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- League, whose revenue fell 10% in 2019/20, could miss out on up to US$1bn due to January start
- New inventory includes baseline apron areas near baskets
- Teams also given green light to sell international rights to three sponsors
The National Basketball Association (NBA) will allow its franchises to sell new sponsorship inventory ‘immediately’ to help limit the financial impact of the coronavirus pandemic, according to Sports Business Journal (SBJ).
ESPN reported last week that North America’s premier basketball league saw its revenues for the 2019/20 season fall by ten per cent to US$8.3 billion. Losses related to ticketing alone amounted to US$800 million and it remains unclear whether fans will be able to attend games from the start of the 2020/21 campaign.
A new report published by ESPN earlier this week said that the NBA could miss out on as much as US$1 billion in revenues if the start of next season is delayed until January.
To help offset those potential losses, SBJ reports that the NBA is ‘opening lucrative new revenue streams’ for its teams to bring in crucial commercial income should games have to be played in front of limited crowds or in empty arenas.
Report: NBA targeting 72-game regular season and pre-Christmas start for 2020/21
Among the new commercial inventory available will be the baseline apron areas near the baskets, according to SBJ, which added that teams will also be able to sell international sponsorship rights to three partners, up from three last year.
In addition, it is reported that the NBA has agreed to ease restrictions on hard alcohol, casino and sports betting team sponsorships, which could pave the way for companies from those industries to benefit from greater visibility on in-arena signage.
Another change will reportedly see the NBA let teams create live digital content for second-screen use during match broadcasts that does not feature game footage, such as in-arena halftime shows for a team’s website or app.
The SBJ report coincided with news that the Memphis Grizzlies have become the first NBA franchise to partner with sports betting and daily fantasy operator FanDuel.
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The deal will see FanDuel gain access to official Grizzlies marks and logos for its sports betting offering and daily fantasy sports product, while it will also benefit from in-arena signage at FedExForum, in addition to radio, television and digital advertising.