NBA: Creative Jersey Advertising

The combination of marketing, innovation, and a creative approach is essential to drive the growth and relevance of a brand in today's competitive world. In this article highlighted how the NBA has broken new ground by introducing advertising on game jerseys.

The introduction of jersey patches represents a significant innovation in sports marketing. Over half of the NBA teams have signed deals to place patches on their jerseys, showcasing the league's creative approach to maximizing the value of their inventory and generating additional revenue.

The NBA is breaking new ground this season by introducing advertising on game jerseys. According to an industry expert involved in the program, over half of the league's 30 teams have signed deals, averaging $9.3 million per year. Wasserman, a company that evaluated deals for 15 NBA teams, including the Golden State Warriors' record-breaking $20 million yearly deal with Rakuten, found that the average value of jersey patch deals aligns with the initial forecast of $9 million. The sale of these high-priced patches has been a challenging task, given the unfamiliarity and high valuations involved. Therefore, the league gave teams 18 months to sell the patches. Some big-market teams, such as the Chicago Bulls, Los Angeles Clippers, and Houston Rockets, have yet to secure jersey patch deals as they continue to search for suitable partners at the right price.

The article also noted that selling these advertising spaces has been a unique challenge due to the unfamiliarity with this approach in major US sports leagues. However, the NBA has allowed teams sufficient time to find the right partner and negotiate agreements that strengthen the team's brand.

Brett Yormark, CEO of Brooklyn Sports & Entertainment, which owns the Nets, emphasized that selling the jersey patches requires a different approach due to its unique nature and larger significance. It goes beyond mere signage and branding and involves a deeper connection between the team and the brand. The Nets, for instance, secured an $8 million per year deal with software company Infor, which includes the development of analytics to measure player performance, business operations, and fan experience.

The partnership between teams and brands has become an opportunity for innovation in marketing. Jersey patch deals go beyond brand exposure and involve deeper partnerships that may include analytics development, enhanced fan experiences, and emotional connections with the community.

The implementation of jersey patches will begin in the 2017-18 season, while apron signage will start this season. The league expects about two-thirds of NBA teams to have jersey patch deals in place this season, with 17 teams already on board and more expected to join soon. While the brands involved in these deals range from tech companies like Fitbit with the Minnesota Timberwolves to traditional companies like Goodyear with the Cleveland Cavaliers, most of the jersey patch deals are with companies that were previously not NBA sponsors. The Utah Jazz stands out as the only team with a cause-related patch deal, partnering with analytics company Qualtrics to feature their 5 For Fighting cancer charity logo on the jersey. Qualtrics will also provide fan experience data as the team's exclusive insights and analytics partner.

This innovative and creative approach to marketing has allowed NBA teams to establish new ways of engaging with fans and generating additional revenue to support brand growth. Furthermore, the diversity of brands involved in jersey patch deals demonstrates how the creative approach has attracted companies from different industries, both traditional and technological, to partner with NBA teams.

Amy Brooks, EVP of the NBA's team marketing and business operations division, highlighted the uniqueness of the companies involved, showcasing the broad appeal of the jersey patch program. She stated that the majority of these brands are locally based but have a global reach. Teams without jersey patch deals will still have the opportunity to sign them during the season.

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The inclusion of additional team assets in jersey sponsorships makes selling patches more complex. For instance, the Golden State Warriors' agreement with Rakuten grants naming rights to their practice facility, and the Los Angeles Lakers' deal with Wish involves a patch on their G League team jersey. The league has a separate process to determine the value of these patch deals, with 50% of the revenue going to players, 25% to the selling team, and the remaining 25% shared among the other 29 teams.

The Charlotte Hornets face the challenge of finding a jersey patch partner that aligns with the Jordan Brand logo, which will also appear on their jerseys. They have received multiple offers but haven't made a decision yet. The market for jersey patches is continuously evolving and expanding.

The article also provides a list of NBA teams and their respective jersey patch sponsors for the 2017-18 season, including the Atlanta Hawks with Sharecare, Boston Celtics with GE, Brooklyn Nets with Infor, Cleveland Cavaliers with Goodyear, and others.

In summary, sports marketing has undergone significant transformation through the NBA's innovation and creative approach in introducing jersey patches. This strategy has generated growth for the teams and enabled the establishment of valuable partnerships with brands from various industries. It serves as an example of how innovation and a creative approach can drive success and brand growth in any industry.