Sold: StubHub scoops up first NBA jersey ad
May 16, 2016
The NBA’s first official jersey sponsorship has been sold.
Last month the pro basketball league said it would allow teams to sell 2.5-by-2.5-inch ads on jerseys for the 2017-18 season, and the Philadelphia 76ers are the first team to make a sale, striking a three-year deal with online ticket exchange StubHub worth a reported $5 million per season.
The NBA allows teams to sell ads to any company that’s not affiliated with gambling, alcohol or politics. It has also granted “protected” status to a handful of league-wide sponsors to make sure ads from competitors don’t show up on team jerseys.
Companies with protected status include media rights holders ESPN, ABC and Turner, apparel provider Nike (beginning with the 2017-18 season), official timekeeper Tissot and official ball manufacturer Spalding.
The teams don’t actually get all of the revenue generated from jersey sponsorships. Teams get one quarter of the money generated, while another quarter goes to a revenue-sharing pool and half goes to players.
Jerseys sold to fans nationally won’t include the ad patches, but teams can opt to sell jerseys with ad logos at team-owned locations. The 76ers have already said they’ll sell jerseys that include the StubHub logo.
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