Report: NBA excludes alcohol, tobacco ads on jerseys

The NBA is opening the doors to another source of revenue by allowing an advertisement patch to be worn on jerseys.

Teams will be in charge of negotiating with sponsors, but there will be restrictions to what products teams can endorse.

Jersey ads cannot be sold to companies involved with alcohol, tobacco, gambling, politics, media companies, or Nike competitors, ESPN's Darren Rovell reports.

Advertisements will be introduced once the league's jersey deal with Nike starts in 2017. A 2.5-inch-by-2.5-inch patch will appear on the left shoulder opposite the Nike swoosh on the right.

The league will generate an estimated $150 million annually on jersey ads.