On May 19, 2021, Stephen Curry #30 of the Golden State Warriors drives to the basket against the Los Angeles Lakers at STAPLES Center in Los Angeles, California, during the 2021 NBA Play-In Tournament. Getty Images | Adam Pantozzi | National Basketball Association According to projections from IEG, a sports partnerships consultancy organization, the NBA made a record $1.46 billion in sponsorship revenue in the 2020-21 regular season. According to IEG, the sum is up 6% year over year, and is higher than the $1.2 billion the NBA earned through partnerships following the 2018-19 season. IEG keeps track of sponsorship spending in professional sports leagues, including the NFL. It is owned by Bruin Sports Capital, an investment business created by George Pyne, a well-known sports executive and former NASCAR chief operating officer. During the NBA’s 72-game season, the league signed 13 new contracts, including one with Microsoft. The IT industry assisted the league in bringing in approximately $115 million in new spending each year. According to IEG, NBA sponsorships cost more than $100 million per year in the tech, lottery, gaming, telecommunications, and banking areas. In a statement, Peter Laatz, IEG global managing director, also mentioned the NBA’s sponsorship relationships with the NFL. Deals for the NFL’s 2017 season brought in $1.62 billion. “The NBA’s star power, quantity of games, diversity of sponsorable assets, and global popularity all contribute to the league’s sustained expansion,” Laatz noted. NBA jersey patch deals are estimated by IEG. “Total sponsorship revenue for the NBA and its teams has increased by about 70% since the last season (2016-2017), prior to the introduction of that sponsorship asset.” On May 22, 2021 in New York City, James Harden #13 of the Brooklyn Nets defends the ball against the Boston Celtics in Game One of the First Round of the 2021 NBA Playoffs at Barclays Center. Getty Images/Steven Ryan During the season, teams like the Brooklyn Nets signed additional patch deals, raising the total number of NBA teams having patch deals to 27. Motorola is the only company that has more than one patch. The Nets, Milwaukee Bucks, and Indiana Pacers have all signed contracts with the organization. “Some clubs collect more than $15 million each year for jersey patches,” Laatz explained, “which is close to the $30 million a naming rights sponsorship can bring in annually.” For NBA sponsorships, companies choose spots in the insurance, retail, and alcohol industries. According to IEG, each of the groups contains about 70 transactions. State Farm and Verizon are two of the league’s “most involved brands,” with each business having more than 20 partnerships with the league and its teams. During the season, Verizon also added 12 additional deals. The NBA season is coming to an end, and teams are vying for conference titles in the playoffs. The NBA Finals are set to begin on July 8. Continue reading
