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Microsoft among deals that helped NBA set a record $1.46 billion in sponsorship revenue

Microsoft deal among $1.46 billion NBA sponsorship revenue record

June 30, 2021: -The National Basketball Association made a record of nearly $1.46 billion in sponsorship revenue in its regular season of 2020-21, according to estimates by IEG, a sports partnerships consultancy firm.

IEG said the figure is up 6% after a year and increased from the $1.2 billion the NBA made from partnerships after its season of 2018-19.

IEG tracks sponsorship spending throughout pro leagues, which include the National Football League. Its parent company is Bruin Sports Capital, founded by George Pyne, a well-respected sports executive and former NASCAR chief operating officer.

The NBA saw 13 new deals in its 72-game campaign, which include Microsoft. The tech sector helped the league bring in about $115 million each year in new spending. The Tech categories, lottery, gaming, telecommunications, and banking pay above $100 million per year for sponsorships of NBA, said IEG.

Peter Laatz, IEG global managing director, noted in a statement that the NBA is within the NFL in sponsorship deals. The NFL got a profit of $1.62 billion from sales for its pandemic season. Laatz added, “the star power, number of games, variety of sponsor-able assets, and global popularity of the NBA all contribute to the league’s continued growth.”

IEG estimated that the NBA jersey patch deals “total sponsorship revenue for the NBA and its teams had grown by nearly 70% since the previous season before that sponsorship asset was introduced.”

Teams include the Brooklyn Nets, who added new agreements during the season, bringing 27 NBA clubs with patch deals. The only company with multiple patches is Motorola. The company has contracts with the Nets, Milwaukee Bucks, and Indiana Pacers.

Said Laatz, “Some teams are getting above $15 million each year for jersey patches, which is the closest to the $30 million a naming rights sponsorship can bring in annually.”

Companies favor insurance, retail, and alcohol slots for NBA sponsorships. IEG estimated each of those categories has roughly 70 deals each. State Farm and Verizon are among the “most involved brands” as each company has 20-plus agreements across the league and its teams.

Now, the NBA is wrapping up its season as teams are competing for conference championships in the playoffs. The NBA Finals are scheduled to start on July 8.

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