In a deal that will shake up the NBA jersey patch market, Nets parent BSE Global and online trading app WeBull have agreed to a multi-year sponsorship deal that CNBC says is worth $30 million. dollars per year. That’s 50% more than what the Los Angeles Lakers or Golden State Warriors would have gotten in their patch deals and maybe three times what Barclays Bank pays annually for arena naming rights.
Neither the Nets nor WeBull revealed the length of the deal, but recent jersey patch deals have lasted three to five years.
The deal also solidifies the Nets’ status as one of the most marketable brands in the NBA.
WeBull is a New York rival to RobinHood, the most famous commission-free e-commerce company. It is owned by Fumi Technology, a Chinese fintech company. Wang Anquan, its founder, once worked for Alibaba, the Chinese e-commerce giant of which Joe Tsai is executive vice president. However, a source tells NetsDaily that Tsai was not instrumental in introducing WeBull.
Here is the official announcement…
The Brooklyn Nets and New York Liberty have entered into a multi-year global agreement with Webull, an independent, self-managed brokerage focused on commission-free 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 United States through expansive marketing, advertising and digital activations. .
Additionally, Webull will become the official jersey patch partner of the Brooklyn Nets beginning with the 2021-22 NBA season. Webull will also be featured on jerseys for the Liberty, Long Island Nets of the NBA G League and NetsGC, the NBA 2K League affiliate of the Brooklyn Nets.
Along with 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 team digital channels. Webull and the teams will also work together on the teams’ STEM programs for underserved areas.
The announcement was timed for Nets Media Day. Presumably, Nets players will be outfitted in WeBull-adorned jerseys on Monday morning at Barclays Center.
This will be the first time that all four BSE Global teams will wear a crest from the same sponsor. In the past, the Nets and the other teams had separate agreements. WeBull will replace Motorola, which signed a one-year contract with the Nets just last season. This deal was worth more than $10 million.
Jersey patches have become a lucrative source of NBA funding in recent years with big market teams with hit records – and national television appearances – earning the biggest deals.
Last week, the Lakers announced a deal with Bibigo, a South Korean food company known for its dumplings, sauces and frozen entrees. That deal, the Los Angeles Times reported, is a five-year deal worth more than $100 million. Like the Nets deal, it also extends to other Lakers properties. The previous jersey patch record was a three-year, $60 million deal between the Warriors and Rakuten, the Japanese e-commerce company. Rakuten said the arrangement was very positive, with brand recognition increasing 300% among American basketball fans.
NBA jersey patch deals have sold for an average range of $7 million to $10 million a year since they were 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 allows teams to use their logos in international agreements. The Nets and Lakers deal has international components.
“I am very pleased to announce Webull’s first sports partnership with the Brooklyn Nets and to become the Official Game Jersey Partner,” said Webull CEO Anthony Denier. “There’s no better way to celebrate our company’s New York roots, and we look forward to collaborating on initiatives that give back to the Brooklyn community.”
WeBull’s business has increased dramatically, as has Robin Hood’s this year, so-called “Reddit commerce” has increased. Online stock buyers, mostly millennials, using both apps have dramatically boosted the price of depressed stocks like GameStop and AMC.