The inevitable has became material in the National Basketball Association, as the Philadelphia 76ers became the first team to sell advertising space on player jerseys in the “Big 4” professional sports leagues (Major League Baseball, NBA, National Football League and National Hockey League) in Canada and the United States of America.
Darren Rovell reported Monday morning that the 76ers are part of the NBA’s three-year pilot program for jersey ads, and the ads will appear on Philadelphia’s jerseys beginning in the 2017-18 season.
Sixers sell first corporate spot on NBA jersey to StubHub. Source says it’s for $5M a year for three years https://t.co/p3gGWUJv7P
— Darren Rovell (@darrenrovell) May 16, 2016
Philadelphia 76ers First to Sell Jersey Real Estate
The company who purchased the ad is Stubhub, who will pay $5 million per year for three years in exchange for the 76ers wearing the jerseys bearing the patch. The contract includes an option to extend the deal, but that will be subject to the league allowing jersey ads to continue to be sold past the three-year pilot window.
That annual $5 million won’t be clear profit for Philadelphia, however. Of that revenue, $1.25 million per year will be used to contribute to the rising salary cap and go to the players. The situation gets a little more interesting when talking about sales of the jerseys featuring the ad.
Jerseys available on NBA.com and other nationwide outlets will not feature the ad. Only those sold at team locations will feature the Stubhub ad on them.
While the 76ers may be the first, it’s likely that they won’t be the only NBA team to sell jersey advertising space during the three-year pilot program. It’s possible that buying advertising space on jerseys may just be part of a bigger deal between teams and corporate sponsors, as the contract between Philadelphia and Stubhub is. Stubhub has also became the official primary and resale ticket partner of the 76ers.
It’s also likely that other leagues will be watching how the NBA’s pilot program with jersey ads works, and success for the NBA would beget similar programs in MLB, the NFL and NHL.
In professional sports, the rule has always been, is now and will always be that if if it makes cents, it makes sense.
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