Advertisements on jerseys are coming soon to an NBA stadium near you, and the Golden State Warriors are eager to capitalize.
ESPN’s Darren Rovell is reporting the Warriors are asking for between $15-20 million per year for the right to advertise on their jerseys beginning in the 2017-18 season.
It’s believed to be more than any other team is currently asking companies to pay, per Rovell. This is significantly more than what the deal the Philadelphia 76ers and StubHub reportedly agreed on ($5 million per year).
“The Warriors are making a case to companies that star power — which now includes Kevin Durant — combined with their huge market and local television ratings make the high cost of doing business worth it.”
Indeed, though the Warriors failed to repeat as NBA champions last month, they do feature the most star-studded lineup in the NBA right now. In addition to Durant coming on board, they will still feature the same cast of characters that set all kinds of records this past year. Stephen Curry, Draymond Green and Klay Thompson are all superstars, and Durant is one of the top players in the NBA as well.
That said, Rovell reports there are concerns by companies about doing big three-year deals with NBA teams. The chief among them is the fact that there isn’t much team loyalty any more, as Durant clearly illustrated.
“Sponsors have to have a player contingency put in these deals,” Eric Smallwood of Apex Marketing Group said.
Players aren’t signing long-term deals like they used to, especially now with the NBA salary cap increasing at a significant rate due to television money kicking into high gear.
For the Warriors, the likes of Curry and Durant could both be gone by the time the advertising goes into effect before the beginning of next season.
Still, regardless of the details that have yet to be ironed out, it’s clear that advertising on NBA uniforms is going to be big business very soon.