StubHub takes on Ticketmaster and becomes the first jersey sponsor in NBA history

Last month, the National Basketball Association (NBA) announced that jersey sponsorships would be permitted as part of a three-year pilot program, starting with the 2017-18 season. As of this week, we now know the name of the first brand to appear on an NBA team’s shirt — ticketing platform StubHub will appear on the top left of Philadelphia 76ers’ jerseys from the beginning of next season.

This not only represents a milestone moment for the NBA, but for U.S. sports across the board, as permanent third-party branding has hitherto been banned from the National Football League, Major League Baseball, and National Hockey League.

Above: StubHub: Philadelphia 76ers

Image Credit: 76ers

That the first shirt sponsorship is a major online company is a sign of the times, but StubHub, specifically, is notable for one chief reason.

As the official primary and secondary ticketing partner of the NBA since 2007, Ticketmaster has been closely aligned with U.S. basketball for a while. However, StubHub has long criticized Ticketmaster for the way it controls secondary market sales, when people resell tickets to live events they can no longer attend.

Founded out of San Francisco in 2000 by former Stanford Business School students and investment bankers, StubHub became a major force in the secondary ticketing market space, which led to its eventual acquisition by eBay in a $310 million deal in 2007. And earlier this year, StubHub announced plans to take on Ticketmaster with an all-new platform for both primary and secondary tickets and called on the Philadelphia 76ers as its official launch partner. With a shirt sponsorship now in tow, the duo have become embroidered soul mates.

“This marks another groundbreaking first for the Philadelphia 76ers and StubHub,” said Philadelphia 76ers CEO Scott O’Neil in a press release. “Our brands are now inextricably linked as we create lifelong memories for our fans in Philadelphia and around the world. Our partnership with StubHub continues to generate progressive and forward-thinking platforms created to improve the fan experience and advance our industry.”

Soccer fans will be familiar with logos on players’ shirts — this practice has long served as an extra revenue stream for clubs around the world. That it’s now infiltrating mainstream U.S. sports will be viewed as a sad day by some, but in many ways it’s surprising it hasn’t happened before now — the sponsorships could be worth millions of dollars in additional income.

“Jersey sponsorships provide deeper engagement with partners looking to build a unique association with our teams and the additional investment will help grow the game in exciting new ways,” NBA commissioner Adam Silver said during the original announcement last month. “We’re always thinking about innovative ways the NBA can remain competitive in a global marketplace, and we are excited to see the results of this three-year trial.”