NFL gives the green light for ads on practice jerseys, but will it lead to team names and logos being replaced?

The NFL has given the green light for new revenue streams for individual franchises as the 2009 football season approaches.




The Denver Broncos, Detroit Lions, Green Bay Packers, Houston Texans and Tennessee Titans are among the NFL franchises that have publicly stated their interest in sponsorship deals that would put marketers’ names and logos on team practice jerseys.



In March, the NFL passed a rule that allows teams to pursue local sponsorship opportunities. This rule still has its restrictions. Companies have the chance to put 3 1/2 -by-4 1/2-inch patches on the shoulders of practice jerseys. No deals with companies involved in tobacco, firearms or alcohol, including beer companies are allowed. However, teams can make a deal with one company for the regular season and a different company for the possible postseason. Practice does not mean pre-season games, so the logos and advertisements will have limited view as most NFL practices are closed to the public and have limited media coverage.



The league now also permits teams to use their marks and logos with their respective state lotteries.



“Teams previously had been able to accept general advertising from lotteries but never had the ability to co-mingle marks,” said NFL Vice President of Communications Brian McCarthy. “Now the use of team name and logos is permitted on a scratch-off game provided it does not offer any betting scheme related to a sporting event. That’s the distinction – it has nothing to do with gambling on the outcome of a game.”



As reported, the Washington Redskins is the first NFL team with a lottery deal. The Redskins and the Virginia Lottery announced on Monday a $20 scratch-off ticket with the team’s logo and helmet.



A driving force in the NFL’s decision on the two matters was a chance to create new revenue streams, said McCarthy. As individual franchises have struggled, and the league itself laid-off 150 employees earlier this year, the turbulent economy has had serious affects on the sporting industry.



McCarthy said there is no chance of sponsored game jerseys in the NFL.



“We’ve been approached by numerous companies looking for that opportunity,” he said. “The NFL jersey is the most valuable real estate in sports, but we have no plans for that.”



The NBA lifted that restriction last week when NBA Commissioner David Stern signed off on allowing teams in the WNBA to place sponsor names and logos on the front of team jerseys for the WNBA season that began June 6.



The league’s Phoenix Mercury is the first team to incorporate company logos. A Tempe, Arizona based company, LifeLock, paid $3 million to display the LifeLock name prominently across the front of the jerseys. The deal also includes on-court signage, the logo on warm-ups and other team paraphernalia, and a free year’s membership to the identity-theft-prevention-company for all WNBA season-ticket holders valued at $110.



“We know the NBA will watch this and see what happens,” said Jay Perry, president and chief operating officer of the Phoenix Mercury. “Let’s face it: We’re taking our most valuable asset, the players, and connecting it to another brand.”



President and CEO of the NBA’s Phoenix Suns Rick Welts said the deal was driven by the current economic environment and the need to generate more revenue.



“We’d be kidding if that wasn’t the primary objective,” he said.


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