Where the Value Lies in NBA Jersey Patches May Surprise You

Data from a new research study sheds some important light on how—and how much–value NBA jersey patch ID delivers to sponsors.

Since the league introduced jersey sponsorship in 2017, opinions have varied about whether the fees paid for the 2.5-inch-square patches are in line with the benefits they deliver.

Earlier this year, research firm GlobalData reported that sponsors were paying an average of $10.88 million a year for jersey patch partnerships, with the Brooklyn Nets and New York Knicks each earning $30 million annually at the high end for their Webull and Sphere deals, respectively, while the Orlando Magic and Utah Jazz each take in $5 million a year from their respective Walt Disney World and LVT agreements.

While those figures demonstrate a strong market, it’s notable that in the seven seasons patches have been allowed, only five teams have retained their initial jersey partner: The Golden State Warriors (Rakuten since 2017), Magic (Disney since 2017), Toronto Raptors (Sun Life since 2017), Phoenix Suns (PayPal since 2018) and Oklahoma City Thunder (Love’s Travel Stops since 2019).

Just three years ago, 17 of the league’s clubs still had the same patch sponsor they started with.

Twenty-five teams are on their second or third patch sponsors, with four franchises (Los Angeles Clippers, Memphis Grizzlies, Portland Trailblazers and Sacramento Kings) currently without a deal as the 2024-25 season approaches.

Montreal-based Elevent, a provider of sponsorship management software tools, consulting services and research, recently fielded a study into the awareness generated by NBA jersey sponsorships. The headline result was that only 26 percent of the nearly 2,500 NBA fans surveyed could correctly identify the patch sponsor of their favorite team.

While specific results varied by franchise, that overall statistic is disappointing. Compare it to the fact that more than twice as many NBA fans (53 percent) can correctly identify their team’s stadium naming rights partner.

But an even more interesting and enlightening finding from the survey was that 43 percent of fans who follow teams on social media can correctly identify the patch sponsor compared to just 29 percent of those who follow on TV. Unfortunately for the league in this regard, 77 percent of NBA fans follow games on TV, with just 21 percent following on social media.

In announcing the research results, Elevent managing partner Francis Dumais noted, “The value of premium sponsorship assets is typically driven by impressions from TV viewership, but that is not the case with the NBA jersey patch, so brands may need to make additional investments in activation or other assets to reach this audience. In many ways, the outsized role of social media is not surprising: The jersey patch logo is tiny compared to other assets and attached to a moving target in the distance for TV and stadium viewers, whereas social media and online consumers are likely viewing still, close-up images of players.”

Elevent also examined the exposure generated by the Knicks’ Sphere patch using the firm’s broadcast and social media tracking and analysis tool. It estimated that 74 percent of the exposure value from the patch was attributable to social media—images, videos and mentions on Facebook, Instagram, TikTok, YouTube, and X.

The study’s awareness and exposure findings are a stark reminder that jersey patch deals are best utilized as the cornerstone for larger, integrated partnerships that include content development, live experiences and other activations.

Considering a final stat from the survey—that 63 percent of NBA fans said they were open to engaging with sponsors’ activations compared to 47 percent of the general population surveyed—a jersey patch agreement that includes a fully activated roster of rights and benefits stands a good chance of delivering ROO or ROI even at an eight-figure valuation.