In the NBA, there is no such thing as too much revenue.
Per John Lombardo of Sports Business Journal, fans will be treated to additional means of branding leading into next season. This is a result of the league giving the go-ahead for teams to sell on-court advertising space:
NBA teams, seeing the push for lucrative jersey advertising shelved, are getting two new areas inside their arenas as sources of revenue starting next season: on the court and atop the backboards.
League officials have approved teams selling on-court advertising for the high-profile space in front of team benches as well as the camera-visible areas on top of the backboards.
A league source said no specific valuation has been assigned to the new sales areas, but multiyear, multimillion-dollar deals are expected, with teams signing package deals that would provide an advertiser with visibility in both places. One team executive said the deals could range anywhere from mid-six figures to around $2 million annually, acknowledging that the value of the signage will vary widely by market.
While it may seem insignificant in the grand scheme of things, this reported agreement is a good move in maintaining the fan-viewing experience.
The Association's approval of on-court and atop-the-backboard advertising beats seeing LeBron James, Kevin Durant and the rest of the NBA's superstars scurrying up and down the court with a company's logo etched onto their jerseys.
Advertisements can be eyesores, but if this is the alternative to franchises using their players as walking billboards, then so be it.
Not much is changing either. As Lombardo notes, these particular areas were restricted to team branding until now. There has always been some sort of visual endorsement in these spaces—they are simply getting a new look.
Elaborate product placement—now that would be taking it too far. Sneaker and jersey logos are already in play, but I'm talking about Kia placing an Optima under every rim.
That would be excessive. This is just an intelligible business decision.
What do you think of the NBA's latest revenue-driving methodology?
When teams make more money, the league makes more money. Lockouts and contract squabbles can all be traced back to dollars and cents, so more green to go around is always a positive.
Oh, and when teams make more money, they can also spend more money. Provided owners aren't penny-pinching scrooges, more spending is also a good thing.
Who knows, these on-court ads could help fund your favorite team's next Big Three.