Darius Garland #10 of the Cleveland Cavaliers shoots past Admiral Schofield #25 and Chuma Okeke #3 of the Orlando Magic during the second quarter at Rocket Mortgage Fieldhouse on March 28, 2022 in Cleveland, Ohio.
Jason Miller | National Basketball Association | beautiful pictures
Cleveland Cavaliers sponsored new jerseys. The NBA brand has agreed terms with the hometown steel maker Cleveland-Cliffsthe parties announced on Tuesday.
Terms of the deal have not been made public, but according to people familiar with the deal, it aligns with the Cavs’ previous sponsorship agreement with tire maker Goodyear. That deal is valued at $10 million per season.
The people declined to be named because the terms of the agreement are private.
The deal comes at a favorable time for the Cleveland-Cliffs. The Cavs have been one of the surprise teams in the NBA this season, and they seem headed for post-season. The team placed seventh in the NBA’s Eastern Conference. The last time the team made it to the knockout stages was when LeBron James led them to the NBA Finals for the fourth time in a row in 2018, losing to the Golden State Warriors.
The Cleveland-Cliffs will get increased exposure to the nations if the Cavaliers make it to the knockout stages, as a post-season landing means more TV impressions for the shirt patching partners.
Cleveland-Cliffs are traded on the New York Stock Exchange under the symbol “CLF”. It has a market capitalization of over $16 billion.
New Cavs . shirt patch
Photo: Zack Yohman
In a statement announcing the partnership, Cavs CEO Len Komoroski called the company “the fabric of life here in Northeast Ohio.” Komoroski added that the deal is “very relevant and relevant for Cliffs to be represented, literally, on the fabric of the Cavs players’ jerseys.”
In this new deal, the Cleveland-Cliffs will receive in-game signage at Rocket Mortgage FieldHouse, build on an existing sponsorship deal with the team, featuring a naming rights slot to the arena. However, Cleveland-Cliffs will not acquire Cavs training jersey patch assets or virtual floor signage for locally broadcast games. Teams can package those assets in shirt patch deals to increase value.
Patches on NBA jerseys have become ubiquitous in the sports sponsorship market. Since the NBA began its patching program in 2017, team contracts have brought the league about $150 million a year. That number is expected to grow to more than $200 million for the 2021-22 season.
By far, the Brooklyn Nets has the most expensive patching contract. In September 2021, CNBC reported that the Nets make $30 million a year from the online trading platform WeBull. That deal eclipsed the Golden State Warriors’ $20 million-per-season contract with Japan-based e-commerce company Rakuten. That deal was renewed last year and expires after the 2022-23 season.
The deals to patch newer NBA teams will boost the league’s sponsorship revenue, reaching a record $1.46 billion for the season, according to estimates by IEG, a sports partnership consulting firm. tournament 2020-21.
