Measurement Firm Says NBA Jersey Patches Worth Up To $160M
If the NBA moves forward with a plan to allow corporate sponsor logos on the front of its uniforms for the 2013-14 season, one measurement firm estimates that the exposure value generated during televised games alone could reach $160 million. According to research conducted by Joyce Julius & Associates, Inc., the proposed 2.5-inch logos could appear clear and in-focus for nearly 500 hours combined during regular season and playoff game telecasts. The on-screen time projection is based on the results of a test patch utilized during the NBA Finals, when the Miami Heat and Oklahoma City Thunder wore a league branded patch.
Joyce Julius calculates television exposure value by comparing the in-broadcast visual and verbal exposure to the estimated cost of a national commercial during the telecast and applying Joyce Julius Recognition Grading — which takes into account such factors as size and placement of the image on screen, as well as brand clutter and integration of the brand into the activity.
A typical NBA team could expect to generate nearly 16 hours of on-screen time for a jersey patch sponsor during the NBA regular season from local and road team broadcasts, as well as national game telecasts on ABC/ESPN, TNT and NBA TV. When considering the average cost of a commercial during the various broadcasters' coverage, and accounting for size limitations and brand clutter, Joyce Julius estimates the average team could generate $3.3 million of exposure value for its partner, but says that large market, high-profile NBA teams, enjoying more nationally televised games and higher advertising rates for their local broadcasts, could push totals totals closer to $6-$8 million for the regular season.
As for the post-season, Joyce Julius estimates that collectively among the 16 teams that make the playoffs, sponsored jersey patches could provide in-broadcast exposure value of $59.6 million.
“The large number of broadcast hours devoted to the NBA each year coupled with the projected visibility of the jersey logos during those telecasts obviously makes this a very desirable piece of sponsorship real estate from a brand recognition standpoint,” said Eric Wright, President and Executive Director of Research at Joyce Julius & Associates. “Additional and significant media exposure could be generated from game photos appearing in print articles and on the Internet, while video highlights would certainly add to the mix as well.”