NBA teams are going to begin a three-year pilot program next season where advertisements will be featured on jerseys, and the Cleveland Cavaliers have reportedly signed a deal to join the fun.
According to ESPN’s Darren Rovell, the Cavs and Goodyear tires have signed a multiyear contract. Goodyear happens to be headquartered in Akron, Ohio, which is where LeBron James is from.
Eric Smallwood of Apex Marketing Group estimates that the Cavs will make around $7-10 million per year from the Goodyear logo being visible on their uniforms. When you add in social media and other advertising mediums, the deal could be worth somewhere around $30 million annually.
While Goodyear is not the official tire sponsor of the NBA, Rovell notes that that category is not protected. For example, teams cannot sign contracts for jersey advertising with TV networks other than ESPN, ABC and Turner.
Only seven teams have signed deals to have advertisements on their jerseys starting next season, and we know of at least one notable team that was opposed to the idea at one point. It’s hard to imagine many teams turning down the type of money the contracts could generate.
