It is all about the money.
Last month, the NBA’s board of governors approved a three-year pilot program that allows teams to sell a corporate logo on their jerseys, ESPN Sports Business writer Darren Rovell reports.
This program, with an estimated value of $100 million annually according to NBA commissioner Adam Silver, will go in effect after next season during the 2018 NBA season. That is when Nike will take over adidas as the supplier of the NBA uniforms, having the famous swoosh on game jerseys.
The significance of this is the NBA becomes the first of the four major U.S. sports leagues (NFL, MLB, NBA, NHL) to put ads on its regular gameday jerseys. MLS and WNBA already do so, but it has not crept into the traditional American sports.
People can be hesitant when it comes to change and resist it at first, especially when seeing something completely different to what they are used too. A worry could be they do not want their favorite NBA team’s jerseys disguised with large advertisements making them look similar to soccer jerseys (it should be noted, the advertisements will not be included in jerseys for retail).
Traditional fans will be happy to know the corporate sponsor logos will only be a 2.5-inch-by-2.5-inch patch on the corner of the jersey. So it is not too bad or intrusive, and will barely be noticed to the naked eye.
Can you imagine a small Mickey Mouse on the corner of the Orlando Magic’s jersey? Or the Amway logo, the company co-founded my Magic owner Rich DeVos?
These are possibilities should the team opt to sell the space and be part of the pilot program.
If you are curious about how the Disney logo would look on the Magic jersey, Reddit artist user TheGreatImperialist made theoretical images for each NBA team, recently published by a Sports Illustrated article.
Well, that soon could be a reality.
Last week, almost exactly one month of the NBA announcing the jersey ads program, the Philadelphia 76ers are already being proactive and getting a jump start on its competition by securing a sponsor.
Philadelphia 76ers announce they will wear a StubHub patch on their in-game jerseys
More: https://t.co/a9fldQuqRi pic.twitter.com/gIYJCoo87y
— Chris Creamer (@sportslogosnet) May 16, 2016
“We are about being first, being different, being innovative and getting to market at quickly as we can,” 76ers CEO Scott O’Neil said.
“This is strategic beachhead property for us. We want to be more a part of the emotional experience fans have with their teams, and we think a deal like this gets us closer,” StubHub CEO Scott Cutler said.
The reported deal is valued at $5 million per year for three seasons, according to a report from ESPN.com.
This could be a game changer, as it provides sports teams with an additional source of revenue.
With the NBA selling sponsorships on jerseys, this benefits the teams, the league in general and its players as well.
“NBA teams will keep half of the money generated by selling sponsorships on jerseys, and that half will be further split in two, with one portion going to the individual team that does the deal and the other going to a revenue-sharing pool. The half that does not go to the teams will be split with the players and will contribute to a rising salary cap”, according to ESPN writer Darren Rovell.
Basically, everyone wins. Well, maybe except the fans.
On the bright side, if you are not a fan of ads being on your Orlando Magic’s jerseys then you are in luck. The NBA jerseys that are sold nationwide will not have the corporate sponsor logo.
But if you are interested in the new jersey, you may be able to purchase it as NBA teams will have the option of selling the jersey with the sponsor logo, according to Darren Rovell of ESPN.com.
What does this mean for the NBA moving forward?
Global and national marketing opportunities, which helps not only the company sponsor, but the basketball team too. Companies can be associated and have a partnership with a NBA franchise on and off the court.
For example, StubHub, which is known as a ticket resale company, will now be the 76ers official primary and resale partner of the team, Rovell writes.
Let’s say the Walt Disney Company decides to have a sponsorship with the Orlando Magic. When you are at Disney World in the souvenir shop, you might see Magic merchandise available and maybe even Orlando Magic themed Disney items too. That’s cool right? Disney is already a Corporate Champion partner and sponsor of the Magic. Many of these opportunities already exist.
With all that being said, NBA ads on jerseys could be a temporary thing since it is only a three-year pilot program. Even the NBA commissioner is not completely sold on this idea, having said there is “enormous uncertainty” of the patch program, according to ESPN writer Darren Rovell.
Who knows what the future of company sponsorships with NBA teams is. Will have to see what happens over the next several years.
Orlando Predators no longer the top dogs
The Orlando Predators are doing something somewhat unfamiliar this week — preparing for a game after a loss.
The Predators lost their first game, losing first place in the conference, Saturday against the Philadelphia Soul. The quick-passing offense neutralized the Predators’ ball-hawking cornerbacks.
Orlando is trying to find a way to bounce back after losing control over the conference and that top seed for the playoffs.
The Predators will play the Jacksonville Sharks on Friday at 7:30 p.m. at Amway Center.
UCF welcomes graduate transfer
UCF announced it has accepted the transfer of Illinois State forward Nick Banyard. The 6-foot-8 forward is immediately eligible to play.
Banyard averaged 5.2 points and 4.3 rebounds per game last season for the Redbirds, playing 19.9 minutes per game.
“Nick brings a lot of experience to our program and is able to help us out right away with being a graduate transfer,” UCF coach Johnny Dawkins said in a press release. “He has good size and athleticism as a stretch four, which will allow us to spread the floor.”
Banyard should be a solid role player adding more depth and versatility to UCF’s roster next year.
