NBA fans were disappointed when the league first announced that jerseys will come with advertisements. However, it has turned out to be a lucrative endeavor, as the NBA’s jersey patch program has earned the league more than $150 million.
The Golden State Warriors have one of the biggest revenues from jersey advertisements. The deal between the team and Rakuten is worth $20 million. Additionally, the Celtics have a deal with General Electric worth more than $7 million. These amounts are considered a lot.
The money is considered basketball-related income and is split among players through the collective bargaining agreement.
$150 million may not seem like a lot when considering the league takes in $7 billion a year, but the small revenue could add hundreds of thousands of dollars to team salary caps which could be the difference-maker in acquiring players.
The jersey patch was highly unpopular with fans, who suggested that jerseys had their sacred nature and should not be tampered with. Nevertheless, the league went forward with the program because any profit is good for the league.
The payout may seem too easy for the league. The minimal amount of work that goes into jersey patches is far too little compared to the payout of $150 million. Therefore, the league will continue with the program.
For now, the NBA jersey patch program seems to be working without much overhead.