The word is that the jersey advertisements were heavily discussed during the league’s negotiations for a new nine-year, $24 billion TV deal with TNT and ESPN that were hashed out during the spring and summer. The stations wanted the right to sell ads on the jerseys but the league did not want to hand over those kinds of potential dollars to another entity.
“Under the new TV deals, NBA teams maintain the rights to sell the jersey advertising, which has an estimated value ranging from around $800,000 for small-market teams like the Memphis Grizzlies to more than $10 million for large-market teams like the Los Angeles Lakers,” SBJ reports.[more]
The networks weren’t completely shut out of the new revenue stream. They will receive “certain spending guarantees related to those contracts” for corporate advertisements, according to SBJ. The way SBJ’s ace reporters hear it, if a national brand has a jersey deal and would have also had an ad buy on either of the two networks involved, a special deal would be made for that brand to buy TV advertising when the team is playing a nationally televised game.
“Specifics of the TV buy component have not been hammered out, but the level of spending required by a company sponsoring the jersey would depend on how much exposure the team has on national broadcasts,” SBJ reports.
The whole thing is still a little vague of how it will all work and exactly how much money will be changing hands. In addition, it isn’t totally clear where the advertisement will be placed though in the past the theory had been in a spot just above the heart. That’s where the ads seemed to be heading back in 2012, but the teams and networks couldn’t figure out how the revenue was going to be split and the whole shebang was tabled, the Journal reports.
But that kind of potential revenue can apparently only be ignored for so long. “The conversations will start as soon as someone buys a jersey,” one network executive told the Journal. “Until then, we don’t know exactly what it will look like.” What is clear, though, is that TNT will be able to sell ad space on the jerseys for the 2017 All-Star Game.
Whatever happens, though, don’t worry, basketball purists. The new ads won’t be going into effect right away, as the TV deals don’t kick in till 2017.