In preparation for the likely influx of advertisers wanting to use NBA uniforms as billboard space, the Golden State Warriors will charge $15-20 million per year for companies to advertise on their jerseys, according to Darren Rovell of ESPN.
For that price, companies would get small advertising patches, measuring 2.5-inches by 2.5-inches, as part of the new 3-year pilot program recently approved by the NBA to start adding to their advertising revenue.
The only team to strike a deal of this kind so far is the Philadelphia 76ers. They are receiving $5 million per year from StubHub.
According to a recent ESPN article, “The Warriors are making a case to companies that star power — which now includes Kevin Durant
— combined with their huge market and local television ratings make the high cost of doing business worth it.”
The disparity in price between the deal the 76ers have already made and the price the Warriors are asking for has everything to do with the amount of exposure each team gets. Going forward, all deals of this kind will have everything to do with how well represented the teams are.
Also, the deals will have to take into account many factors, such as which players will be with which teams (in the Warriors case, it’s possible that neither Kevin Durant nor Stephen Curry will be with the team when the proposed deal begins), the amount of national TV coverage each team will get, which can vary from year to year, and what the actual value of the patch itself is. The ESPN article reports that the total money each advertising deal brings in will be split 50-50 between the team and the players.
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