MLB Jersey Patch Market Warming Up As Season Approaches

Major League Baseball teams are figuring out the value of the real estate on their uniform sleeves.

The Cincinnati Reds inked a deal with Kroger worth $5 million annually, according to Sports Business Journal, to put the grocery store chain's logo on the team's uniforms. The Arizona Diamondbacks struck a patch deal with tech company Avnet.

The market for jersey patches has developed slowly as teams seek to establish an appropriate value for the new offering, but it may pick up as the MLB season approaches. The Los Angeles Angels are set to announce a deal on Saturday.

Sports sponsorship revenue reached $8.6 billion in the 12 months ending with August 2022, according to a study by SportsPro and KORE Software. That represented a 12% drop from $9.8 billion over the previous 12 months.

Soccer accounted for nearly half of that sum, with $4.2 billion in sponsorship value, followed by motorsport with $1 billion and basketball with $655 million.