The three-year pilot program, which will also take effect for the 2017-18 season, will allow companies to buy advertising real estate in the form of 2.5-by-2.5-inch patches.
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The big argument for allowing American professional sports teams to advertise on their uniforms is “look at the teams in the English Premiere League, European basketball league, and the KHL, their uniforms have a ton of advertisements!” “That’s probably the greatest reason for us to do it”, Silver said.
In a news release, the league said the sponsor patch will not appear on the retail versions of player jerseys, though teams will have the option to sell the jerseys with sponsor patches in their own retail outlets. A small patch on the jersey is a good way to ensure that whatever happens with television money, the teams will still be healthy businesses thanks to selling these 2.5 in. x 2.5 in. ads.
The vote to approve jersey ads was not surprising, and the movement has reportedly been spearheaded by commissioner Adam Silver. The league has called for a three-year trial for the shoulder sponsor’s initial run. “NASCAR, golf, tennis and many global sports leagues have already put ads on their jerseys”, said Brian Berger, host and founder of the nationally-syndicated radio show Sports Business Radio.
The Dallas Cowboys do not have ads on their game jerseys, but do have AT&T logos on their practice jerseys. In 2012, during the final years of David Stern’s tenure as league commissioner, a plan to put logos on jerseys came close to fruition before ultimately being scuttled.
The crass commercialization of team uniforms provides another $4-6 million per year from selected sponsors, which comes out to $120-180 million per year in new revenue for the league, sources told ESPN.
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According to Bloomberg, the ads will generate 0 million in revenue, which will be split between the teams and a revenue-sharing pool.
