Brooklyn Nets’ Kevin Durant # 7 shoots the ball against the Washington Wizards in a preseason game on December 13, 2020 at the Barclays Center in Brooklyn, New York.
Nathaniel S. Butler | National Basketball Association | Getty Images
The Brooklyn Nets landed one of the National Basketball Association’s top jersey patch sponsors on Monday with New York-based brokerage platform Webull, the parties told CNBC.
Terms of the jersey patch deal were not announced, but people familiar with the deal told CNBC it was a multi-year pact that pays the Nets around $ 30 million. per year. Since the NBA started its jersey patch assets in the 2017-18 season, the Golden State Warriors had the most expensive deal at $ 20 million per season with Japan-based e-commerce company Rakuten.
Webull is a New York-based online trading platform and held by The Chinese holding company Fumi Technology. It competes with online brokers like Robinhood with its commission-free offers and is valued at $ 1 billion, according to PitchBook.
With the agreement of the owner of the Nets, BSE Global, Webull obtains the Nets jersey crest and the local and international rights to exploit the intellectual property of the Nets outside of North America. Webull will also have a jersey presence on other ESB properties including New York Liberty from the WNBA, Long Island Nets from the NBA G League and the NBA 2K esports team.
Webull replaces Motorola, who signed a one-year contract with the Nets for the 2020-21 season. The team used the deal to make up for money lost due to the pandemic, which cost teams 40% of revenue due to fan restrictions. ESB CEO John Abbamondi called the deal a “transformative”, adding that the two companies have matching consumer bases.
âWhen you look at what Webull is doing to democratize access to financial markets for a young generation of investors that fits our young fan base well,â Abbamondi said. “We have very similar DNA in terms of our customers and the cultures of our companies.”
Brooklyn Nets patch with online finance company Webull
Source: Brooklyn Nets
The Nets become the latest NBA team to strike a patch deal, joining the Portland Trail Blazers, who landed the NBA’s first cryptocurrency jersey patch via the StormX crypto platform. And last week, the Minnesota Timberwolves landed a patch deal with digital security firm Aura even though the franchise is in disarray during a change of owner.
Companies are looking for jersey patches from teams that have the best national television exposure, big social media impressions, and star players with significant following numbers. The Nets have three with Kevin Durant, James Harden, Kyrie Irving – and having a former All-Star in Blake Griffins helps too.
To make the asset more attractive, the NBA increased the size of the patches and allowed teams to exploit global rights. Abbamondi said the international component of the deal has increased interest in the patch.
âWe were looking for someone who serves the international part of this as well as the uniform part,â Abbamondi added. “We found this with Webull.”
Like other NBA jersey patch deals, Webull will also get digital signage at Barclays Center and work with the Nets to improve STEM programs for underserved communities across town. The deal with the Nets is the first sports partnership for Webull.
âWe have been operating under the radar for the past few years,â said Denier, CEO of Webull. âThe average person and maybe the average investor has never heard of Webull in many cases, but we have become a big player in the brokerage world. It’s our exit party – we are raising our flag. in the ground to let the world know we’re here. And that works well with the Nets. “
The Nets join other NBA teams who will open a training camp this week to prepare for the 2021-22 season. Financially, Abbamondi said the team was approaching a better year after the pandemic damaged revenues. The Nets made $ 280 million in revenue for the 2020-21 season, up from $ 304 million the year before, according to Forbes.
âIt’s no secret that 18 months have been difficult for the live sports industry, but we are excited about our future,â Abbamondi said. âWe plan to be at full capacity all season and be a fully vaccinated arena.
âAs we sit here today, we are number two in sales of new season tickets, and our partnership business is also very strong,â added Abbamondi. “We feel good about the business, regardless of the headwinds that Covid continues to present, but we feel good about our situation, all things considered.”