Placing Ads on Professional Athletes’ Jerseys

For the first time for any of the four major U.S. professional sports leagues, the National Basketball Association (NBA) has approved selling 2.5 inch by 2.5 inch advertisements on players’ jerseys, beginning with the 2017-18 season.  The ads are expected by generate $100 million in revenue from various sponsorships, with each of the NBA’s 30 teams selling its own ads.  Ads on jerseys are already common in some U.S. pro sports, such as golf, soccer, and racing.  Beginning with the 2017-18 NBA season, Nike Inc. will outfit NBA players with game jerseys, beginning an eight-year contract to do so and taking over from Adidas AG outfitting players.

Source:  Based on Sara Germano and Steven Perlberg, “NBA to Put Ads on Player Jerseys,” Wall Street Journal, April 16, 2016, B3.