As a Chelsea supporter, each week sees me putting on the blue jersey and offering free advertising for South Korean electronics giant Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930). Now, in a huge endorsement deal, Samsung will be omnipresent in the National Basketball Association following a three-year, $100 million agreement reached between the two parties. Both parties are interested in extending their global reach and the deal may just make this possible.
Samsung is now the official provider of tablets and televisions
Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) is now the official provider of tablets and televisions as well as the courtside monitors that the referees will use to replay close calls. All these devices will now bear the Samsung label. Samsung has been the biggest seller of smartphones and flat screen televisions for some time – now it will be a very visible partner of one of the most watched American sports outside of its borders.
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In addition to product placements, it’s believed that the deal will also see Samsung customizing video content with an unique NBA offerings.
This is not the first foray into television and computers for the NBA. The league has previously signed agreements with both the Chinese company Haier and U.S computer maker Hewlett-Packard Company (NYSE:HPQ).
Samsung is not new to the NBA
Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) is not new to the NBA. Last year saw LeBron James receive 40 million views for his long form commercial on YouTube. The commercial showed James using his Galaxy Note II smartphone as he got his hair cut prior to heading to a basketball game. Additionally, Beyonce’s husband, rapper and former Brooklyn Nets owner Jay-Z announced his newest album during a three-minute Samsung spot during the NBA Finals in June. Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) purchased one million copies of “Magna Carta Holy Grail” and gifted it to users of of the Galaxy S III, it’s flagship Galaxy S4 and the Note II.
While fantasy basketball has nowhere near the following that fantasy football does, the NBA signed a deal last month with Stats LLC that provides player-tracking in each of the 30-plus league arenas.
Each of these deals was put together by present league commissioner David Stern who will step down from his position in February after a run of nearly thirty years. Stern will be be succeeded by Adam Silver, currently the NBA’s deputy commissioner.