Lakers hires Sportfive agency to find a new shirt sponsor valued at nearly $ 200 million
LeBron James of the Los Angeles Lakers during a game against the LA Clippers at the ESPN Wide World Of Sports Complex on July 30, 2020 in Lake Buena Vista, Florida.
Mike Ehrmann | Getty Images
The Los Angeles Lakers are looking for a new jersey partner and have hired a global sports marketing agency to do it.
The team announced on Wednesday that it has partnered with Sportfive as a third party agency to find a new patch partner for the National Basketball Association’s 2021-22 season.
The terms of the new partnership were not specified.
The Lakers, who won the 2020 NBA Finals, have a current kit partnership with e-commerce company Wish, which will end after the current season. The deal was valued in the $ 12 million to $ 14 million range at the beginning of 2017.
In the press release announcing the Sportfive deal, the Lakers said, “The estimated sponsorship media value of the team’s jersey patch for the 2019-2020 season was $ 199 million.” The Lakers used the research firm Nielsen to determine the number.
Companies that purchase an NBA kit patch covet the brand awareness that teams achieve at national games on ESPN or TNT, the league’s top media partners.
Sportfive was formerly called Lagardere Sports and Entertainment before being sold to Florida-based private equity firm HIG Capital last year and then renamed. The Lakers said Sportfive would seek a new partner, either nationally or internationally, as the teams can now designate three partners who can freely use their intellectual property outside of the US and Canada.
“We regard Lakers as a global brand with an international presence,” said Tim Harris, President of Business Operations for Lakers, in a statement. “It is important to us to work with an agency whose reach matches our ambition. Sportfive understands the values of the Lakers organization and our desire to find a shirt patch sponsor who corresponds to these values.”
Jason Miller, SVP for real estate at Excel Sports Management, told CNBC that there are “huge” demand-patch partnerships as the NBA opens up global marketing to its clubs.
Excel has sold patches for several teams, including the Boston Celtics, Chicago Bulls, and Houston Rockets. The company also oversees the Minnesota Timberwolves patch supply.
The NBA had sales of approximately $ 150 million from its patch program, which was introduced for the 2017-18 season. The program allows companies to pay to have their logo put on a patch on the shoulder of each player’s jersey.
In an interview with CNBC in October, Amy Brooks, president of the league for team marketing and business operations, said the NBA expects “significant growth” in patch revenue but has not given a specific percentage of growth as the NBA is still battling through Covid. 19 losses.
Correction: This article has been updated to reflect the renaming of Lagardere Sports and Entertainment to Sportfive.