NBA Patches Up

Company logos on NBA jerseys!? Has the NBA gone crazy?!  Adam Silver, the N.B.A.’s deputy commissioner, said “If we add sponsor logos to jerseys, we recognize that some of our fans will think we’ve lost our minds. But the N.B.A. is a global business and logos on jerseys are well established in other sports and commonplace outside the U.S.”

Once we accept the fact that there will be company sponsorships on our most favorite player’s jerseys, we have to ask, where will it be? When will it be added? What companies will be on the jerseys and how much would a sponsorship cost?

One idea would be that the team name on the jersey would be taken away and replaced by a corporate name. Another idea would have a company name beneath the uniform number, but the most popular choice is with the corporation’s logo on the jersey strap.

NBA owners were briefed on the finances of deals between English Premier League soccer teams and jersey sponsors to get an understanding. A four-year $120-million sponsorship between Manchester United and Aon includes the right to put the global financial services firm’s name on the club’s jerseys.

Each NBA team would have a $30 million sponsorship for patches that would be 2.5 inches by 2.5 inches.  The NBA tested it out during the 2012 NBA Finals with the Miami Heat and Oklahoma City Thunder wearing 2.5×2.5 inch NBA Finals patches on their jersey to see how the audience and players would respond.  People loved the idea and did not mind it at all that the players were having a patch on their jersey, but no one knows how they will react when another company such as Samsung or LG will be patched on to players like Kobe Bryant or LeBron James.

Revenue is not the only cause for the NBA to take on these sponsorships.

“Job applications in India have doubled and tripled because of our sponsorship, and traffic to our Web site jumps 500 percent on match days.” said David Prosperi, a spokesman for Aon.

By collecting vast amount of revenue, creating jobs for companies which could boost the economy and higher popularity to their websites are big pros for putting these ads on NBA jerseys.

Possibly going to be added in the 2014 season, there are still negotiations about this subject and no final decisions have been made.