Indiana Pacers executives are discussing a new revenue opportunity that would have been seen as taboo just two decades ago: a corporate logo stitched onto the team’s uniforms. Rick Fuson, the Pacers’ chief operations officer, said the franchise is supportive of having an advertisement on the team’s white, blue and gold jerseys. In fact, Fuson said the Pacers are planning to have a corporate sponsorship deal in place for the start of the 2017-18 season, which is when NBA teams can debut sponsored patches on uniforms. “We are hopeful and look forward in talking to a number of folks who may have interest in that,” he said. “I’m confident that many teams, if not most, will have a great sponsor on the uniform.”
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The NBA announced last month that it would be the first league among the four major sports to allow advertising on regular season uniforms as part of a three-year trial approved by owners. Teams will be allowed to sell advertising in the form of a patch, approximately 2 ½ inches x 2 ½ inches, beginning in the 2017-18 season, coinciding with Nike’s new deal with the league. “First off, hats off to Adam Silver,” Sixers CEO Scott O’Neil told USA TODAY Sports. “He’s a commissioner who will take opportunities and will make the right decision and sometimes the tough decision and he continues to lead through policy. He gives teams the opportunity to drive our business.”
The three-year deal is worth $5 million per season, according to a person with knowledge of the deal. The person spoke to USA TODAY Sports on the condition of anonymity because they are not authorized to speak publicly on the matter.
Scott Soshnick: BREAKING: @Sixers first @NBA team to sign jersey sponsor deal - get $5 million/year from @StubHub #sportsbiz #NBA
Q: What do you think about the NBA approving advertisements on jerseys for 2017-18? Mark Cuban: “I’m fine with them. Look, we put memorials on jerseys all the time that are just gonna be a little bit smaller than an ad would be and nobody says ‘oh that’s terrible, that distracts from the jersey’ when you’ve got someone who died or did something special. I don’t think it’s gonna change all that much.”
Sports Business Journal reports Monday that it's unclear how much revenue the NBA will bring in from jersey ads -- which it describes as "smaller than a standard Post-it note" -- but Brett Yormark believes the Nets could rake in between $4 million and $6 million a year from what he calls "naming rights for your team."
Teams will keep 50 percent of the revenue generated by their individual patch sales, with the remaining 50 percent being shared equally among the league’s 30 teams. The Knicks could get as much as $10 million, SBJ predicts.
