Shohei Ohtani Fuels Record Sponsorship Growth for MLB and North American Pro Sports
The arrival of two-way sensation Shohei Ohtani to the Los Angeles Dodgers has not only brought on-field success but also ushered in a new era of sponsorship revenue for Major League Baseball. Ohtani’s global appeal, particularly in his native Japan, has unlocked lucrative partnerships and sparked a broader surge in sports sponsorship across North America. His presence alone has generated an estimated $70 million in incremental sponsorship revenue for the Dodgers in 2024, attracting 12 new Japanese-based partners. This "Ohtani effect" extends beyond Los Angeles, with teams across the league benefiting from Japanese brands eager to associate themselves with the superstar during his away games, generating an estimated $15 million in cumulative revenue from signage deals.
Ohtani’s impact, combined with innovative sponsorship assets like jersey patches and helmet logos, catapulted MLB’s total sponsorship revenue to a record $1.84 billion in 2024, a remarkable 16% year-over-year increase and a 36% surge over the past three seasons. This growth outpaces all other major North American professional sports leagues, with only the NFL surpassing MLB’s total at an estimated $2.3 billion. While the NFL, NBA, NHL, and MLS also experienced double-digit sponsorship growth over the past three years, MLB’s dramatic rise underscores the league’s successful efforts to capitalize on new opportunities and the unique appeal of its star players.
Across the five major North American sports leagues – NFL, NBA, MLB, NHL, and MLS – sponsorship revenue reached an unprecedented $7.66 billion in 2024, a 12% year-over-year increase generated through nearly 14,000 deals. Almost 200 brands invested over $1 million each in new sponsorship agreements, highlighting the growing demand for association with professional sports. New deals accounted for approximately 15% of total sponsorship revenue across the five pro leagues and the Power 5 college conferences. The NFL boasts the highest average deal value at $760,000, with all five pro leagues exceeding an impressive $300,000 average.
This surge in sponsorship activity is driven by a convergence of factors, including the enduring popularity of professional sports and the increasing creativity of teams and leagues in crafting attractive partnership opportunities. Traditional luxury suites are giving way to a wider array of premium seating experiences, each offering potential naming rights for sponsors. Brand exclusivity is becoming less rigid, with teams now averaging ten alcohol sponsorships. Digital advertising has revolutionized inventory delivery, enabling unprecedented levels of customization and targeted messaging.
The strategic importance of expanding the sponsorship segment is particularly acute for MLB and the NHL, as they lack the lucrative national media deals enjoyed by the NFL and NBA. Furthermore, both leagues face uncertainty surrounding regional sports network revenue streams due to the financial struggles of Diamond Sports Group (now Main Street Sports Group). For MLB and the NHL, sponsorship represents a larger proportion of total revenue compared to the NFL and NBA, underscoring its critical role in their financial stability.
While the explosive growth spurred by the introduction of jersey patches and other new assets may not be sustainable in the long term, the outlook for sports sponsorship remains positive. Challenger brands, like Prime Hydration, are pushing established players to be more innovative and aggressive in their marketing strategies. International markets present significant growth potential, as demonstrated by events like the NFL’s International Series. Furthermore, changes in team ownership, including the influx of institutional investors, are prompting a reassessment of revenue generation strategies, with sponsorship playing a key role due to its relative independence from on-field performance. This focus on maximizing revenue streams positions sponsorship as a vital driver of financial success for sports organizations, regardless of wins and losses.
