The NBA has found a new way to generate more revenue.
This 2017 - 2018 season will be the first year of a three-year trial as NBA teams are teaming up with different businesses and will feature the company’s logo on its team jerseys. There are a total of 16 teams partnered with companies and the team with the biggest payday coming to the Golden State Warriors.
It was reported that the deal is worth double the amount of the Cleveland Cavalier’s deal with Goodyear.
Japanese e-commerce company Rakuten will pay Golden State $20 million annually that will total up to $60 million for three years. Rakuten will reap more benefits than just having its logo on the reigning NBA Champions jerseys. Rakuten will now be the official e-commerce partner for the Warriors as well as an affiliate marketing partner, in addition to Golden State renaming its practice facility to Rakuten Performance Center.
The Los Angeles Lakers is the latest team to land a deal and it’s the second largest deal in the league. San Francisco based mobile shopping app Wish, reached out to the Lakers and the two agreed on a deal where the Lakers will make around $12 million to $14 million a year for three years. It was reported that the CEO Jeanie Buss of the Lakers never heard of the company before making this deal.
LeBron James and company will be sporting the Goodyear logo on their jerseys. The Cleveland Cavaliers struck a deal with Goodyear that is worth $5-10 million annually. Goodyear is based in Akron Ohio.
The Miami Heat was the 15th team to gain a sponsorship. Miami has partnered with Weston, a Florida based company Ultimate Software. To sweeten the deal for Ultimate Software, the company will also be the official human resource and payroll provider for the team.
Other teams that gained sponsorships are: the Atlanta Hawks partnered with Sharecare for a deal worth $2.5 - 5 million annually, Boston Celtics and General Electric agreed on more than $7 million a year, Brooklyn Nets and the company “Infor” will be partnered for $8 million a year, Western Union Bank will sponsor the Denver Nuggets for $5 - 10 million a year, and Detroit Pistons will be sponsored by Flagstar Bank for $5 - 10 million a year. Milwaukee Bucks and Harley Davidson agreed on a $2.5 - 6 million deal, Minnesota Timberwolves and Fitbit agreed on $3 - $8 million annually.
The Orlando Magic will get a little more magical teaming up with ESPN’s parent company Disney for a $5 - 10 million deal. Stub Hub and Philadelphia Sixers worked out a $5 million dollar deal. Blue Diamond Almonds and $5 million with the Sacramento Kings, Sun Life and Toronto Raptors’ deal is worth $5 million a year and the Utah Jazz’s deal with Qualtrics is worth $4 million.
So this coming season is the start of sponsored team’s jersey throughout the NBA. In a short while we will have all the teams enjoying what is now the new “corporate stadium sponsors” money. Will this stop at one sponsor on a jersey or will they continue to grow to maybe five sponsors on a team’s jersey. Well, we will so find out.
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