NBA Free Agency. What Brands Need to Know.

The 2018-19 NBA season may have concluded a few weeks ago; but there’s no such thing as an offseason when it comes to the league. Free agency doesn’t officially begin until this Sunday at 6:00pm ET, but we've already seen game-changing developments shaping this truly historic summer. 

An unprecedented list of marquee players are contemplating their next moves, including the NBA Finals MVP. A devastating injury to an all-world player on the game’s biggest stage sent shockwaves throughout the league. The best big man in the game has joined LeBron James in LA, while one of the most buzzed about prospects in years was selected by New Orleans to replace the aforementioned big man at the NBA Draft. Ultimately, the league is looking at a seismic shift in its landscape.

The impact free agency has on brands involved in the sport cannot be ignored. League sponsors such as Tissot, Mountain Dew, American Express, New Era and others benefit from the trending conversations. Additionally, team, jersey, arena and player sponsors stand to see dramatic changes to the return on their investments. 

The buzz, rumor mill and debate are at a fever pitch, and we at MWWPR were fascinated by the conversation, so we partnered with our friends at Quid to take a deeper look. 

NBA Conversation in Traditional Media: 6/26 - 6/28

The League’s Next Super Team

Look no further than what’s transpiring out West. The Lakers signed one of the greatest players of all time in LeBron James; however, they also missed out on the Playoffs. The last time the NBA Playoffs didn’t feature LBJ? 2005. The last NBA Finals with no King James? 2010. LA partner brands, including jersey sponsor Wish, missed out on significant exposure and presence when the games mattered most.

On June 17, the team’s – and its sponsors’ – fortunes changed, as the first major offseason shoe dropped. The trade that brought Anthony Davis to the purple and gold has the makings of the league’s next superteam. Legal sportsbooks across the country reacted swiftly, elevating the Lakers to favorites to hoist the Larry O’Brien trophy next June. 

Brands have wasted no time responding, as not long after AD’s landing in Los Angeles, Ruffles inked him to the first-ever chip deal in NBA history.

Finals MVP on the Move? 

The Toronto Raptors had consistently come up short in the postseason. Enter Kahwi Leonard. His addition resulted in the first championship in franchise history, much to the delight of Sun Life Financial, ScotiaBank, and Leonard’s newest brand partner, Canada-based Cargojet. Winning helps teams sell tickets, merchandise and sponsorships, but it also attracts talent. If Leonard were to move from The North to, let’s say, the West, the impact on the Raptors franchise would be devastating.

Over the next week, teams will be vying for Leonard in hopes their franchise can be catapulted to NBA supremacy in similar fashion to the Raptors. Leonard’s partner New Balance will be anxiously awaiting his next move. The last time an NBA champion wore New Balance sneakers? 1988, when James Worthy (also a Finals MVP) helped the Lakers defeat the Pistons. Fast-forward 20 years. New Balance re-entered the highly-competitive basketball market by signing Leonard and subsequently hit the jackpot, netting both a World Champion and Finals MVP. According to Quid, Leonard has been the most-talked-about free agent since June 19. A move to Los Angeles would put Leonard in a major market for the first time in his career, something New Balance, and other brands, can take advantage of. 

Warriors Free Agents - Sign and Sit?

The Golden State Warriors are preparing to move into the brand new Chase Center in San Francisco for the upcoming season; however, they’re assured to do it without the on-court presence of two of the game’s most marketable stars. Kevin Durant and Klay Thompson, who both suffered devastating injuries during the NBA Finals, are also free agents this offseason. 

Brands associated with the players themselves, the Warriors and other potential destinations all need to closely evaluate how they approach the 2019-20 season, when there's a serious chance neither will step foot on the court. Chinese sneaker brand Anta has invested heavily in Klay Thompson as its priority sneaker client. In such a competitive marketplace, how do they plan to approach his time rehabbing? For Durant, there are few more recognizable players globally. Brands in the KD business, including Nike and Master & Dynamic, will need to alter plans for next season, as he will inherently be less visible as he recovers. On the other side, even if both players were to return to Golden State in free agency, will Chase and jersey sponsor Rakuten see as much value in their team partnerships if they aren’t competing?

New York, New York

In the analysis conducted by Quid and MWWPR, Durant, despite his injury, is recognized as the marquee free agent of 2019. He has received the most editorial coverage (~9% of the overall conversation) and social engagement (17% of total sharing) amongst all NBA players from 6/19 to 6/26. Should he decide to leave, the New York Knicks and Brooklyn Nets lie in waiting with max contract cap space and the appeal of the marketing capital of the world. Currently the NBA’s most valuable franchise at over $4 billion, the Knicks have key partnerships with brands including KIA, Delta and jersey sponsor Squarespace. If the Knicks are successful in luring him to Madison Square Garden, these and other corporate partners will need to carefully evaluate how to leverage their team assets with arguably the best player in the world on the sidelines. 

Top Players by Traditional Media Story Count: 6/26 - 6/28

Across the bridge in Brooklyn, the Nets have also placed themselves at the center of the free agency discussion with their pursuit of Durant and Kyrie Irving. If Brooklyn’s dream team comes together, it would be an ideal scenario for partners like infor (jersey patch sponsor), Stoli, New Era, Red Bull and FanDuel. All could reasonably expect much higher visibility on the national stage with the potential addition of multiple superstars, a golden opportunity for them to capitalize on should they execute strategically. 

The Zion Effect 

Last week’s NBA Draft continued to sculpt the league offseason with one of the most highly-anticipated and most-marketable talents to ever enter the league, Zion Williamson, going No.1 to New Orleans. 

Like with many top NBA draft picks, a shoe deal looms. However, for Williamson, the decision on which of the six athletic apparel and footwear companies currently courting him would be category-shifting. When Williamson suffered a sprained knee in February, it became an instant crisis for Nike, the official footwear partner of Duke University. Many watching the injury, including even President Barack Obama, blamed Zion’s Nike Kyrie 4, which tore in half on the injury play, as the root cause.

Williamson eventually returned to play the ACC Championship and NCAA Tournament (in all-new Nike Kyrie 4 sneakers), but the question remains - now that’s he’s turned pro, who will sign Zion? Adidas, Under Armour, Puma and others are likely salivating at the opportunity to not only secure a young, charismatic, athletic star but also to add a priceless asset in the sneaker wars against Nike. Some think Zion is poised to ink the first $100 million rookie shoe contract, which would easily eclipse the current record of the $87 million deal LeBron James signed with Nike in his debut season.

One thing is for certain… Williamson’s opportunities only begin in the footwear category. As the No. 4 most-discussed player in our analysis, Zion could also be a game-changing prospect for a brand like BodyArmor - which continues to add to its sports portfolio in an effort against market leader Gatorade. And with the current “King of New Orleans,” Drew Brees, recently endorsing Williamson as the one who will take his torch, team sponsors like Zatarain’s, whom the Pelicans have on their jersey, and Smoothie King, the title sponsor of their home arena, have to be considering him as a potential ambassador. 

Maximizing Your Opportunity

What we all love about sports is its unpredictable nature. Things can change, for better or worse, in an instant. The right partner, with its finger on the pulse of the ever-evolving landscape, can help you navigate catastrophic injuries, roster turnover and transform Woj bombs into engagement opportunities.

MWWPR’s Sports and Entertainment team has 100+ years of combined experience helping brands maximize their investment in sports - from the NBA, MLB, NFL and NHL to the FIFA World Cup and Olympic Games. 

Like you, we’ll be watching this weekend and throughout the rest of the summer as the puzzle pieces fall into place in this historic NBA offseason. And when the dust settles, we’ll be ready to help our current and potential client partners align on strategies and action plans that tell the right stories to the right audiences through the right channels at the right time. It’s what we do best. 

For more information on MWWPR’s Sports & Entertainment practice, visit us at www.mwwpr.com or contact me at [email protected].