Lakers’ jersey patch sponsorship valued at nearly $200 million
The Los Angeles Lakers anticipate a significant financial windfall with the organization’s next jersey patch sponsorship deal, according to a report from Jabari Young of CNBC.
So much so that the Lakers estimate that a new jersey patch arrangement ought to generate more than 16 times the profit compared to the the team’s current sponsorship agreement.
It was announced Wednesday that the Lakers have formed a new partnership with Sportfive. The firm will assist the team in seeking out a new jersey patch sponsorship deal and ensuing financial negotiations.
🗺 SPORTFIVE teams up with the @Lakers to take them around the world.— SPORTFIVE (@sportfiveagency) February 17, 2021
The 17-time NBA Champion will lean on the agency's international expertise to identify and secure partnerships for their jersey patch and in new global markets. pic.twitter.com/FdcMteX8IG
“We view the Lakers as a global brand with an international presence,” Tim Harris, Lakers president of business operations, said in a statement. “It’s important to us to partner with an agency whose reach equals our ambition. Sportfive understands the values of the Lakers organization and our desire to find a jersey patch sponsor that aligns with those values.”
The Lakers’ current jersey patch sponsorship is with Wish, an e-commerce company. The deal between the parties was believed to be in the range of $12 million to $14 million when it began in 2017.
However, in an statement formally announcing the Lakers-Sportfive partnership, the team relayed that “the estimated sponsorship media value of the team’s jersey patch for the 2019-2020 season was $199 million.”
The Lakers’ deal with Wish concludes with the end of the 2020-21 NBA season. It’s doubtful that the Lakers will fetch nearly $200 million annually in its next jersey patch partnership despite the stated estimate.
After all, the entire NBA is believed to have only generated approximately $150 million in revenue with its patch sponsorship program since it began with the 2017-18 season.
However, it’s not out of the realm of possibility, either. The NBA expects “significant growth” in its jersey sponsorship program in the coming years. The league has long touted how the patches generate incredible brand awareness and visibility for companies, and the data appears to confirm as much.
Whatever the case and however it plays out, the Lakers organization appears intent on positioning itself in the strongest possible negotiating posture ahead of the looming negotiations.