New Orleans Pelicans Going Global, Poised To Cash In With Next Jersey Sponsorship Deal

The New Orleans Pelicans, as a team and organization, are quickly becoming a globally recognized and respected brand with legitimate hopes of contending for championships soon. Even though New Orleans is the NBA’s smallest media market, the team has an organizational foundation of champions in the front office and the core of a contender forming in the locker room. Now, the team is poised to cash in on that positive momentum through a new jersey patch sponsorship.

According to multiple team sources, the Zatarain’s jersey sponsorship deal will end after this season. The three-year partnership was a success for the team and the company. The Pelicans had a state-based sponsor with ties to the food New Orleans is known for while the Zatarain’s brand got their name on a winning playoff series sweep jersey and will forever be linked Zion Williamson’s rookie year.

Zatarain’s got far more value for its dollar than ever expected. In the first year of the sponsorship, Zatarain’s logo was in full view during the first-round playoff series sweep of the Portland Trail Blazers. The second-round series loss came against the Golden State Warriors, possibly the most-watched basketball team in the world at the time. That extra exposure in primetime after Zion Williamson was drafted only added value to the deal for Zatarain’s, as the Pelicans played a substantial amount of nationally televised games this season.

Those national appearances are expected to continue for the five years, potentially longer. With a new jersey sponsor looming, subtle tweaks to the jersey will follow. As Nike continues to tinker with the on-court uniform product, the new jersey sponsor will adorn some of the most sought after apparel in the world.

When asked if there has been any movement with the Pelicans jersey patch sponsor, sources said the team is “discussing that daily” but it seems they still need “to do some soul searching on what they want” out of a deal.

“We are actively looking for a new deal that would replace Zatarain’s as our jersey patch sponsor for the start of the 2021 season, “ said Senior Vice President of Communications Greg Bensel. “Zatarain’s was one of the most recognizable patches in the league and we look to continue that trend with our next partner.”

As for the sentiments in the front office, the team will be asking for increased community engagement. Executive Vice President of Basketball Operations David Griffin did not mention any other sports, but he did stress how the NBA will be giving more power to the players’ voices and helping to bring more social awareness through the game. The next jersey sponsor will have to be on board with those efforts.

Zatarain’s was a logical choice when the NBA’s jersey patch pilot program was introduced in 2017. The three-year partnership with the local food products company helped the Pelicans further their community outreach while also boosting the profile of Zatarian’s beyond the Gulf Shores. The Pelicans and Zatarain’s team saw great success with the annual Business of Basketball meeting and the Slam Dunk Recipe series. Zatarain’s also donated meals to the Second Harvest Food Bank charity, one for every slam dunk during the season. Zatarian’s also sponsored the #HomeTeamTV series, with the Facebook videos attracting over 600,000 views.

The late, great Tom Benson said when announcing the deal, “This is an opportunity for both the Pelicans and Zatarain’s to further expand our international reach. Gayle and I could not be more pleased to be able to partner with one of the most iconic brands in our community. Being from New Orleans, Zatarain’s has always been a part of my life and I am thrilled about our new partnership.”

The New Orleans Pelicans are now global. Zion Williamson being on the cover of the later NBA 2K game is a testament to his marketability. Him wearing the jersey with New Orleans on his chest is a testament to how big of an opportunity this small market city can be, and is, to the rest of the world.

Going by most every metric provided, the jersey sponsorship experiment has been a resounding success for both the NBA’s teams and the brands paying for jersey space. Brand exposure and viewership exceeded projections for the three-year pilot program. Zatarain’s is the second-most recognized patch in the NBA. The sponsorship patches are visible for almost 20 minutes during the average NBA broadcast. Fans wearing the authentic jerseys give the jersey patch sponsors even more visibility. Now, NBA teams are looking towards the next wave of sponsorship deals.

Many of the brands engaged in jersey sponsorship deals are doing business with the NBA’s teams for the first time. This new wave of corporate investment interest helped grow NBA sponsorship revenues 31% (from $861 million) last season. The second round of jersey sponsorship negotiations should bring more money into the Pelicans coffers. League executives expect the new deals and renewals will be for more money and longer terms.

Sports Business Journal reported that at least one team executive is expecting the value of patch sponsorships to rise +20% to 30%. New Orleans could reasonably start negotiations at 50% more than Zatarain’s currently pays. Considering the star power of Zion, New Orleans could see the valuation near-double.

The value of being in business and on the bodies of NBA athletes has not gone unnoticed. When the contract for a jersey patch was signed, Williamson was a mere pipe dream. Now Zatarain’s will always be the official jersey patch sponsor for Williamson’s rookie year. Those Zatarain’s adorned jerseys will be worn by fans for years. Zatarain’s enjoyed the exposure of that three-year spotlight, getting far more value than expected.

In negotiating and securing a new partnership, the Pelicans will have plenty of options for the next jersey patch sponsor. Several sources have mentioned looking for a company that operates regional facilities throughout the Gulf South in order to service a global industry. An investment into that investment gains the company a foothold with access to Zion Williamson through the jersey sponsorship.

The New Orleans Pelicans were one of the last of the NBA’s teams to secure a jersey sponsorship deal when the revenue experiment was implemented for the 2017-18 season. Now global brands will be calling them first when seeking a sporting sponsorship opportunity. Three years later, the team may have simply outgrown the local Cajun-style cuisine company now owned by McCormick.

Zatarain’s is still the star of local New Orleans kitchens, the star power of Zion Williamson will attract big-money brands with a broader reach worldwide. The New Orleans Pelicans will cash in with the initial deal and at the fan shop when the newest authentic Williamson jersey is released.