NBA set to post record $1.46 billion in sponsorship revenue

A report from valuation consultancy firm IEG reveals that NBA added 13 new deals, including one with Microsoft, during its 2020-21 season.

The National Basketball Association (NBA) made a record $1.46 billion in sponsorship revenue in its 2020-21 regular season, 6% higher than last season from $1.2 billion according to estimates by IEG, a sports partnerships consultancy firm.

IEG tracks sponsorship spending throughout pro leagues, including the National Football League. e NBA saw 13 new deals during its 72-game campaign, including one with Tech giant Microsoft. The tech sector supported the league brings in roughly $115 million per year in new spending. IEG said tech categories, lottery, gaming, telecommunications, and banking pay more than $100 million annually for NBA sponsorships.

Peter Laatz, IEG global managing director, also noted the NBA is within the NFL in sponsorship deals. The NFL made $1.62 billion from deals for its pandemic season.

“The star power, the number of games, variety of sponsor-able assets, and global popularity of the NBA all contribute to the league’s continued growth.”

EG estimates NBA jersey patch deals total sponsorship revenue for the NBA and its teams have grown by nearly 70% since the last season (2016-2017) before that sponsorship asset was introduced.”Teams including the Brooklyn Nets added new agreements during the season, bringing the total to 27 NBA clubs with patch deals. Motorola is the only company with multiple patches. The company has contracts with the Nets, Milwaukee Bucks, and Indiana Pacers.

Companies favor insurance, retail, and alcohol slots for NBA sponsorships. IEG estimates each of those categories has roughly 70 deals each. State Farm and Verizon are among the “most involved brands” as each company has 20-plus agreements across the league and its teams. Also, Verizon added 12 new deals during the season.

NBA is now wrapping up its season as teams are competing for conference championships in the playoffs. NBA Finals are scheduled to start on July 8. It remains one of the biggest attractions for the North American market and, it is highly likely that with restrictions easing across the country, new sponsorships will come in for the next season. This season will also show the need for diversification among teams as the heavyweights did not go too far in the tournament.

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