NBA Rumors: Game Association Approves Jersey Sponsorship in 2016-17 Season

By Jenn Loro - 17 Apr '16 07:52AM

After years of discussion, NBA Board of Governors unanimously approved the measure allowing teams to sell advertising sponsorships on basketball jersey shirts in a lucrative commercial option that is expected to generate a revenue stream to an estimated $150 million every year for the league.

The basketball clubs can now place 2.5in (6.3cm) square advert featuring a sponsor's logo. This marks the first time the league exploited on this profitable commercial option that has long been a staple in other sports. With advertising placements on uniforms, deals could bring around $4 million yearly for the franchises.

"Jersey sponsorships provide deeper engagement with partners looking to build a unique association with our teams and the additional investment will help grow the game in exciting new ways," said NBA Commissioner Adam Silver in an official statement as quoted in the official NBA website.

"We're always thinking about innovative ways the NBA can remain competitive in a global marketplace, and we are excited to see the results of this three-year trial."

The recent change in NBA's official policy has drawn huge precedents from highly successful sponsorship deals seen in European sports league like the Champions League and English Premier League. Advertising options on uniforms have become a commonplace elsewhere making it an inevitable commercial path for the league and the teams.

"It just creates that much more of an opportunity for our marketing partners to get that much closer to our fans and to our players," remarked Michael McCarthy of Advertising Age as quoted by Bleacher Report.

"It gives us an opportunity just to have deeper integration when it comes to those forms of sponsorship. ... Increasingly as we see Champions League and English Premier League televised in the U.S., I think it's going to become more acceptable and more commonplace for our fans as well."

Globally speaking, company sponsorship has become a major and steady source of sports income. Recent figures from Price Waterhouse Coopers reveal that global sport sponsorship revenue was roughly worth $45.3bn last year, BBC News reported.