together through various experiences such as different marketing activations and community initiatives that involve fans beyond the streets of Chicago.

How Teams Are Monetizing Patches

When the idea of implementing sponsored jersey patches was first mentioned, NBA commissioner, Adam Silver, projected that this initiative would generate $100 million in revenue for the 30 teams. Approximately five years later, it is being reported that the patches are now projected to bring in $225 million – more than double the initial estimate. Major market teams such as the Golden State Warriors or Los Angeles Lakers are charging nearly $20 million per year for their patch deals with global companies such as Rakuten and Bibigo. Additionally, non-major market teams such as the Sacramento Kings or Portland Trailblazers were able to double the rates of what a jersey patch may cost from the original $3-5 million range after the program was seen as impactful and mutually beneficial. While the monetary incentives are not the sole reason for teams to partake in this initiative, it gives some motivation for teams to reach new heights and continue to grow their brand.

Approved last month by the league’s board of governors, NHL teams are now able to discuss with any corporate company regarding jersey patch logos. Most recently, the Boston Bruins have signed their official jersey sponsor with a company right in their backyard. Rapid7, a cybersecurity company whose headquarters are next to TD Garden, home of the Bruins, has become the first jersey sponsor in the team’s history. The deal is estimated to be a 5-year deal worth $30 million. Over in Canada, the Toronto Mapleleafs have inked a deal with the Dairy Farmers of Ontario (DFO) to become their official jersey sponsor. This deal is more than just a revenue stream but a way to develop a partnership to support healthy living and access to the sport for players and fans around the world. Additionally, DFO has pledged to provide 5,000 tickets to games to community youth groups around the Toronto area. This is a great example of ways that these partnerships are more than just in-game signage, but a way to connect with fans and create meaningful relationships with them. 

This is an exciting time for the NHL as now 16 out of 32 teams have official jersey sponsors. While this is only the start for jersey sponsorships in the NHL, the hope is for them to generate revenue for teams while creating long-term relationships with communities and fans through various initiatives similar to the Maple Leafs x DFO partnership. 

The MLB is no stranger to this category of partnership as they have experimented with jersey patches on the sleeves during international games. For example, in 2019, the Boston Red Sox included the pain relief company, BioFreeze, on their sleeve during their game in London. During this year’s All-Star break, team marketers throughout the league met in Los Angeles to discuss the implementation of jersey patches for the first time in the states. While there has been only one concrete sponsorship deal made public in which the San Diego Padres and Motorola agreed to a 4-year $9 million deal, Mass Mutual has an informal agreement in place with the Boston Red Sox to become their official jersey sponsor. There will be more teams to join them as the San Francisco Giants have signed agency giant, WME, to facilitate a deal for them.

When Will the NFL Follow the Patch Trend?

Providing a new asset for sponsors to capitalize on has resulted in successful patch sponsorship programs across these three leagues, proving a successful revenue stream for teams and a highly visible location for brands to advertise and generate brand awareness. We expect to see more and more of these partnerships forging as the leagues continue to grow and expand in this space, building upon existing relationships or allowing new companies to take part in sports sponsorships. The biggest question outstanding at this point is: when is the NFL going to follow suit? 

Sources:

  1. https://www.sportspromedia.com/news/nhl-jersey-patch-sponsors-approved-2022-23-season/
  2. https://www.espn.com/nba/story/_/id/15210151/nba-jerseys-carry-advertisements-beginning-2017-18
  3. https://teammarketing.com/nhl-team-helmet-sponsors/
  4. https://www.sportspromedia.com/news/chicago-bulls-motorola-mobility-jersey-patch-sponsor-2022/
  5. https://boardroom.tv/nba-jersey-patch-program/
  6. https://www.msn.com/en-us/sports/nhl/bruins-reveal-cybersecurity-firm-rapid7-will-be-first-sponsor-of-patch-on-game-and-practice-jerseys/ar-AA127CFG
  7. https://www.gsmarena.com/motorola_inks_partnership_with_chicago_bulls_for_2223_nba_season-news-55884.php
  8. https://www.sportsbusinessjournal.com/Journal/Issues/2022/07/25/Upfront/MLB-jersey-patches.aspx?ana=top_stories
  9. https://www.actionnetwork.com/mlb/major-league-baseball-announces-jersey-patch-program-teams-2023

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