Making it a lot easier for a sponsor to say YES

The buzz lately in the NBA has been about the league soon allowing corporate sponsors to have a patch on the players' jerseys. The NBA Board of Governors could hold off no longer given the pressure to increase team revenues. It is estimated that the new advertising will raise $100 million.

While advertising on team uniforms is becoming very common in professional sports, some teams haven't been able to reach agreement with potential sponsors due to cost. After all, in a league allowing uniform advertising, if a team has no sponsor patch, it's probably safe to say that the cost is higher than sponsors are willing to pay. There very well may be corporate sponsors interested in the team, just not at the asking price.

This is a perfect scenario for the financial muscle of corporate trade through Evergreen Trading. Just like excess inventory or surplus real estate where there is a gap between the price the seller wants and what the buyer is willing to pay, corporate trade can bridge that gap through the placement of advertising on behalf of the sponsor.

Say the team wants $1MM for the uniform sponsorship and the potential sponsor believes it to be worth – or can only pay – $500,000. Evergreen Trading can pay the additional $500,000 to the team by placing a pre-determined portion of broadcast, print, outdoor, or digital advertising for the sponsor. The advertising placed by Evergreen Trading needs to have nothing to do with the team or the games – just part of the normal advertising being done to promote the sponsor's products or services.

The amount of advertising needing to be placed in order to raise the $500,000 depends upon the type of advertising, rates, schedule, and all the normal market conditions that effect price. But, the advertising placed by Evergreen Trading will be the same as that placed by the sponsor's advertising agency or in-house marketing people without Evergreen Trading. No compromise. No additional fees. The difference is that the agency is unlikely to write a $500,000 check to bridge the gap needed to execute the sponsorship. We will.

In fact, this idea could be taken further to the point of providing a no cost sponsorship for the advertiser. By Evergreen Trading placing additional advertising on behalf of the corporate sponsor, the entire sponsorship cost could be zero. The entire million dollar cost could be paid entirely by Evergreen Trading! How's that for a new twist on financing professional team sponsorships?

About Mike Lake

Mike is the Senior Vice President of Marketing for Evergreen Trading. When not playing jazz trombone he is probably obsessing about writing content that will capture the attention and interest of business people and fellow learning junkies everywhere.

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