Many exciting things are happening in the NBA right now. The Oklahoma City Thunder have just managed to beat the San Antonio Spurs in a grueling series, the Miami Heat and the Toronto Raptors are deadlocked at 3 wins apiece going to Game 7, and Stephen Curry has not only won back-to-back MVPs, but is the first player to do so by unanimously winning the MVP vote.
However, one of the most fascinating stories in the NBA is not happening on the court, but within the confines of lush mansions made of solid gold, full of old men bathing in cash with an insatiable desire for more. Perhaps the former isn’t true, but the same can’t be said for the latter.
The NBA Board of Governors, made up of the owners of each team, men worth at least hundreds of millions, if not billions of dollars, approved a deal last month to allow teams to start selling a 2.5-inch-by-2.5-inch patch on the top, front left side of NBA jerseys for advertisements and sponsorships. It’s not hard to see why this deal was approved. Fifty percent of the money from the ads will go directly to the individual teams themselves, and the other half will go into a revenue-sharing pool that greatly benefits low-revenue teams. It’s a win-win for owners and teams because its just another way to make money. But what does this decision mean for the fans?
The Good
Although there’s been heavy backlash against this decision, the NBA is being extremely cautious in implementing it. The NBA has already tried out the advertisements on jerseys during the 2016 All-Star Game with minimal uproar. In addition, the changes won’t take place until the 2017-2018 season. This gives fans another year to accept the inevitability of the expanding commercialization of one of the most profitable sports leagues in the world.
Stephen Curry at the 2016 All Star Game with the first NBA advertisements
Furthermore, the NBA is running this as a pilot program lasting only three years to see how well-received the advertisements are. Perhaps most importantly, NBA teams will still be allowed to sell untainted jerseys, free of advertisements during these three years.
The Bad
One of the biggest arguments for the advertisements on jerseys is the success that soccer has had with them. Soccer is the most popular sport in the world, and uniform sales haven’t been affected by the ads.
However, there are major flaws with this argument. First, advertising money makes up a significant portion of revenue for soccer clubs. Advertising for Manchester United alone is estimated to make around $200 million per year. Compare this to the $100 million that NBA commissioner Adam Silver estimates, split across 30 teams, then cut in half again due to the revenue sharing, and NBA teams are set to make about $1.67 million at the very least, if advertisers are willing to pay equally for each team, which they will likely not. Considering the NBA’s overall revenue is projected to be about $7 billion in the 2017-1018 season, and the $100 million is chump change, only about 1.4 percent of total revenue. Soccer also doesn’t contain any broadcasting advertisements during the game, while the NBA has radio and TV commercials during every timeout, so soccer sponsorships and advertisements are more important revenue-wise.
The Ugly
Perhaps the most frightening thought for an NBA fan is the realization that these small, 2.5 inch squares of corporate logo is only the beginning; it is the small crack in the dam that may very well lead to a flood. Once these small patches of advertising become mainstream among the NBA, what’s to stop from expanding and looking like this? Soccer, the epitome of uniform advertisements, has its own team logos relegated to a small corner, similar to the 2.5 square inch patch that the NBA has approved, but reversed. Instead of the team shining bright in all its glory with a small piece of advertising, corporate logos flood the jersey and are the face of the jersey, with a small piece of team logo.
Wayne Rooney in his jersey prominently showcasing the Chevrolet logo
This certainly isn’t the end of the world for NBA fans. But it’s not a good sign for those who like the simplicity and elegance of the NBA jersey right now. But there isn’t much fans can do at this point. As Commissioner Silver put it, “It’s manifest destiny,” and the NBA won’t stop until it’s conquered every possible form of revenue.
