The Brooklyn Nets have been one of the most disappointing teams in recent memory, but they are still beating the Lakers.
The los angeles lakers vs brooklyn nets is a match up between the Brooklyn Nets and the Los Angeles Lakers. In this match, there has been an interesting deal from the Brooklyn Nets.
The Brooklyn Nets have lately been in the headlines for reasons they’d prefer not discuss, but apart from the antics of its conspiracy theorist All-Star guard, the team is doing well. They’re still one of the favorites for the title, and their jersey patch has given them a new income source.
The sum of money involved in the transaction set a new milestone, surpassing what more established teams aspire to achieve. But, as teams continue to press for more money from potential sponsors, it’s unclear if these agreements are worthwhile for the sponsors.
The jersey agreement between the Brooklyn Nets and Nike establishes a new benchmark.
The Brooklyn Nets and brokerage platform @WebullGlobal have agreed to a MONSTER jersey patch agreement.
That’s roughly $30 million each year, which is half as much as the Golden State Warriors or the Los Angeles Lakers get.
It’s also three times what Barclays pays for name rights to the Brooklyn Nets’ arena. pic.twitter.com/IEsxuh204Q
September 27, 2021 — Joe Pompliano (@JoePompliano)
Brooklyn and Webull, a New York-based brokerage platform, agreed last month to have the latter sponsor a patch on the Nets’ jerseys. The agreement’s details have yet to be revealed. However, according to CNBC, it’s a multi-year deal worth about $30 million per year to the Nets.
Webull takes the place of Motorola, who was the jersey sponsor for the 2020-21 season. The agreement encompasses more than just a sliver of Kevin Durant’s uniform. The emblem of the electronic trading platform will also feature on the uniforms of the New York Liberty of the WNBA, the Long Island Nets of the NBA G League, and their NBA 2K esports squad.
Webull also secured the rights to use the Nets’ intellectual property outside of North America on a local and international level. The business will have digital ads at the Barclays Center and will collaborate with the Nets to improve STEM initiatives for disadvantaged areas throughout the city.
Other teams have negotiated large patch deals, but none compare to the Brooklyn Nets’ jersey agreement.
Kevin Durant (L) with James Harden of the Brooklyn Nets | Sarah Stier/Getty Images
According to CNBC, Brooklyn’s agreement with Webull easily breaks the previous record for the most costly jersey patch. The Los Angeles Lakers and Golden State Warriors were previously tied for the largest contract.
The Lakers collaborated with Bibigo, a South Korean food company, for a patch sponsorship worth $20 million per year. This was a substantial boost over their previous sponsor, Wish, who paid $12 million over the course of their three-year contract. The Warriors have a partnership with Rakuten, a Japanese retailer.
It’s amazing that the Nets were able to get such a large deal. This demonstrates Joe Tsai’s networking prowess and the worldwide clout of their celebrities. The Webull agreement is worth three times as much as the whole arena’s name rights.
It’s easy to see why a company would spend this much to be a little part of the NBA. The league has a worldwide audience, and the players have devoted fanbases that would cheer for anything they even implicitly support.
Advertisements in jerseys aren’t new, but are they a smart investment?
In other sports, patches on the jerseys are commonplace. In soccer, sponsorships abound — Manchester United has a “global lubricant” relationship with Gulf Oil, for example — and the WNBA has had them since 2009. In 2017, the NBA became the first of the four major professional sports leagues in the United States to put sponsors on their shirts.
Naturally, many objected to the modifications before settling down once they were accepted as part of the uniform. The NBA has discovered a new method to generate money that does not have a direct effect on the on-court product. Even a transaction for $10 million may result in a 5% boost in overall yearly income for a franchise.
The NBA expanded the size of patches and allowed clubs to use global rights to make the asset more appealing. However, according to Huddle Up, many businesses who joined a few years ago are no longer renewing their sponsorship contracts. This may indicate that the profits from these transactions aren’t as high as anticipated.
That’s not to say that pursuing the gravitas of a jersey patch isn’t appealing. Prior to this season, the Portland Trail Blazers received the NBA’s first cryptocurrency jersey patch from crypto platform StormX.
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