NBA Eyeing $150 Million Per Year From Uniform Ads

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The NBA is slowly heading towards the path that other leagues around the world have gone thru already -- that is allowing ads on the jerseys of their players. Currently, there are only two teams in the NBA that have agreed to put small advertising patches on jerseys. A third team would be following their footsteps beginning next season.

According to a report from The Hollywood Reporter, the NBA is hoping to raise $100 to $150 million a year from jersey ads. The money earned would be split 50-50 between individual teams and a league-wide revenue sharing pool.

Of the four major professional leagues in the United States, the NBA is the first team to allow ads on uniforms. Adam Silver, the commissioner of the NBA, has called their recent venture as "manifest destiny" during the 2016 NBA All-Star Game and even compared it to the settling of the American West.

So far, only the Philadelphia 76ers and the Sacramento Kings have agreed to put ads on their jerseys. The advertising patch measures only 2.5-by-2.5 inches and is part of a three-year trial period which would begin next season.

The Boston Celtics, just recently, became the third team to agree in putting ads on their uniforms, via the Chicago Tribune. The Celtics reached a deal with General Electric (GE) last week to put GE's logo on their primary jersey beginning next season.

Terms of the deal between the Boston Celtics and GE were not disclosed. There are reports, however, that say that GE would be paying the Celtics $7 million per season for the small GE logo patch. The deal is within the estimated $2 milli0n to $10 million per team range.

The Boston Celtics and GE deal may seem a lot of money, but it pales in comparison to European soccer, where uniform ads are well established. Manchester United, for example, gets $80 million a year from the Chevrolet logo on its jersey.

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