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Adam Pantozzi / NBAE via Getty
In a season marked by record-setting attendance figures, the NBA will generate $1.4 billion in team sponsorship revenue in 2022-23, up $100 million, or 10.5%, from the previous regular-season campaign.
According to a new report from Sponsor Unit, the NBA’s 30 franchises nailed 2,430 sponsorship deals during the season, which closed on October 18 and ended on April 9. That represents a 3.5% lift compared to 2021-22, the league’s first full 82-game season since the start of the coronavirus pandemic.
NBA franchises have made a killing creating sponsorship deals with brands in the financial services, technology, healthcare, gambling and alcohol sectors. According to SponsorUnited, banks and credit cards led the way with $289 million in investment, up 9 percent from a year ago. This is a 1% decrease from technology 2021-22 spending, healthcare investment increased 7% to $92 million, and alcohol increased 3% to $79 million.
Gaming was one of the fastest-growing categories, with sponsorship revenues up to $71 million, a 21 percent gain. With 791 awards for on-site advertisers, the regular season was a great time to do business with the NBA. The total attendance was 22.2 million, breaking the record of 22.1 million set in 2017-18. Capacity was an all-time high of 97 percent.
The beer/wine/spirits crowd has been hard to beat this season, as premium tequila brands are stamping their trademarks on a variety of crowded platforms. Among the most high-octane in the tequila niche are Astral, Casa Noble and Herradura – all of which have formed new group partnerships this season.
The passion for blue-agave distillers began production in 2019, when small-batch Cincoro Tequila signed on as the official sponsor of the Lakers. As it happens, Lakers owner Jeanie Buss is one of five NBA kingmakers who founded the premium tequila brand. Other stakeholders include Michael Jordan, Bucks co-owner Wes Eden, and Celtics co-owners Vic Gruesbeck and Emilia Fazzalari.
Currently, 66% of NBA clubs have inked sponsorship deals with the tequila maker, and active players are getting in on the act. LeBron James has endorsed Lobos 1707 since the end of 2020, and Anthony Davis revealed last fall that he had a stake in the brand during a postgame presser.
When Austin Reaves downed several adult drinks during a courtside altercation with fans at the Nov. 18 Pistons-Lakers game, the undrafted free agent later told a reporter, “He asked LeBron if it was his Lobos over there.” … because it smelled terrible. “I’m an investor, bro,” Davis said, to which Hilliy Kobe replied, “That doesn’t mean it’s not in good taste.”
In addition to the tequila craze, NBA players are expanding their personal brand portfolios with less traditional endorsements of products ranging from personal care/health and beauty to tire manufacturers and non-alcoholic beer.
On a league-wide front, the NBA has loaded the season with a list of 45 official sponsors, from Adidas to Wilson. In a relatively rare showing of sponsor charisma, the league has moved forward without an official quick-service restaurant partner since 2009. (After vacating McDonald’s chair 13 years ago, Taco Bell parent company Yum Brands elected not to renew its deal with the league’s broadest sponsorship.) Apple’s Beats by Dre and Kaiser Permanente also disagreed for the 2022-23 campaign.
NBA media partners enjoyed strong business as regular-season in-game advertising on TNT/ESPN/ABC jumped nearly 13% year-over-year to just shy of $633 million. According to iSpot.tv, it was good for a net profit of $71.3 million across the three networks.
Top TV spenders include official league sponsors Google Pixel, AT&T, State Farm and Kia Motors, and despite the Taco Bell tie-up, the brand is still one of the top 10 NBA advertisers in 2022-23.
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