The Unique Group (www.TheUniqueGroup.com), a company offering one-stop brand packaging solutions, is weighing in on the NBA approving ads on team jerseys.National Basketball Association Commissioner Adam Silver has approved a three-year trial for the display of ads on the front of NBA team jerseys. The move makes the NBA the first of the major North American sports leagues to allow for this type of promotion. (Source: “NBA approves ads on jerseys,” CBC web site, April 16, 2016; http://www.cbc.ca/sports/basketball/nba/nba-advertising-on-jerseys-1.3537440.)
“It’s essentially a revenue play,” says Asher Lichtman, VP Sales and Marketing at The Unique Group. “Allowing teams to individually sell space on their jerseys has huge earning potential, both for the teams and for the league itself. I’m sure owners were excited when the commissioner announced he would be allowing a trial period.”
The trial will begin at the start of the 2017–2018 season. The patch will be placed on the top left of each team jersey and measure 2 ½ by 2 ½ inches. Teams will be responsible for selling their own space, with Silver anticipating yearly earnings to potentially be in the range $100.0 million.
“That’s massive additional income for doing something that doesn’t negatively impact the game, so it’s a smart move” Lichtman adds. “Major League Soccer (MLS) already incorporate logos on its teams jerseys, and of course the Union of European Football Associations (UEFA) has done this for years.”
Lichtman points out that the teams, as well as the association need to pay special attention to the brands they choose to advertise. They will have to be diligent in promoting wholesome products that hold similar values and brand images as those of teams and the association.
“Hopefully the ads will encourage deeper engagement in the game, with sponsors having added interest, and that the additional revenue will give the NBA a chance to expand its brand,” Lichtman concludes. “This move may be experimental, but it still has high expectations and can help the league continue to compete globally.”
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