Squarespace Plays Madison Square Garden With New York Knicks Marketing Alliance
By Barry Janoff
October 10, 2017: The New York Knicks have joined the ranks of NBA teams with jersey-patch sponsors, but move toward the head of the financial pack via a three-year deal with Squarespace.
The alliance with Web site designer Squarespace also includes marketing, media support and community endeavors through Madison Square Garden Co., which owns the Knicks, as well as the WNBA Liberty, NHL Rangers and G-League Westchester Knicks.
Although financial terms were not shared, the value is estimated to be among the high-end of recently signed NBA jersey logo deals, likely $10-$12 million annually.
"We are thrilled to welcome (Squarespace founder and CEO) Anthony Casalena and the entire Squarespace team to the Madison Square Garden family,” David O’Connor, Madison Square Garden Co. president and CEO, said during a media event in the Garden.
“We share many things in common: teamwork, hard work, excellence, first-class customer service, serving and engaging local communities and giving back. This partnership will have tremendous impact on both of our individual businesses," said O’Connor.
Among the activation, Squarespace will have "meaningful exposure" around the Garden, on MSG Networks and with the Knicks, Rangers, Liberty and Westchester Knicks.
In addition, Madison Square Garden Co. and Squarespace said they would launch the Make It Fund, which will "provide financial support and give digital advertising opportunities to local small businesses that use the Web site platform."
(Full disclosure: NYSportsJournalism's network of Web sites is powered by Squarespace.)
Casalena said he founded Squarespce in his dorm while attending the University of Maryland but moved to New York to expand and develop the business.
"I grew up in Maryland but have spent the last ten years in New York building Squarespace,” Catalan said during the media event. “One of my iconic memories is exiting Madison Square Garden through Penn Station and walking out into the incredible kinetic energy that this city has.
"That is why Squalesapace is here. This venue has always been part of it," he said.
The Knicks become the 17th NBA team to have a jersey-patch deal, which begins this season under the league’s three-year trial period.
Topping the financial list is the Golden State Warriors pact with Rakuten, valued at $60 million over three years.
The Los Angeles Lakers signed with e-commerce firm Wish, a three-year deal that industry analysts put at $12-$14 million annually.
The Cleveland Cavaliers signed with Goodyear for $30 million over three years. The Boston Celtics have a three-year deal with GE valued at $24 million.
The average of the other NBA jersey-patch deals to date fall in the $3-$5 million range annually.
When the NBA Board of Governors approved and unveiled its three-year jersey logo plan in April 2016, commissioner Adam Silver said the move could generate approximately $100 million in revenue for the league. But he also indicated it could be much higher.
"We still don't know how much money this will generate," Silver said at the time.
The jersey patches coincide with the start of Nike's eight-year, $1 billion deal as the NBA's official on-court uniform provider.
Teams with jersey-patch deals now include:
• Atlanta Hawks (Shareware)
• Boston Celtics (GE)
• Brooklyn Nets (Infor)
• Cleveland Cavaliers (Goodyear)
• Denver Nuggets (Western Union)
• Detroit Pistons (Flagstaff Bank)
• Golden State Warriors (Rakuten)
• Los Angeles Lakers (Wish)
• Miami Heat (Ultimate Software)
• Milwaukee Bucks (Harley Davidson)
• Minnesota Timberwolves (Fitbit)
• New York Knicks (Squarespace)
• Orlando Magic (Disney World)
• Philadelphia 76ers (StubHub)
• Sacramento Kings (Blue Diamond)
• Toronto Raptors (Sun Life)
• Utah Jazz (Qualtrics)
All patches will be 2.5 x 2.5 on the left side, with a Nike Swoosh logo on the right side.
The Charlotte Hornets will wear a Nike division Jordan Brand as the team is majority owned by Michael Jordan.
Jerseys with sponsor patches will not appear on versions sold at retail outlets but teams have the option to sell the jerseys with sponsor patches in their own retail locations.
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