NBA Sponsorships

The NBA is a very profitable organization through the use of sponsorship's and different marketing techniques. The organization has a long list of sponsors which include Nike, Adidas, State Farm, etc. Every single game provides an opportunity for companies to market and advertise their products and services through commercials.

The following is a pie chart that shows the percentage according to IEGSR of sponsorship involvement from the most active sponsors in the NBA:

Gatorade has been one of these sponsors to promote their products. However, they market their products not only through commercials but through in-game endorsements by getting the players to use their towels or to drink their products when dehydrated.

The following video portrays a relationship between Gatorade and one of the NBA’s greats, Michael Jordan:

The amount of well-known companies that sponsor and want to be linked with this organization is outstanding. It provides one with a better insight into how prestigious this organization is and what an honour it is to be associated with it.

Do you know any sponsors not listed in the pie graph above that are associated with the NBA?

Sources:

Gatorade. (2015, February 15). This Is How You #BeLikeMike | NBA All-Star 2015. Retrieved from YouTube: https://www.youtube.com/watch?v=SOVnDu1IZjQ

NBA Sponsorship Revenue Totals $679 Million In 2013-2014 Season. (2014, August 11). Retrieved from IEGSR: http://www.sponsorship.com/iegsr/2014/08/11/NBA-Sponsorship-Revenue-Totals-$679-Million-In-201.aspx

Signature Shoes in the NBA

Once a basketball player excels and becomes a superstar, he is often offered a chance to make a signature shoe. Before a brand can present an athlete with this opportunity, they have to ensure that there is a demand within the consumer market and that the basketball player has enough media coverage.

After this step, the design process of the shoe begins which incorporates different elements the athlete desires. Regardless of which shoe the consumer decides to purchase, they all express the same idea: NBA shoes are designed with specific technology that betters your basketball game on the court to help you become a better athlete.

Michael Jordan, LeBron James, Kobe Bryant, Kevin Durant are a few of the NBA’s superstars that have their own signature shoes. They all have had huge success with their shoe lines, especially Jordan. Many fans idolize these superstars and when they see them being successful in their careers, consumers may believe that the purchase of these signature shoes, may also help them become better at basketball.

The following video shows Nike portraying the different elements and technology that are integrated into a shoe to affect different parts of an athlete’s game:

Would you purchase a basketball shoe based on what the shoe has to offer or whether it's made by your favourite athlete?

Source:

Nike. (2012, August 10). Nike+ Presents: Maximize Your Game. Retrieved from YouTube: https://www.youtube.com/watch?v=LYWEN0g0diI

NBA All Star Weekend

Year after year, the NBA All Star Weekend surpasses expectations with its captivating entertainment and unparalleled experience. It is a remarkable opportunity for the NBA to increase popularity and to receive more attention globally. The organization allows the world to experience a glimpse of the best basketball athletes in their elements.

The following video shows a few highlights from the 2015 NBA All Star Weekend:

The weekend displays events such as the All-Star Celebrity Game where celebrities such as Kevin Hart, Common, Abhishek Bachchan, Skylar Diggins and many more play against one another to provide entertainment for the general public. The weekend also includes events like the Degree Shooting Stars, Skills Challenge, Three-Point Contest, Slam Dunk Competition and the All-Star Game.

However to experience this amazing event firsthand is very costly. According to Forbes, “the average price for NBA All-Star Game tickets is $1,837.16 on the secondary market.” As one can clearly see, the low supply and great demand for All-Star Game tickets is driving prices higher than ever.

Despite this, the city that the All-Star Weekend occurs in tends to receive an economic boost due to the lavish spending of fans and celebrities and due to media coverage which encourages visitors to experience that cities lifestyle. All in all, the All-Star Weekend is a successful event that leaves players, consumers and businesses highly satisfied.

Would you spend the high price required to experience the All-Star Weekend?

Sources:

Lawrence, J. (2015, February 10). Cheapest Tickets For 2015 NBA All-Star Game Nearing $1,000 On Secondary Market. Retrieved from Forbes: http://www.forbes.com/sites/jesselawrence/2015/02/10/cheapest-tickets-for-2015-nba-all-star-game-nearing-1000-on-secondary-market/

NBA. (2015, February 14). NBA All-Star Weekend Top 10 Plays: February 14th. Retrieved from YouTube: https://www.youtube.com/watch?v=cwFXB0zWLoc

NBA Ticket Prices

Perhaps the biggest profit margin stems from the correlation that the more fans that attend NBA games, the more they can spend on a player. It is well known that if an athlete is being paid a higher salary compared to his fellow NBA players, than he is most likely a superstar. Keeping this in mind, fans are willing to pay that much more to witness the skill and drive an amazing athlete demonstrates. Thus when superstars such as LeBron James, Steph Curry, Kobe Bryant and many more play in their home cities or visit other teams, ticket prices tend to be higher than usual.

According to The New York Times, "the league's owners will soon be reaping the benefits of a new television contract that will pay out $2.66 billion a year, nearly triple the amount of the current deal." This new television contract will result in the player salary cap being increased by millions which will most likely be followed by an increase in ticket prices.

I believe that this television contract will result in the NBA targeting a bigger audience which will lead to an increase in consumer demand. Due to the relationship between supply and demand, and in this case, demand most likely being far greater than supply, the NBA can risk setting higher than normal ticket prices and still achieve sold out crowds and higher revenues.

Do you think that the NBA will substantially increase ticket prices once the salary cap increases?

Sources:

Schonbrun, Z. (2015, February 12). N.B.A. Is Having an All-Star Party (and You’re Not Invited to the Main Event). Retrieved from The New York Times: http://www.nytimes.com/2015/02/13/sports/basketball/nba-is-having-an-all-star-party-this-weekend-and-youre-not-invited.html?_r=0&module=ArrowsNav&contentCollection=Pro%20Basketball&action=keypress&region=FixedLeft&pgtype=article

Jingle Hoops

This is a short video of some of the NBA's superstars promoting the special edition Christmas Day uniforms. The following video is a great way for the NBA to use some of the most popular athletes in the game of basketball to endorse their merchandise and increase sales:

Sources:

NBA. (2013, November 14). Jingle Hoops. Retrieved from YouTube: https://www.youtube.com/watch?v=EYEHUOpwNvE

The Impact of Drake and Jay-Z on the NBA

Music artists tend to associate themselves with NBA players from their home teams. Two well-known music artists associated with the NBA are Drake and Jay-Z. With Drake representing the Toronto Raptors and Jay-Z representing the Brooklyn Nets, both artists are bringing in revenues for the NBA throughout North America. 

According to Georgetown Sports Analysis, “Drake could be the missing factor which will draw more fans to the games, shine the spotlight brighter on Toronto basketball, attract world-class free agents, and result in a long sought NBA title. To kick off the changes, he is planning to overhaul the uniforms and logo in an attempt to rejuvenate interest in merchandise and boost sales.”

Jay-Z has also played a huge role in the growing popularity and revenue of the Brooklyn Nets. According to Georgetown Sports Analysis, "Three months before the season began, sponsorship revenue was also double than what it had been the entire previous year. The Nets sold out every game in their inaugural season, in large part to the flashy, high priced free agent signings that resulted from the opportunity of working with Jay-Z. His brand-building campaign, anchored by what he is most known for - rapping - is helping turn the Brooklyn Nets into a globally recognized organization."

Drake and Jay-Z have increased profits within the NBA and I have seen firsthand the impact Drake has had on the Toronto Raptors. The number of individuals wearing Toronto Raptors gear has increased immensely around the city. Drake’s OVO night at the ACC has been a great success leading to sold out crowds and countless fan support. The atmosphere of the city and of the ACC was remarkable during the Raptors playoffs and to top it all off, the ‘Drake era’ has led to the All Star Weekend taking place in Toronto instead of the US for the first time in NBA history.

Who do you think has had a bigger impact on the NBA, Drake or Jay-Z?

Sources:

Graboyes, W. (2014, November 30). Can Drake Bring the Jay-Z/Nets Strategy to Toronto? Retrieved from Georgetown Sports Analysis, Business, and Research Group: https://georgetownsportsanalysis.wordpress.com/2014/11/30/can-drake-bring-the-jay-znets-strategy-to-toronto/