NBA Sponsorship Revenue: 8% Rise & Jersey Patch Impact
NBA Sponsorship Revenue Jumps, Driven by Jersey Patches and New Arenas
NBA teams have seen a critically important boost in revenue, with sponsorship deals totaling $1.62 billion this season. According to SponsorUnited, this represents an 8% increase from last year and a 91% surge over the past five years.The rise in NBA marketing partnerships is attributed to larger, more strategic deals.
Bob Lynch, founder and CEO of SponsorUnited, highlighted the impact of sponsor patches on team jerseys. Since thier introduction in 2017, these deals have more than doubled, with six new NBA jersey partners contributing over $80 million this year.These partnerships typically span three years.
The opening of the Los Angeles Clippers’ Intuit Dome also played a role in driving up overall sponsorship revenue. Lynch noted that new stadiums and expansion teams significantly boost league revenue.
This season saw 450 brands entering NBA sponsorships for the first time, with notable growth from the construction, alcohol, and technology sectors. Rakuten and JPMorgan Chase lead as the top-spending brands in the league.
The sponsorship increase follows the league’s $77 billion media rights deal, which will offer games across Disney’s ESPN, Comcast’s NBC and Peacock, and Amazon’s Prime video starting next season.
individual star players also play a crucial role in attracting endorsements, often serving as a gateway for brands to partner with teams. Lynch noted that players are increasingly becoming brands themselves,with numerous sponsorship deals.
“What we’re seeing is that players are almost becoming teams themselves in the number of sponsorship deals they have,” said Lynch.
Jared McCain of the Philadelphia 76ers signed a record 30 endorsement deals this season. Other top-endorsed players include Karl-Anthony Towns,Josh Hart,and Jalen Brunson of the New York Knicks,as well as Stephen Curry of the Golden State Warriors.
Curry’s business trajectory changed significantly after signing with Under Armour in 2013. The Golden State Warriors, along with the Dallas Cowboys and Los Angeles Dodgers, are on track to reach $200 million in annual sponsorship deals.
What’s next
Looking ahead, the NBA is poised for continued growth in sponsorship revenue, driven by innovative partnerships and the increasing influence of star players. The league’s focus on streaming and broader broadcast TV reach will likely attract even more brands seeking to connect with its global audience.