Tuesday, December 6, 2016

Major Sports Leagues Should Have Advertisements on Jerseys

Major Sports Leagues Should Have Advertisements on Jerseys
By:Matt Magennis
Advertisements on soccer jerseys have been used for many years now, and soccer teams around the globe have made a fortune from them. Recently, the WNBA added corporate sponsorships to their courts and jerseys. Many people debate on whether or not this trend of corporate sponsorships should carry into the major US sports leagues, but I think jersey advertisements will bring economical profit to the teams, which in result will enhance the experience for the fans.


For awhile now, the NHL and the NBA have discussed the idea of allowing corporate sponsorships on jerseys, and recently the NBA decided that in the 2017-2018 season they are going to allow for a 2.5 inch by 2.5 inch patch by the shoulder of the jersey (ESPN). However this is not where the big money is going to be made. One of Europe's top soccer clubs Manchester United made a multiyear deal with Chevrolet for $80 million (Forbes), just to feature its name across main part of their jersey. With deals like that in England, it is crazy to think about how much money could be made in sponsorship deals here in the USA. Allowing for this increase in revenue for teams, results in more money for the owners to spend on stadiums, players salaries, and the overall fan experience at games. This also would result in ticket prices decreasing, because owners are making more money with sponsorships than with ticket sales. The demand of basketball events and attending games would rise for customers because of the lowered price of tickets, and the stadiums being reconstructed and renovated. Another benefit to this situation is there is a less chance of lockouts, with players being unhappy. The NBA already has agreed to give the players 50% of the money being made of jersey advertisements, which makes the players happier and significantly lowers the chance of a lockout.

Economically speaking it would be smart for all the major sports leagues to allow jersey sponsorships, with no size restrictions. The only disadvantage to having jersey sponsorship is the look it gives off, however personally I love the look of European soccer jerseys with their corporate sponsorships on them. In the biggest sports market in the world it is time to take a step forward and allow corporate sponsorships on jerseys, because it benefits everyone.


Works Cited
Badenhausen, Kurt. Forbes. Forbes Magazine, n.d. Web. 06 Dec. 2016.
Oliver, Pete. "Ashley Young Sends out a Man United Title Warning to City, Arsenal, Liverpool and Chelsea." Dailystar.co.uk. N.p., 09 Sept. 2014. Web. 06 Dec. 2016.

Rovell, Darren. "NBA Jerseys to Carry Ads Starting in 2017-18." ESPN.com. N.p., n.d. Web. 06 Dec. 2016.

35 comments:

  1. I agree with your comment that this will increase revenue for teams as being a sponsor for an NBA team or an NHL team would be unique. Especially for teams that play in big markets like Los Angeles, Chicago or New York and get a lot of coverage/air time. The companies who sponsor those teams would be able to take advantage of the product placement of their name on national TV stations like ESPN, TNT, etc. This, along with the brand name and reputation of these companies would boost sales in their favor. I think that they should go through with this because not only is it a win-win for both sides with total revenues increasing, but also the jersey designs would look pretty cool.

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  2. There are things to solve like who gets the money made from advertising but overall I think its something that should have been done a while ago. A few years ago Marshawn Lynch got fined by the NFL for having his logo and name on clothes he wore in an interview because it was creating publicity for him on NFL air time. There is money to be made in advertising on jerseys is the point it just seems foolish that it hasn't happened already. It's hard to single out a problem with this there just has to be a lot of work done between owners, commissioners and players to figure a way to help everyone.

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  3. I also agree with this because the only downside to this is the appearance, which isn't even that bad. Considering the benefits to the team and players, it also benefits the sponsored company itself, getting potential customers, in this case, Chevrolet trying to sell cars. If the audience sees that the players are supporting chevy, it might persuade them to get one. Overall, I can't think of why this would be a bad thing, aside from the appearance of the jerseys.

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  4. There is a wide range of possible outcomes from advertisements on jerseys. All of them good. This would bring in extra revenue for the sports franchises which they could use to improve their stadiums, get more players, lower ticket and/or merchandise costs, and simply improve their franchise. Matt is right that there would be a higher demand for tickets if the stadiums were improved and if the ticket prices went down. Letting big corporations advertise on the jersey's is a great idea.

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  5. Honestly, the fact that companies are spending millions of dollars to put their name on a jersey is not worth it. Now I don’t have many jerseys from any sort of team, but I don’t want a big logo on the side of my jersey. The point of having a team jersey is to show off your team, not the sponsor. In addition to that, any professional sports team makes millions of dollars to play soccer or baseball or football, so why do they need to get more money? I understand that ticket prices would decrease dramatically but how are sponsorships a good thing if they give professional players more money and have a huge logo on the jersey? To me, it’s not worth it and those sponsorships could go to something better.

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  6. I agree with how you said the advertisements should have no size limits to almost mimic the European soccer kits because it not only looks cool, but it can bring in a lot of money. However, I disagree with the ticket prices getting lowered. If the teams want to invest in renovations of their stadium, they aren’t going to lower the prices of the tickets. There’s already such a high demand for soccer tickets in Europe that I don’t think the teams would have anything to gain by decreasing the prices of the tickets.

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  7. It would be interesting for teams to get sponsored by specific businesses. I wonder if that would change the way things like drafts would work out. Companies could use their sponsorships to bribe teams to do what they want, I don't think that would end very well... I'm not sure it's the best idea, but it would make things interesting.

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  8. Although many would benefit, advertisements on jerseys are a big amount to spend just to get them printed on. I agree with Allison that if companies are spending millions of dollars to put their names on a jersey, it's not worth it. But, if they had a chance to put their advertisements in other locations, then it could be cheaper with a lower price. It is a good idea placing advertisements in the sports area, but going to this extent just to get the logo or the name on a jersey is too far in my opinion. To me, it just seems that it'll be the same result if the company's logo or name was placed around the arena or court. It's still in the same sponsor, but not on the actual players.

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    Replies
    1. I see what you are saying however most major league teams create new jerseys for every game, so printing the advertisements on them would not cause the team much money. Also the majority of companies that would advertise, are large advanced businesses that have lots of money to spend, so it is not a waste of money for them.

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  9. I don't see a problem with the sponsorship. Looking at professional Soccer in Europe, large logos is a tradition. It is simply another way for companies to advertise, and I have no problem with companies exercising their capitalistic rights, especially if it's only 2.5 by 2.5 inches, nowhere near what you see on the Europe soccer kits.

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  10. Some believe that adding sponsors to jerseys makes the appearance worse, but I actually think that many advertised jerseys look very good. On top of this, this will generate tons of money and give sports an all around improved product. The one thing that I don't agree with is the ticket prices. If stadiums are being improved and the product is getting better, wouldn't the prices stay the same if not go up?

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  11. Economically this would greatly benefit players and teams. However soccer is known for their jersey having logos. But in the U.S.it would completely everyone jersey. Almost making the logo of the team irrelevant. Although I like seeing the logos of the teams and new jerseys, I would understand if the leagues went to sponsored uniforms.

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  12. I don’t think there are major issues with having sponsorship on jerseys, with this change there is a new opportunity for the league to make profits. Though it may be a minor distraction at first, if feel that after a while there will be little difference to the fan experience, and with a new major source of income there are now new ways to improve fan experience.

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  13. Although I think revenue would increase greatly, I don't agree it would eliminate lockouts. The reason lockouts occur is because the players and owners don't agree with the way the money is spent. Not because of lack of funding.

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  14. I don't really understand how advertisements on jerseys will enhance the experience for the fans, but it would definitely be economically beneficial for major sports leagues in the US to create advertisements on jerseys. This would bring more money in for these businesses and the United States.

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  15. Sponsorship on jerseys would be a good idea in my opinion, but I wouldn't make them too big at first. Some fans will need time to adjust to the new printings on jerseys, but eventually it will seem mainstream and will be a great way for teams to make more revenue to support themselves. The NBA's proposal of 2.5 by 2.5 inch ads would be the best in my opinion because it doesn't take away from any team representation but it also can generate a decent amount of revenue.

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  16. There is a wide range of outcomes that could come from advertising. However, I don't think advertisement on the jersey's would bring in a profit that would keep lockouts and player agreement issues to a minimum because its about how the profit is divided and the teams may not divide the profit the way the players want. Along with that, stadium size and quality may not be increased just because logo size is changed. Therefore, the demand of the ticket will not increase as much as expected because the stadium won't be able have an increased quality.

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  17. I think the main problem facing jersey sponsorship in major sports leagues in the US is how players are paid and how money is spent on players for a team. Soccer leagues in Europe are able to buy and sell players to other teams for a few months of the year, which is how teams make money. In most American sports leagues, there is a salary cap and a free agent system where teams bid on players. In Europe, the money from sponsorships is used to buy players, but in America, the salary cap would need major reworking to compensate for the fact that teams could be bringing in proportionally different amounts of money. Overall, I do not believe jersey sponsorship in America could work like they do in England, except for possibly the MLB because of the lack of salary cap.

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  18. I agree with what you say about teams having sponsors on their jerseys because it has no harm for anyone. The sponsor get major advertising by being able to see their name every game and not even at games during other things outside the game. Also the team would get huge money from the sponsor so there is no down side to having a sponsor on teams jerseys.

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  19. Major advertising on Jerseys in the NBA and other sports in America will definitely change the dynamic of the jersey. Although corporations will be spending big money to just get a small patch, the benefit will most likely be very small. This is because the companies who can actually afford to put $80 million dollars for advertising are most likely well known. It may still draw some customers though as now people will associate these companies with their favorite sport teams. Ultimately the games will definitely change if big new advertisements become the center piece of jerseys in America.

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  20. I agree that this allowing more sponsors on the jerseys would be beneficial. The sports team would receive a lot more money and the sponsors would get great advertising for themselves. The look really shouldn't be that big of an issue, because it doesn't change they play or how you watch the game much. Instead money can go towards better stadiums, which would definitely enhance your experience while watching live. It would definitely seem to be a great decision to allow for more sponsorship on jerseys.

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  21. I do not think that having a sponsorship on the jerseys is completely necessary since it takes away from the city or team logo. I do not see how this would make watching a game better or completely entice someone to go by that product or service. Therefore making the profit relatively small with little benefit. However, more and more teams are starting to use sponsors on the jerseys so I doubt this trend will stop. I truly do not think it will hurt anyone if teams choose to get a sponsor, it just might not be as worth it as some think.

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  22. It’s incredible to this of how much money this one thing could generate, and the effects it would have. I’ve never been to a professional sports game, nor do I really watch them on TV, but I do know that it’s an expensive experience, and if those prices went down the sports popularity could skyrocket. It wouldn’t hurt anybody - after all, we’re surrounded by ads anyways, so putting them on sports jerseys doesn’t change that much in viewing pleasure. But it would allow so many fans to finally get to experience a game firsthand.

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  23. I don't know if having sponsorship logos on jerseys is necessary, depending on how large the logo is, like the Chevy one on the soccer jerseys, it draws away from who that team plays for, or their own personal logos, almost making it seem as though it's Chevrolet's team. I also don't know if team's drawing in more money off sponsorship logo's on team jerseys would make the overall experience of watching the game better or draw someone to buy that particular product. But, as more and more teams are starting to support this trend, I do believe it may allow the teams to have better players, build new arenas, etc. So, I can see the benefits but do not believe that it may be as big of an income market for the sponsor as they may hope, I think it would more or less just help the sport's teams.

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  24. As an avid soccer fan who watches quite a few of English premier soccer games and owns more than 20+ jerseys I like the idea of having large sponsor on jersey's. To me I think it adds something to the jersey, I think of it as almost part of the design. While the jersey looks good the company is also getting their business out their and the sports franchise is pocketing lots of money. For some teams in the soccer world the sponsor helps people recognize the team because they've had the sponsor for so long. Bringing this idea into the United States would be a great idea in my opinion, because the sponsor adds interesting designs to the jersey, the franchise makes lots of money, and the company gets advertising. In reality everyone is winning. Now of course there will be the haters saying that the sponsorship on the jersey's will ruin it, but I'd like to disagree. Go ahead and look at all of the English premier league teams jersey's. The logos or company names mesh right in with the jersey giving it a quality look.

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  25. I agree that having sponsorship on the jerseys would have a positive outcome. Not only would it benefit the specific company that is on the logo, but it would also bring forth extra money for the teams to utilize. The overall look of the jersey would not change in any major ways, along with the fact that changing the jersey wouldn't take away from people wanting to watch the game. Although many may say it's unnecessary, it could make the experience of the actual game itself a more enjoyable experience. This money could be utilized in many different ways including the ones you mentioned such as better stadiums and higher player salaries. Adding a logo would not change anything other than the look of the look of the jersey, and in doing so, would only be a minor change. This change would impact teams in a way that could bring forth a lot of extra money and overall cause a significant impact. Overall, allowing large corporations to have their logo on the jersey would be very beneficial.

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  26. In my opinon, corporate sponsorship on team jerseys seems like a great idea, both economically and socially. Some may argue that it is "selling out" or takes away from the teams identity, however I disagree. This visual sponsorship is benefiting all parties in my opinion. Those getting sponsored are able to get more demand for their product thru sports advertisements, and the sports teams doing it are gaining a huge increase in revenue that they can use to keep players happy, make merchandise & tickets cheaper, and overall create more profit for everyone. Plus in my personal opinion, I believe the sponsorship and variety/combination of logos on these jerseys could make for some cool collaborations between teams and businesses. Some designs could potentially look really good and have high demand, who knows? The bottom line is that in this situation, the positive externalities outweigh the negative by far. I dont see any potential way this idea could be a loss for anyone and I am also interested to see how teams & companies will make these jerseys look if they do this. This would also benefit other industries such as graphic and fashion designers, who would assist in designing these new jerseys. This would create a lot of opportunities and cool stuff in all the different markets involved with it and that is why they should strongly consider this idea more.

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  27. Jersey sponsorship is something I’d like to see done in US professional sports but only in smaller no intrusive amounts on the jersey. Premier league and other soccer teams seem to have it right in that the logos don’t overly crowd the jersey. The only reason I support this is that IDEALLY it would help the common fan. With jersey sales subsidized by corporations that sponsor them, the teams should be able to lower ticket prices and other costs to fans, or they could more easily fund new stadiums without as much taxpayer aid… But as we all know that likely wouldn’t happen as team organizations would hoard the money and add to their own pockets. Corporate sponsorship is necessary, currently, to the survival of a struggling WNBA teams which can’t field large incomes through their small fan bases. I’d like to see sponsorship spread so that teams dig less into the pockets of their fans, but it likely won’t turn out that way.

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  28. I think that having advertisements on sports jerseys is a very good idea and will generate a large sum of money for sports. It does not take away from the look of the jersey and if cities have advertisements of hometown companies it can represent something very cool. For example if the packers were to have a cheese company logo on their jersey because of the representation of cheese that is seen in Wisconsin it will generate the packers more money and will be a good way of representing Wisconsin.

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  29. It makes perfect sense to include advertisements on jerseys. The only possible negative in this situation is fans disliking the advertisements and the sales of jerseys decreasing. Even in this case, the profit from advertisements would likely outweigh the loss in jersey sales. Furthermore, I don't think sales would actually decrease because in Europe, fans actually get excited over new sponsorship and tend to buy jerseys from clubs that partner with their favorite brands. Because of this, believe advertisements are not only inevitable in the United States but should happen.

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  30. I agree that sponsorships are great for teams and the companies that sponsor the team. Teams get a great deal of cash, and the sponsors access a loyal fan base, which will buy their products. Both side benefit greatly, although the team by get a bad rap for "selling out".

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  31. I agree that advertisements or logos should be allowed on the jerseys of major American sports teams. NASCAR is a prime example of the benefits of implementing advertisements where millions of eyes are watching as I'm sure they make a load of money from them. Not having corporate logos on NBA jerseys just seems like wasted potential, because there is a large opportunity cost for making them blank.

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  32. With a logo/advertisement on a jersey would allow sports clubs to generate more money. This money can then be used to increase the atmosphere through a new stadium or seats. This will then generate more revenue shifting the demand curve to the right for tickets. By them not putting logos on the jersey is a wasted opportunity for sports teams to make money.

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  33. It doesn't impact the player's ability or the way they perform so there shouldn't be an issue with putting more advertisements on team jerseys. The only problem I foresee is that there could be a large competition over the spaces on jerseys that are available. Sooner or later, companies may want more space on the jerseys, however, as long as the name, number, team name are still visible on the jersey, and the advertising logos aren't too distracting, it doesn't appear that there will be, nor should there be, an issue. There is more revenue being brought in and there is no impact on the team's performance or the fan's experience, therefore making it a slam dunk.

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  34. I agree that it is a good idea to allow businesses to pay for advertisements on jerseys and would be a good way for teams to make an economic profit but there are some downfalls. One being that everyone who already has a sports team jersey would have to buy new ones and that´s not something everyone would want to do. Another problem is that there is a lot of tradition within certain teams like the Packers for example. I feel like the fans wouldn´t appreciate a sponsor on the front of their jerseys because of the deep love, and enthusiasm they have for their team.But, from an economic stand point this would be very beneficial.

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