In a deal will shake up the NBA jersey patch market, the Nets parent, BSE Global, and WeBull, the online trading app, have agreed to a multi-year sponsorship deal which CNBC reports is worth $30 million annually. That’s 50 percent more than either the Los Angeles Lakers or Golden State Warriors reportedly got in their patch deals and perhaps three times what Barclays Bank pays annually for arena naming rights.
Neither the Nets nor WeBull disclosed the duration of the deal but recent jersey patch agreements have ranged from three to five years.
The deal also further cements the Nets status as one of the NBA’s most marketable brands.
WeBull is a New York-based rival of RobinHood, the more famous commission-free online trading company. It is owned by Fumi Technology, a Chinese financial tech company. Wang Anquan, its founder, once worked for Alibaba, the Chinese e-commerce giant of which Joe Tsai is executive vice chairman. However, a source tells NetsDaily that Tsai was not instrumental in bringing on WeBull.
Here’s the official announcement ...
The Brooklyn Nets and New York Liberty have entered into a global multi-year agreement with Webull, an independent, self-directed broker dealer focused on zero-commission online trading and in-depth market data. As part of Webull’s first-ever sports partnership, the company will have international marketing rights to promote its alliance not only in the New York market, but also outside the U.S. through expansive marketing, advertising, and digital activations.
Additionally, Webull will become the official jersey patch partner for the Brooklyn Nets beginning with the 2021-22 NBA season. Webull will also be featured on the jerseys of the Liberty, the Long Island Nets of the NBA G League, and NetsGC, the NBA 2K League affiliate of the Brooklyn Nets.
In addition to the patch, WeBull will become the “Official Online Brokerage of the Brooklyn Nets.” Webull will receive digital signage at all Nets home games at Barclays Center and integration across the teams’ digital channels. Webull and the teams will also working together on the teams’ STEM programs for underserved areas.
The announcement was timed to the Nets Media Day. Presumably, Nets players will be outfitted in WeBull-adorned jerseys Monday morning at Barclays Center.
It will be the first time that all four BSE Global teams will wear a patch from the same sponsor. In the past the Nets and the other teams had separate deals. WeBull will replace Motorola who signed a one-year deal with the Nets only last season. That deal was believed to be worth more than $10 million.
Jersey patches have become a lucrative source of NBA funding in recent years with big market teams with records of success — and national TV appearances — winning the biggest deals.
Last week, the Lakers announced an agreement with Bibigo, a South Korean food company known for its dumplings, sauces and frozen meals. That deal, reported the Los Angeles Times, is a five-year agreement worth more than $100 million. Like the Nets deal, it too extends to the Lakers other properties. The previous jersey patch record was a three-year, $60 million deal between the Warriors and Rakuten, the Japanese e-commerce company. Rakuten has said the arrangement was a big positive, with brand recognition rising 300 percent among U.S. basketball fans.
NBA jersey patch deals have sold for an average range of $7 million to $10 million per year, since being introduced as a new revenue stream in 2017, according to The Athletic. However, a recent change in NBA policy could lead to big jumps. The league now lets teams use their logos in international deals. Both the Nets and Lakers deal have international components.
“I am very excited to announce Webull’s first sports partnership with the Brooklyn Nets and become the official game jersey partner,” said Anthony Denier, CEO of Webull. “There’s no better way to celebrate our company’s New York roots, and we are looking forward to collaborating on initiatives that give back to the Brooklyn community.”
WeBull’s business has increased dramatically, along with Robin Hood’s this year ss the so-called “Reddit trade” grew. Online stock buyers, mostly millennials, using the two apps dramatically increased the price of depressed stocks like GameStop and AMC.
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