While a number of teams have announced advertisement deals to put patches on their jerseys, the National Basketball Association champion Warriors were the big domino people around the league were waiting to fall. "This was not the biggest deal that we were offered".
Given the exposure of the team, Rakuten's logo should generate $32 million to $37 million in equivalent advertising this season from TV, social media, video games and jersey sales, according to Eric Smallwood of Apex Marketing Group, a sponsorship-evaluation firm.
A cool $60 million from Rakuten will go a long way to alleviate the massive tax Golden State will have to pay this season and perhaps the ones to come with this star-studded roster.
Rakuten, which owns Ebates, Viber and Kobo, will do more than just sponsor Golden State's jerseys. "We felt in order to grow out global vision, we had to be aligned with a global brand". In July, its name started appearing on FC Barcelona's kit in a deal worth $235 million over four years.More news: Teva Pharmaceutical Industries (NYSE:TEVA) Sees Significantly Higher Trading Volume
This will be the first season that the National Basketball Association allows jersey advertisements, which are restricted to 2.5 inches by 2.5 inches on the left shoulder of the jersey. "Like FC Barcelona, the iconic soccer club we partner with, the Warriors are innovators in their sport that have helped create a more handsome game through a distinct style of unselfish, teamwork-oriented play".
"We are thrilled to partner with the Golden State Warriors, one of the most successful organizations in sports today and one that shares our passion for positivity, teamwork and optimism", said Hiroshi Mikitani, Rakuten's founder and CEO.
The Warriors are the 14th National Basketball Association franchise to sign a uniform endorsement deal. Considering the level the Warriors have ascended in recent years with two National Basketball Association titles in the last three years (and one elusive win away from a three-peat), the Warriors were able to command top dollar for their advertisement deal. "We signed a big deal with an worldwide player and, in turn, we've boosted the value of the National Basketball Association and the Warriors outside of North America". The Rakuten Kobo eReaders will become the Official E-Reader Partner of the Warriors.
Of course, there is more to the deal than simply adding a path on the uniforms.