Beginning next season, NBA teams will have the option to sell advertising space on their uniform. At least 12 teams have announced 3-year jersey sponsorship deals, ranging in value from $4 million to $8 million per year. While previously difficult to measure branding ROI, companies like IdenTV now enable brands to track their sponsorship efforts using facial and object recognition technology within live video. Logos on NBA jerseys are expected receive at least 2 billion+ impressions, across various media platforms, over the course of a season.
What Is The Value Of Jersey Sponsorship?
Howie Long-Short: This is still a rounding error for corporate sponsors’ ad budgets, but as a fan, I wonder how many years until these turn into soccer jerseys?
Fan Marino: How do you slap a corporate logo on the Celtics or Lakers jersey? Is there no sanctity left in sports?!?
An investment group lead by lawyer Chuck Greenberg has submitted a letter of intent to purchase the NHL’s Carolina Hurricanes. The group will keep the team in Raleigh. While the LOI is non-binding, negotiations are far enough along that attorneys for both sides are reviewing the terms. There is currently no timetable for the sale, but a deal could potentially be finalized prior to the October start of the season. Current owner Peter Karmanos has stated he believes he can sell the team for $450 to $500 million.
Hurricanes sales draft agreement goes to lawyers; Greenberg meets with Centennial Authority chairman
Howie Long-Short: As of November ’16, Forbes had the team’s enterprise value at $230 million. It is known that Greenberg’s group has struggled to raise money. I can’t see this deal closing anywhere near the $450 million Karmanos wants.
Fan Marino: Carolina is the least valuable NHL franchise. Uphill battle selling hockey in North Carolina, when UNC, Duke and N.C. State are playing hoops at the same time.
The Washington, D.C. based United soccer club may be up for sale and if a deal goes through, it will be the most anyone has ever paid for an MLS franchise. With the new stadium and team debt included, the franchise has an enterprise value pushing $500 million. It’s been reported the team has reached out to several prominent D.C. based investors including, Redskins owner Dan Snyder and Wizards owner Ted Leonsis, to gauge their interest. It is worth noting that league expansion fees continue to rise (currently at $150 million, expected to reach $200 million) and Forbes estimated last fall that the average MLS franchise value was up 18% from 2015.
Owners of D.C. United Soccer Team Are Said to Consider Selling
Howie Long-Short: $500 Million for an MLS franchise sounds like a lot, but it sounded like a lot when Joe Lacob & Peter Guber paid an NBA record $450 million for the Warriors, back in 2010. The franchise is worth $2.6 billion today.
Fan Marino: D.C. United is the Green Bay Packers of MLS. Early domination (4 championships in 10 years) and then nothing for what seems like an eternity.
Nets owner Mikhail Prokhorov has placed a $2 billion price tag on his Brooklyn basketball franchise and their 5 year old arena, the Barclays Center. The Nets are looking for a Chinese buyer to purchase the team and reportedly had 20 meetings last month to gauge interest; though no price has been agreed to and no sale is imminent. The Los Angeles Clippers were the last NBA team to be sold. The L.A. based franchise went for an NBA record $2 billion back in 2014. The Nets are currently one of two NBA teams for sale, the other being the Houston Rockets.
Mikhail Prokhorov Reportedly Hoped for $2 Billion Nets Sale
Howie Long-Short: Forbes values the Nets/Barclays Center at $1.8 billion. The Clippers sold for $2 billion and lease space at the Staples Center. The Lakers and Knicks aren’t hitting the market. There is no way the Nets aren’t going for $2 billion plus.
Fan Marino: As a Nets fan, I can’t complain about Prokhorov as an owner. He’s spent money trying to win. I do fault him for hiring Billy King.
Miami Marlins owner, Jeffrey Loria, has agreed to sell the franchise to a group of investors, led by venture capitalist, Bruce Sherman, and former Yankees shortstop, Derek Jeter for $1.2 Billion. Sherman will be the “control person”, while Jeter, who only put up $25 million of his own money, will run business and baseball operations for the organization. Jeter has his work cut out for him. The team is expected to lose $60 million this season, with the league’s worst TV deal and among the lowest attendance in all of baseball. On the field, the Marlins haven’t made the playoffs since 2003. The deal, which must be approved by 3/4 of MLB owners is expected to be voted on in early October.
Loria agrees to sell Miami Marlins to Sherman and Jeter, source says
Howie Long-Short: Forbes valued the team at $940 million. Jorge Mas wasn’t going over $1.1 billion. I’m surprised by the winning number.
Fan Marino: Rumors are circulating that the Jeter group may remove the home run sculpture in left center field. I was a regular attendee at games during the ’12 season. Never has something brand new seemed so outdated from the start.