The 76ers signed a three-year, $15 million contract for jersey ads. The Kings will get the same amount, according to John Lombardo and Terry Lefton of Sports Business Journal.
We know it's not a lack of interest. Plenty of companies are salivating to get their logos on the jerseys of NBA players. So what is going on? The answer is complex. The biggest factor is market value. Teams' top marketing executives are under pressure to create value for something that doesn't have an established market -- at least not in the U.S. Their nightmare scenario would include rushing to make a deal before other teams sign more lucrative ones. In other words, no team wants to be sold short. So what happens? Teams are waiting and hoping the early deals develop a lucrative market. They're tentative even though it's understood the revenues will vary wildly.
At least one team, we're told, has spoken to player representatives and is seeking to offer the top players in a package that includes their endorsement with the patch deal. Another wants to make sure the patch isn't just a way to avoid advertising on local TV and is asking the uniform ad company to also buy ads on other media.
What's your opinion about the advertising patches that are going to be added to the uniforms next year? Paul Allen: "I'm a member of the committee that reviewed those things for the league. I think that additional revenue makes the league healthier. So the challenge for us, depending on the size of the market, is to sell those patches to somebody that's going to also well represent the team and those sorts of things. So I think you'll see that evolve over the next few years. You already see it in other sports, whether it's soccer or basketball in other places. So I think we'll all get very used to it quickly." You don't think it'll be weird to see an ad on a Blazers jersey? Paul Allen: "Well it's definitely going to be a change. But, again, I think additional revenues help teams and so we'll all get used to it in the end."
Yormark, the CEO of Brooklyn Sports and Entertainment, the Nets parent company, didn’t identify the brands nor give a timeline for when a deal could be done. According to Sports Business Journal, the Nets are seeking “high seven figures” from advertisers. The patch, which the NBA describes as Post-It note sized, won’t be worn until the 2017-18 season. There has been only one deal since April. between StubHub and the 76ers. And SBJ notes, the market for the patches is much smaller than the league and teams had projected.
The Emirates Group is in preliminary talks to sponsor jersey patches for a number of National Basketball Association teams, according to two people with knowledge of the discussions. Allowing advertising on uniforms is a new initiative for the NBA. People familiar with the league and team operations say the sponsorships are expected to generate $150 million in total revenue a year. The three-year pilot program starts in the 2017-18 season.
A deal with the NBA would allow Emirates to put its name on a 2.5-inch square patch on the left shoulder of the jerseys. It's not clear how many of the league's 30 teams the company is looking to sponsor. The Dubai-based aviation company flies to the following NBA cities: Boston, Dallas, Chicago, Houston, Los Angeles, New York, Orlando, San Francisco, Washington D.C. and Toronto. The NBA declined to comment. Emirates didn't immediately respond to a request for comment.
The Emirates bundle won't include LeBron James's Cleveland Cavaliers, according to people familiar with the discussions. The people asked to remain anonymous because the talks are not public.
Calvin Watkins: Rockets voted against this because teams have to share the money gained with each other. - RT: NBA on ESPN: Warriors asking $15-20 million a year for rights to advertise on jersey, most of any team. (via @darrenrovell)
It is believed that the Warriors, who won the title in 2015 but lost in the Finals to the Cleveland Cavaliers in seven games this year, are asking for more money than any other team. The NBA recently approved a three-year pilot program to allow teams to sell 2½-inch by 2½-inch patches on the upper left of the jersey opposite what will be a swoosh from Nike, which will begin its deal as the official apparel maker after the 2016-17 season.
Only one team has consummated a deal since the league allowed teams to start doing business in mid-May. The Philadelphia 76ers' three-year deal with StubHub is worth $5 million a year, according to sources.
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.”
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.
July 6, 2022 | 11:21 pm EDT Update
The Phoenix Suns today signed guard Devin Booker to a contract extension. “Devin has had a truly special impact on our organization, our fanbase and the Valley community since he first arrived in Phoenix,” said Managing Partner Robert Sarver. “We are grateful for all his contributions and we are thrilled to ensure that he will remain in a Phoenix Suns uniform into the future.”
“Devin, with his work ethic and commitment to excellence, has established himself as one of the league’s best players, elevating himself and our organization,” said General Manager James Jones. “We are beyond excited to extend the mutual commitment between Book, the Suns and the Phoenix community. He is just getting started.”
Michael Scotto: Sources: Bobby Portis has a 15 percent trade kicker in his four-year, $48.5 million deal with the Milwaukee Bucks, @hoopshype has learned. The deal also includes a player option on the fourth year of the deal.
Bobby Marks: The Tyus Jones contract in Memphis starts at $15M in the first year and declines to $14M in year 2. $1M in additional team performance bonuses Jones earned $8.4M in 2021-22 and will come close to doubling his salary for the upcoming season.
Tom Orsborn: Spotted Joe Wieskamp wearing a walking boot on his right foot while sitting near courtside at the Aces game. He said it isn’t anything serious. “I’ll be good,” he added. Will try to get a full report on Wieskamp from Mitch Johnson when Spurs practice Thursday.
Nick DePaula. Next month, @Damian_Lillard is launching “Formula Zero” in Portland, an annual invite-only elite skills camp & year-round mentorship for 20 top High School & 20 top College players. The camp will “provide the highest level of development both on & off the court,” says Lillard.