Which NBA franchise Sponsors are performing best on the market? | Saxo Bank
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Summary: We explore the best and worst-performing sponsors based on their respective share price performances over the last month, as well as the entire season.
With the 2022 NBA Finals between the Golden State Warriors and the Boston Celtics entering its final stretch, the eyes of the major league sporting world will be transfixed on the NBA. This can only be good news for the major sponsors of the Warriors and the Celtics. However, it raises the question of whether all sponsors across the NBA feel the benefits of their affiliation with the franchise.
As the dust settles on another exciting NBA campaign, it's worth reflecting on whether ludicrous NBA sponsorship deals do substantially affect businesses positively. We’ve used Saxo Bank data to look at whether companies that enter NBA sponsorship deals are benefitting from their broad-based exposure in the third most popular major league sport.
The NBA itself has seen sponsorship revenues spike considerably in recent seasons. During the 2020-21 season, for example, the NBA raked in a record-high $1.46 billion in sponsorship earnings following a slew of new deals. Sports partnerships consultancy firm IEG revealed that the tech sector alone was contributing around $115 million per year alone in new sponsorship spending.
Below, we explore the best and worst-performing sponsors based on their respective share price performances over the last month, as well as the entire season.
The NBA sponsorships that performed best and worst this season
Let’s check out the top three and the bottom three performing equities from the list of 2021-22 NBA franchise sponsors:
Top three best-performing NBA franchise sponsors in the last 12 months
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Chevron (New Orleans Pelicans) – 73.07% up year-on-year (YoY)
Energy corporation Chevron has been an official sponsor of the New Orleans Pelicans since 2013.
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Barclays Bank (Brooklyn Nets) – 63.15% up YoY
In 2007, Barclays agreed to sponsor the new arena housing the Brooklyn Nets, forking out $20 million per annum in a 20-year deal. The recession 12 months later put paid to their full sponsorship plans, but the British bank still pays $10 million a year in annual sponsorships today.
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Mattress Firm Inc. (Sacramento Kings) – 45.16% up YoY
America’s largest mattress specialty retailer saw its multi-year sponsorship partnership with the Kings renewed for the 2021-22 NBA season. It remains the Kings’ “Official Sleep Partner”.
Three worst-performing NBA franchise sponsors in the last 12 months
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Eastside Distilling (Portland Trail Blazers) – 74.05% down YoY
In November 2021, Eastside Distilling Inc. penned a three-year sponsorship deal with the Trail Blazers, becoming the franchise’s new “Spirits Partner”.
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Sharecare Inc. (Atlanta Hawks) – 71.87% down YoY
Digital health firm Sharecare entered a multi-year sponsorship arrangement with the Hawks in 2017-18, with its logo appearing on Atlanta jerseys.
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PayPal (Phoenix Suns) – 67.16% down YoY
Digital payments portal PayPal became the Suns’ inaugural jersey patch sponsor. In doing so, PayPal becomes the official payment partner of the Suns.
Disclaimer
All trading carries risk. Any past performance stated is not an indication of future performance.
Source: The companies that benefit most from NBA franchise sponsorship deals | Saxo Group (home.saxo)
