NBA Sponsorship Revenue Sees Significant Growth in 2024-25
NBA franchises collectively generated $1.62 billion in sponsorship revenue during the 2024-25 season, marking an 8% increase compared to the previous year. This growth reflects a 91% rise over the last five years, up from $850 million.
Impact of Jersey Patch Partnerships
A key driver behind this increase is the expanding use of jersey patch sponsorships, a trend that has gained momentum since the NBA first permitted them in 2017. The number of jersey patch deals more than doubled year-over-year, with six new brands entering the league via these partnerships and injecting over $80 million in new sponsorship spending.
Typically lasting around three years, these deals have generated a substantial buzz and added significant revenue streams. Eleven recently sold jersey patch agreements collectively contributed nearly a quarter of a billion dollars in incremental revenue, underscoring the NBA's robust appeal in this area.
Other Factors Driving Sponsorship Growth
The recent opening of the Los Angeles Clippers' Intuit Dome also played a pivotal role in raising overall sponsorship income. New arenas and expansion teams tend to elevate league-wide revenue by attracting additional sponsors and providing fresh commercial opportunities.
Notably, around 450 brands participated in NBA sponsorships for the first time during this season. Significant growth emerged from sectors such as construction, alcohol, and technology.
Leading Brands and Sponsorship Trends
- Rakuten and Chase were among the top spenders within the league.
- Rakuten holds a jersey patch partnership with the Golden State Warriors.
- Chase sponsors the Warriors’ arena, the Chase Center.
Despite this growth, the NBA's sponsorship revenue remains below the NFL’s team sponsorship total, which reached nearly $2.5 billion with a 6% year-over-year increase.
Media Rights Deal Amplifies League's Commercial Potential
The surge in sponsorships coincides with the NBA's groundbreaking $77 billion media rights agreement, which takes effect next season. This vast deal spans multiple platforms, including ESPN, NBC, Peacock, and Amazon Prime Video, demonstrating a strategic shift toward streaming and diversified broadcast exposure.
Influence of Star Players on Sponsorship Landscape
Individual NBA stars continue to attract high-value endorsement deals, which, while not directly counted in team sponsorship revenues, often serve as gateways for brands to deepen their engagement at the team level.
Many players now function almost like independent brands, maintaining multiple endorsement partnerships. Unlike team contracts, which typically span several years, player endorsement deals can be shorter, though generational talents such as Stephen Curry and LeBron James secure long-term agreements.
Highlighting this trend, Philadelphia 76ers’ rookie Jared McCain signed 30 endorsement deals this season, setting a record for the most deals by a single NBA player in one year. New York Knicks stars Karl-Anthony Towns, Josh Hart, and Jalen Brunson also led their team to heightened visibility through numerous endorsements.
Case Study: Stephen Curry's Endorsement Journey
Stephen Curry's partnership with a prominent sportswear brand began in 2013 with a deal worth approximately $4 million annually. His 2023 contract extension included 8.8 million company shares valued at $75 million at the time, exemplifying how player endorsements can evolve into substantial business ventures.
NBA Teams Among U.S. Sports Sponsorship Leaders
Alongside the Golden State Warriors, teams such as the NFL's Dallas Cowboys and MLB's Los Angeles Dodgers rank among the top U.S. sports franchises for lucrative sponsorship businesses, reflecting the ongoing commercial strength of elite professional sports organizations.