In the first
post in I-95 SportsBiz history, the proposition of sponsorship space being sold
on NBA jerseys will be under the intense scrutiny of the weekly Dollars &
Sense column where, well you guessed it, we examine whether the dollars make
sense.
With the NBA
Playoffs in full swing and many of our favorite teams knocked out long ago, we
can’t help but look ahead to next season.
Where are those marquee free agents that ESPN keeps talking about*
going to land? Are the Spurs really
going to be able to stay young for one more year? The Bobcats can’t really be that bad again,
can they? But one question that should
be engrained in your mind now is will there be sponsors on the front of my
favorite team’s jersey?
The Facts
The owners have
been looking into the idea of jersey sponsorships throughout the season, and
now more than ever it seems to be coming closer to reality. There are essentially three choices:
replacing the name, under the number, and on the jersey shoulder.
The money that
could be generated from jersey sponsors could potentially help the league
immensely. Although it is unclear as of
now how many teams stand to lose money this season, last season a reported 22
teams dipped into the dreaded red numbers.
Money is the clear-cut
motivating factor here. Many have spoken
of the jersey sponsorship models currently used in the WNBA and the EPL. The WNBA currently has a deal with Boost
Mobile that has 10 of the 12 teams in the league bear the Boost Mobile brand on
their uniforms. The deal has allowed the
league and its teams to see a little bit more stability**.
The EPL’s jersey
sponsorship deals are on a team by team basis.
According to Sports Business Journal, the top annual values are $32.6
million worn by Manchester United (Aon), Liverpool (Standard Chartered), and
Manchester City (Etihad Airways). Chelsea’s
deal with Samsung worth $22.5 million is good for fourth in the EPL. Even though these are widely regarded as some
of the strongest international brands, they are worth noting as a
point-of-reference.
Estimates for
NBA jersey sponsorships slot the value somewhere between middle of the EPL pack
and somewhere closer to the WNBA. It all
depends on which sponsorship placement is used.
Experts cited in Sports Business Journal place their estimated values
between $1 million and $20 million.
The Pros
A big pro for
the teams of the NBA is pretty clear and that is the sweet smell of "straight
cash, homie***". The obvious new
cash flow would be coming straight from the sponsorship deal. However, it is important to keep in mind an
indirect yet large chunk of change that could stem from a jersey deal:
merchandise. Avid fans always want to
keep up with the latest and greatest trends from their favorite team. Having the newest jersey is something that
many avid fans pride themselves on^.
A jersey sponsorship would change up that avid fan’s favorite team’s
jersey, therefore that fan is now on his/her way to the local sporting goods
store to don the team’s newest look.
There is also
one huge pro for sports marketers and that is cutting through the clutter with
these jersey sponsorships. Marketers
spend millions of dollars with teams for signage and category exclusive
rights. In this day and age of sport, it
has become increasingly hard as to not blur the lines of categories. It is tough for fans to recall team sponsors
because there’s so many. Fans see so
many signs that many have become immune to the sight and no longer internalize
what they see. Jersey sponsorships can
cut through the cluttered sponsorship place.
With essentially a few signatures^^, a brand can instantly
become the most visible of a team’s partners.
The Cons
The con is the
reason that we do not already see jersey sponsorships. The con is that tradition says no. Close your eyes for a second. Imagine Michael Jordan’s famous cross-over of
Byron Russell of the Utah Jazz in game 5 of the 1998 NBA Finals^^^. We can all picture it vividly. Now, at the moment when Jordan turns around after
following that famous follow-through, place some large and obnoxious logo on
the front. I know it’s hideous,
right? It’s exactly why the
traditionalists say no way.
The Sense
My senses say
that traditionalists may not be able to hold their ground much longer. I personally can’t decide where I stand on
the matter. I usually find myself
initially siding with tradition, but tradition only sells for a small
number of teams. I think that the NBA
should do one of two things, assuming that they do go in the jersey sponsorship
direction.
Option #1 – Make
the Adidas, the NBA’s jersey provider, logo visible on game jerseys. The logo is on all warm ups and fan purchased
jerseys. We see it in other sports, most
notably in the NFL who has a huge jersey deal with Nike. Fans are used to that and Adidas would put in
extra money to make their logo more visible during games.
Option #2 – Go all
out. If the NBA is going to do it, then
they should just do it. There is no use
in beating around the bush trying to sell the fans on false statements about
attempting to avoid over-commercialization.
They aren’t fooling anybody. Just
take the most money that is offered and move on. Fans will get used to it because they won’t
have another choice.
The NBA is
already trying to loosen up the fans by “experimenting” in the NBDL and throwing
quotes out in the media saying that jersey sponsorship is inevitable. As a fan, I say please make the decision, lay
it on us, and let us adjust yet I’m also wondering what a Celtics jersey would
look like with a corporate logo on it.
With the NBA becoming more of a global appeal, the jersey sponsorship could make sense because it would put them more on the international level with the EPL. From a sports marketer’s standpoint, I would jump on this as quickly as
possible and really elevate my brand to a new level by paving a new path.
The Final Verdict
The dollars make sense for sports marketers trying to elevate their brands. The dollars will only make sense for the NBA if they are straight forward with selling points to the fans and really use it as a platform to make the league a true global brand.
In the meantime,
I’m on my way to meet with Commissioner David Stern on my new proposal… Selling
ad space on the forehead of every player in the NBA.
Footnotes:
* – No that will
not be the last shot that I will be taking at ESPN. Don’t worry, there will be plenty more.
**– Stability relative
to the Women’s National Basketball Association of course.
***– That quote
has to be one of Randy Moss’s top 5 contributions to the sports world. Seriously.
^– Sheer observation
through the years. Nothing scientific.
^^– And a large
briefcase full of freshly printed, neatly wrapped United States dollars.
^^^– I was going
to say imagine Ron Artest making his way through the stands at the Palace at
Auburn Hills with a large and obnoxious logo on the front, but I figured it
didn’t hold a place in your heart that would instill anger toward over-commercialism.
@dmrosen7
The owners have
been looking into the idea of jersey sponsorships throughout the season, and
now more than ever it seems to be coming closer to reality. There are essentially three choices:
replacing the name, under the number, and on the jersey shoulder. 
The EPL’s jersey
sponsorship deals are on a team by team basis.
According to Sports Business Journal, the top annual values are $32.6
million worn by Manchester United (Aon), Liverpool (Standard Chartered), and
Manchester City (Etihad Airways). Chelsea’s
deal with Samsung worth $22.5 million is good for fourth in the EPL. Even though these are widely regarded as some
of the strongest international brands, they are worth noting as a
point-of-reference.
The Cons
Option #1 – Make
the Adidas, the NBA’s jersey provider, logo visible on game jerseys. The logo is on all warm ups and fan purchased
jerseys. We see it in other sports, most
notably in the NFL who has a huge jersey deal with Nike. Fans are used to that and Adidas would put in
extra money to make their logo more visible during games.