The LA Lakers are one of the most popular sports franchises across the globe. With that tremendous recognition comes abundant opportunities to profit off their legendary brand. The Lakers are now working toward a crucial $200 million decision ahead after this season.
Lakers’ patch partership with Wish
Before the 2017-18 season, the NBA made the game-changing move to introduce its patch program.
It allows companies to place their logos on the shoulder of each player’s jersey. The Lakers immediately jumped at the opportunity, landing a three-year deal worth north of $30 million with Wish, a California-based e-commerce platform.
LA has profited significantly from the partnership that has helped further globalize its brand. All 30 teams in the league have benefitted from the program that creates around $150 million total in revenue.
As the Lakers near the end of their patch contract with Wish, the team has made a notable move to help navigate through their upcoming nearly $200 million decision.
The Lakers have their next big move in sight and it’s worth hundreds of millions of dollars
The Lakers have remained one of the most valuable sports franchises across the globe.
LA is heading toward the end of their patch contract with Wish that ends after the 2020-21 campaign. On Wednesday, the franchise announced that they had formed a partnership with firm Sportfive as a third-party agency to locate a new deal for next season. (H/T CNBC)
“We needed a company that has global reach and the ability to connect with decisionmakers across the globe, and that’s what we feel Sportfive brings to us,” Tim Harris, the Lakers’ chief operating officer said. “There is probably no sponsor of the Lakers that is literally closer to the team than the name that’s on the jersey patch, so it has to be a company that fits our culture and what we believe in. It’s not just about the economics.”
Sportfive has worked with other notable clients such as Soccer clubs Chelsea FC, Atletico de Madrid, Borussia Dortmund, and esports business Riot Games.
The press release also detailed that the Lakers’ jersey patch’s estimated sponsorship media value was $199 million for the 2019-20 season. The team’s championship success played a significant part in that financial uptick. That figure completely overshadows the initial value of the $12 million to $14 million range with Wish.
The franchise is moving full steam ahead in its search for a more lucrative deal, which brings into question the future of its current patch partnership
Is Wish still an option?
The question now becomes whether the Lakers will find another partner for their next patch program deal.
Given the franchise’s global popularity, there will be many companies eyeing a partnership. Despite that, team chief operating officer Tim Harris stated that LA is still in discussions with Wish.
“This is not just an ego buy for someone,” Harris said. “It’s how they’re able to take the exposure that they’re receiving on that Lakers jersey and whether they want to build their own brand or move their own product for their service. It’s about what they want to get out of it and how can we help them through this opportunity.”
The door is certainly still open for Wish to garner a new deal with the Lakers, but the organization will operate with their best interest in mind. The franchise will likely take their time over the next several months to find another lucrative patch contract.