NHL still trying to figure out sweater ads
According to a league executive, NHL fans shouldn’t expect to see their favorite teams sell advertising space on the players’ sweaters just yet.
Eighteen NBA franchises have now inked deals with other businesses to place those corporations’ logos on player jerseys, and the suspicion that NHL teams would start to follow suit has risen. That curiosity should be put on ice for now after comments made by the league’s chief revenue officer.
Speaking in a panel at the 2017 Stadium Sports Marketing Symposium, Keith Wachtel was asked about the potential new revenue stream for NHL franchises. Wachtel, who is also the NHL’s executive vice president of global partnerships in addition to being the chief revenue officer, made it clear that NHL sweaters won’t become advertising space anytime soon.
“Right now, there are other ways that we see to bring in additional revenue streams without having to place a logo on the jersey,” Wachtel stated.
Wachtel didn’t rule it out altogether, however. He did say that the NHL would be open to it under the right circumstances. He also gave some insight into what those circumstances would be.
Wachtel referred to his own experience watching NBA games which feature teams who have sold jersey ads, and denoted that during the broadcast, he hasn’t been able to see the ad. That’s either a negative or positive, depending on perspective.
For fans who are hesitant to embrace change, a sweater ad that isn’t obvious when taking in games is ideal. Adding new revenue streams only makes sense if it doesn’t detract from existing sources of revenue, so turning players into on-ice billboards with huge or poorly-placed ads that will alienate such fans would be a problem.
On the other hand, a sweater ad that can’t be seen is a poor ad. Sponsors buy the ad for the expressed purpose of having people see it, making a sweater ad that goes unnoticed a waste of marketing dollars for the sponsors.
The NHL does have some history with the idea. During the NHL’s World Cup of Hockey in 2016, player sweaters featured the logo of event sponsor SAP on the sleeve. Technically, all NHL player sweaters already feature at least one ad.
Adidas, which is in the first year of its apparel contract with the league, emblazons its logo on every sweater that is worn on the ice during every NHL game. The unfamiliar territory for the league is how to handle additional ads.
A primary consideration is uniformity among its 31 franchises. The league will likely want to mandate the placement and size of the ads. Striking that balance between not turning players into billboards on skates while simultaneously delivering some actual exposure to the companies that pay for the ad will require conversation and research.
Additionally, any new revenue streams automatically trigger collective bargaining agreement questions. If many NHL franchises sell sweater ads, it’s likely that the NHL Players Association will argue that revenue should be split, like it has with government subsidies. Again, that’s a matter of conversation and research that will have to be done.
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Sweater ads could still be a goal for the NHL. Considering Wachtel’s comments and the other circumstances of the situation, the puck seems to be slowly creeping towards the back of that net.