NBA to Become First U.S. Sports League to Feature Sponsor’s Logo on Jerseys
October 29, 2015
The National Basketball Association (NBA) will become the first professional U.S. sports league to feature advertising on its jerseys, according to the Wall Street Journal.
The league is reported to have agreed a deal with car manufacturer and existing partner KIA Motors to have its logo on the 2016 and 2017 All-Star jerseys.
The logo will also appear on all-star jerseys for fans to purchase.
Sponsor logos are prominent on the jerseys of European football clubs but is yet to find its way into American sports, with the NBA now ready to take the first steps.
The report in the Wall Street Journal says the NBA arrangement was brokered between the league and Turner Sports, the broadcast rights holder to the All-Star Game.
Speaking to iSportconnect, Misha Sher, Head of Sport EMEA at global media agency Mediacom, isn’t surprised by the news and feels there was a level of inevitability about it.
“This news should come as no surprise and most definitely first the first step before we start seeing all teams in the league featuring sponsors on their jerseys,” he said. “The only surprise is why, in a country where fans are so accustomed to commercialization of their professional sports, it took this long to introduce.
“American sports leagues are notorious for their ability to monetize every aspect of their operation and will have seen this as an area that could drive substantial income. It’s perhaps the most coveted ‘real estate’ in what is increasingly a global marketplace.
“Shirt sponsorships in NBA will run in the tens of millions. Introducing it at the All-Star game makes it easier to roll out across the league, but again, I don’t foresee much opposition from American fans. There is an acceptance now that top professional teams are global entertainment properties rather than teams rooted in local communities.
“We may not like it but this has been a trend for a while and will almost certainly continue.”
Also speaking to iSportconnect, Sponsorship and Marketing Consultant Nigel Currie believes the revenue stream European football clubs generate has become attractive and is beginning to appeal to the U.S. sports market.
“This is a very interesting and significant development brought about by the escalating values of major sports teams (mainly football) in Europe,” he said.
“However, the agreement by-passes the team owners as it is directly between the sponsor, Kia Motors and Turner Sports who have the broadcast rights. Historically the money paid by broadcasters in the US for major sports rights has been so large that it totally negated the need for shirt sponsorships.
“Based on the revenues from shirt sponsorship deals in other countries, it was not financially worthwhile trying to open up this particular revenue stream. However, what we have seen in the UK and other European markets has been a massive escalation in the value of shirt sponsorship deals in the last few years.
“Because of this the revenue stream has become extremely attractive and is clearly now proving very interesting and appealing to the US market.”
{jcomments on}