
In April, the NBA approved a three-year trial run that would allow NBA teams to sell the placement of a corporate logo on their uniforms. The league reportedly has has put several restrictions for those advertisements into place.ย
According to Darren Rovell of ESPN, NBA teams will not be permitted to sell uniform advertisements to alcohol, tobacco, gambling or media companies. Companies involved in politics and Nike competitors are also prohibited. (The league signed an eight-year apparel deal with Nike in April 2015 that will begin in the 2017-18 season.)
Rovell added: "NBA teams can do marketing deals with daily fantasy companies, but daily fantasy company logos will not be allowed on NBA jerseys."
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According to Rovell, the NBA agreed to allow teams to begin recruitingย companies to buy a 2.5-inch-by-2.5-inch space on their uniforms.
"It's my hope, independent of whatever additional revenues are generated through this patch program, that the greatest impact will be in this amplifying effect of companies choosing to associate directly with a team jersey, then going out and promoting that relationship to the largest market," NBA commissioner Adam Silver told Rovell on April 15.
While it remains unknown how much revenue teams might be able to generate through the program, it is a potentially lucrative endeavor. Premier League giants Manchester United ($45 million per year from Chevrolet) and Chelsea ($40 million a year fromย Yokohama Tire) make a small fortune from selling advertising on their kits, per Andy Dolich of CSN Bay Area.
Those advertisements, it should be noted, are featured centrally and prominently on the front of a player's chest.
While it's unlikely NBA teams will hit those figuresโespecially in the initial years of the programโBrooklyn Nets CEOย Brett Yormark revealed he was hoping to make up toย $6 million a year selling a uniform advertisement, as he told theย Sports Business Journalย (via Dolich).
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