New jersey sponsorship for the Cleveland Cavaliers has been announced. A deal was reached between the NBA and the local steel producer. Cleveland-CliffsThe parties made their announcements Tuesday.

Although the terms of the deal are not public, people who were familiar with it said that they match the Cavs’ prior sponsorship agreement with Goodyear tires. This pact was reported to have a value of $10 million per season.

Due to the confidentiality of the contract terms, these people were not allowed to be identified.

It’s a very good moment for Cleveland-Cliffs. This season’s surprise team in the NBA is the Cavs, who appear well on their way to the postseason. This team currently ranks seventh in NBA’s Eastern Conference. LeBron James was their coach when they reached the fourth consecutive NBA Finals, losing to the Golden State Warriors.

Cleveland-Cliffs would be exposed more nationally if the Cavaliers reach the playoffs. This is because postseason berths equals more TV impressions for jersey partner partners.

Cleveland-Cliffs can be traded on New York Stock Exchange with the ticker “CLF”. The company has an estimated market capitalization of more than $16 billion.

Cavs CEO Len Komoroski referred to the new partnership in a statement. He called it “the fabric” of Northeast Ohio’s life. Komoroski stated that it was “very appropriate” and important for Cliffs, to be represented literally on the Cavs’ jerseys.

Cleveland-Cliffs, which is continuing its sponsorship relationship with Rocket Mortgage FieldHouse and includes an arena entry naming rights slot, will receive in-arena signs at Rocket Mortgage FieldHouse. Cleveland-Cliffs won’t be able to acquire the Cavs practice jersey patch asset, or virtual floor signage that will allow local broadcasters to see their games. To increase their value, teams can bundle those assets into jersey patch deals.

In the world of sports sponsorship, NBA jersey patches are gaining popularity. In 2017, the NBA began its jersey patch program. The league has been able to make approximately $150 million annually through team deals since then. This figure will rise to over $200 million in the 2021-22 season.

The Brooklyn Nets currently have the highest-priced patch deal. CNBC reports that the Nets receive $30 million per annum from WeBull, their online trading platform. This agreement was more than the $20 million per year deal that the Golden State Warriors had with Rakuten, a Japanese e-commerce platform. This agreement expired after the 2022-23 seasons and was extended last season.

The league should see newer patch agreements with the NBA teams. Its sponsorship revenue reached $1.46Billion in the 2020-21 regular season according to IEG’s estimates. IEG is a consulting firm that helps sports partners.