NBA teams don’t want to look like European soccer clubs, but they do want to maximize their advertising revenue.
If that means placing ads on uniforms, then that’s exactly what NBA teams will do.
The topic of jersey advertising was broached more than a year ago, but picked up steam in mid-January at a gathering of league presidents in Miami.
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According to league officials, teams will ideally begin selling space on uniforms — most likely a small patch on the front of the jersey — next season, with those ads appearing in time for 2014-15.
“(Manufacturing) guidelines are what they are, and we could probably work with them, but the people responsible for generating sponsor interest are telling us sponsors have their budgets set 12 months in advance,” NBA executive VP of global merchandising Sal LaRocca told SportsBusiness Journal.
“So if you’re looking to tap into incremental money, you’d better be planning more than 12 months out.”
Team executives reportedly are hoping to put the idea up for a vote at the league’s board of governors meeting in April.
According to the SBJ article, once a plan to sell jersey ads is in place, the league must devise a way to split revenue from the ad sales among the 30 teams.
A source told the magazine that league executives have yet to reach an agreement on how best to share the estimated $100 million in jersey ad revenue.
“The idea of pooling a percentage of proceeds among the league’s 30 teams, sources said, is one way the league is looking to offset the wide range in the value of jersey deals between high-revenue teams like the New York Knicks and Los Angeles Lakers and low-revenue teams such as the Memphis Grizzlies and Charlotte Bobcats,” according to the SBJ article.
Also discussed at the league’s sales and marketing meeting was the new partnership with NBATickets.com, operated by Ticketmaster. NBATickets.com offers primary and secondary tickets on one website.
Teams tracking more data
The Cavaliers are among the 15 teams subscribing to a new data-tracking system devised by STATS LLC that records every movement on the floor. That includes the movement of every player on the floor, as well as the officials and the ball.
The service is used to give details into everything from player tendencies to where shots rebound when they’re taken from certain spots.
Teams other than the Cavs subscribing to the service: Boston, Dallas, Golden State, Houston, Milwaukee, Minnesota, New York, Oklahoma City, Orlando, Philadelphia, Phoenix, San Antonio, Toronto and Washington.
Kings closer to move
The Sacramento Kings have formally filed paperwork to the league office in an effort to transfer ownership and relocate the team to Seattle, NBA commissioner David Stern said last week.
The Kings, currently owned by brothers Joe and Gavin Maloof, are in the process of being purchased by a Seattle group fronted by hedge-fund manager Chris Hansen and Microsoft executive Steve Ballmer.
League owners will vote on the sale (and relocation) at the board of governors meeting in April. Stern added, however, that Sacramento community leaders will have an opportunity to present a counter-proposal to keep the franchise in its current home.