During the 2023-24 NBA Season, EDO noted that certain brands got an outsized boost from placing their ads in the league’s games. New Balance’s spots were 330% more effective than commercials from the average NBA advertiser, while Denny’s (211%), plaque-psoriasis medication Bimzelx (210%), Temptations cat treats (197%) and Hennessy Cognac (165%) all performed better than most.

That brand success is part of the reason why, according to SponsorUnited data, overall NBA team sponsorship revenue has risen to $1.5 billion—up 7% from a year earlier and 77% from during the Covid-19 pandemic. 

While the launch of an in-season tournament drew 58 sponsors alone, additions ranging from an LED court at NBA All-Star weekend and global games in Paris, Mexico City and Abu Dhabi provide sponsors with new opportunities to check into the game. Combined with the brands that young NBA players are bringing into the league as part of collegiate name, image and likeness rights deals that convert to sponsorships, those initiatives have created a deep bench of brands for media partners to court.

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“The last four years of NBA draft picks have grown up doing endorsements before they even have gotten to the leagues, carrying over some of those relationships as they enter the league,” said Bob Lynch, founder and CEO of SponsorUnited. “People were nervous about players doing more endorsements and shifting away from team sponsorships, but it’s been just the opposite—it’s become an ecosystem where brands can dip their toe in the water, work with a handful of players, A/B test different content and execution, then scale and bring it to their respective teams or the league.”

Broadcasters’ share of brand marketing partners has been substantial. Between ESPN and ABC, Disney’s NBA coverage has drawn more than 450 brands into the fold, according to SponsorUnited. Comparatively, Warner Bros. Discovery drew 200 across its TNT network and Max streamer. 

With 78% of NBA advertisers on linear networks also advertising on the league’s streaming broadcasts, SponsorUnited sees more opportunity for that hesitant 22% to join streaming channels if Amazon and Peacock play a larger role. While EDO’s Grover said live sports on linear TV is still a powerful force, SponsorUnited’s Lynch noted that streaming opens up ad and sales opportunities that just don’t exist in linear broadcast.

“What streaming brings to the table is targetability,” Lynch said. “The value of Amazon Prime Video is the ecosystem that they bring to the table—the league wants to be able to tap into more direct-to-consumer opportunities within their partnerships … [and] if you’re just working at a national broadcast level, that becomes much more challenging to do.”