Report: Raptors owners seeking $4M-$5M for potential on-jersey ads
The NBA's board of governors has yet to vote on a proposal that would allow advertisers to buy space on jerseys in the near future, but the Toronto Raptors ownership group is pre-emptively getting its ducks in a row, in preparation for a move that commissioner Adam Silver has called "inevitable."
Maple Leaf Sports and Entertainment officials have suggested to prospective advertisers that the cost of placing a corporate logo on a Raptors jersey will be somewhere between $4 million and $5 million per season, TSN's Rick Westhead reports.
One Toronto advertiser, however, told Westhead that MLSE is unlikely to get even half of that asking price, because "it's so small and will be (an) afterthought" after just a couple games.
League owners discussed ads on jerseys during their annual meeting over All-Star Weekend in February, with the majority reportedly coming out in favor. They are expected to vote on the move this month, and if it passes, it may be instituted for the start of the 2017-18 season.
Under the provision discussed in February, the ads would take the form of patches - about 2 1/2 inches by 2 1/2 inches - on the jersey's shoulder sling. They would be identical in size and placement to the Kia logo that appeared on the All-Star Game jerseys in Toronto - the first of its kind.
According to Westhead, MLSE is trying to stay ahead of the curve because it's concerned that advertisers will try to use lower-value deals with smaller-market teams as a precedent by which to suppress jersey-ad contracts across the league.
Silver has suggested that selling ad space on jerseys could net the league up to $100 million per year in revenue.