For years American sports leagues have held out against one trend that has been a norm in European sports: sponsor logos on jerseys. While everyone sees teams in Europe rock some sponsor or other, and even American leagues like the NBA or WNBA, the NFL and MLB have stuck to the norm. Why such resistance? Well, it all comes down to the cultural difference. In Europe, that’s part of the culture, but not particularly in the U.S. American fans are used to seeing the jersey clean, entered around the player’s name and number and the team name.

It’s also tradition; the numbers play a huge role, and for fans, jerseys represent the players. This means that adding logos seemed it would muddy the waters. It could take away from the authenticity of the game. Plus league policies like the NFL’s strict ban on jersey ads kept things as they are. Until recently, that is!

In 2017, the NBA was the first American league to allow a small sponsor patch on a jersey. They broke the tradition, and fast forward to 2023, MLB also followed suit—it takes just one to take a step. Because there is one thing they realized—the opportunity to earn more revenue. So it looks like the old days of sponsor-free jerseys might be far behind everyone now.

Major League Baseball embraces jersey sponsorships

In 2023 MLB took a major step and allowed sponsor patches. This new rule, part of the collective bargaining agreement with the MLB Players Association, opened up various fresh revenue streams and gave advertisers a huge spotlight. It didn’t take long for teams to board the ship. Seven teams got deals before the start of the 2023 season itself, and several teams followed in 2024. The patches are mostly positional on the sleeves. By the end of 2023, a staggering 23 of 30 MLB teams had signed with an average of the deals being $7 to $8 million annually. 

The New York Yankees and Toronto Blue Jays were meanwhile getting $20 million or more, according to The Athletic. This, along with digital signage in the dugout, helped push the team sponsorship to new heights. They saw a 23% increase in sponsorship from 2022 to 2023. Fast forward to 2024, the revenue has hit $1.9 billion, a whopping 20% jump from last season. And there are more than 325 new sponsorships across 30 different categories that have boosted the financial race.

From companies in construction to automotive to insurance sectors, all are leading the charge. However, there are stars like Shohei Ohtani who are bringing in a global audience. MLB’s reach now only seems to be increasing. Jennifer Halloran from MassMutual said it best, “It goes beyond the patch.” MLB’s strategy seems to be working. 

Shohei Ohtani shaping the future of sponsorships

Shohei Ohtani and his impact in Major League Baseball have been remarkable. He is literally helping reshape the landscape as everyone speaks. When he joined the LA Dodgers for a crazy $700 million, everyone thought it would ve way too much. And it’s as if he set that standard, because Juan Soto this time got such a huge deal. Plus, along with the Dodgers, even MLB had much to gain with Shohei Ohtani. For example, the number of Japanese brands in MLB ballparks increased by 218% over the last two seasons. Ohtani being the key change to drive in such global interest.

The jersey patches, the helmet logos, and new deals all fueled MLB’s revenue. Now more than 25 Japanese brands are looking for exposure through the game. Players like Cygames and Infroneer are in too, making it evident just how much of an appeal Japanese players are bringing to MLB. 

A Sponsor United report stated, “MLB is experiencing a convergence of forces driving unprecedented growth. Recent rule changes have enhanced the fan experience, while the league’s global reach continues to expand, fueled by the star power of players like Shohei Ohtani, attracting significant international dollars.” 

However, while MLB is attracting the claps because of moving ahead so quickly, they also face backlash. Like most recently, there was an investigation on whether LA Dodgers and Roki Sasaki had a handshake deal. They found no wrongdoing. But fans are confident because MLB has much to gain from Sasaki and his presence in Japan; they didn’t act seriously. Well, everything has two sides. 

For now, the landscape of sponsorships, the deals, and the entire culture, it seems, are slowly changing.