NBA updates rules on international sponsorship deals

The NBA has updated its rules on international sponsorship deals for teams, allowing them to partner with 10 entities outside the United States and Canada from the original three.

The update is part of its attempt to extend its reach in the international market and increase engagement with foreign fans. The expansion allows convenience for first-time partners to do business with the league. At the same time, the ITMP will help domestic partners expand their reach globally.

NBA VP of team marketing and business operation Stacy McWilliams said the league had changed its international marketing strategy since April. She added that its board of governors had been focusing on discussing their approach to the global market since then. Similar to the updates to international marketing policies, the NBA also introduced the changes to its sponsorship strategies in secrecy.

“The expansion has allowed [teams] to put forward a thoughtful approach in how they’re investing and what deals they’re looking at,” McWilliams said in a phone interview, as quoted by Sportico.

According to McWilliams, multiple ITMP partners had been secured by several NBA teams, with some franchises eyeing business partners from South Korea, Brazil, Australia and Germany.

With the updates, teams have been working to leverage revenues from partnerships with both international and domestic business entities. NBA teams may further reap benefits from jersey-patch sponsorships, which were extended last year following its introduction in 2017 as a three-year pilot program.

The new sponsorship rules have also expanded the jersey-patch program, allowing NBA teams access to new sponsorship and marketing moves. Despite the backlash over partnerships with Chinese corporations, companies from the country are still allowed to sign deals with NBA teams. The NBA allows its teams to partner with any international entities as long as the agreement is aligned with the league’s policies.