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 is coming to the Golden State Warriors.
It was reported that the deal is worth double the amount of the Cleveland Cavaliers’ deal with Goodyear.
Photo credit: The Mercury News
Japanese e-commerce company Rakuten will pay Golden State $20 million annually, totaling up to $60 million over 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 are 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 parties agreed on a deal where the Lakers will receive around $12 million to $14 million per year for three years. It was reported that Jeanie Buss, the CEO of the Lakers, had 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 have struck a deal with Goodyear 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 Ultimate Software, a Florida-based company. To sweeten the deal for Ultimate Software, the company will also serve as the official human resources 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 Flagstar Bank will sponsor Detroit Pistons 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. StubHub and the Philadelphia Sixers worked out a $5 million deal. Blue Diamond Almonds and $5 million 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.
This coming season marks the start of sponsored teams’ jerseys 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 soon find out.
