Division I Programs Now Can Sell Uniform Advertising. What Does That Mean for Rutgers

A university professor with branding and sports media expertise examines the opportunities, challenges and long-term implications

In January, the National Collegiate Athletic Association (NCAA) approved a landmark policy allowing Division I athletic programs to sell corporate advertising space on team uniforms, equipment and apparel, opening a significant new revenue stream for colleges and universities throughout the nation.

The financial impact is already substantial: Reports indicate JPMorgan Chase & Co. will pay about $17 million for branding rights of Ohio State University's athletic programs, while SoFi Technologies Inc. has entered into an agreement worth as much as $20 million with the University of Notre Dame.

For nearly six years, Mark Beal, an associate professor of professional practice and communication in the Rutgers School of Communication and Information and the university's global sports business master's program, has discussed the possibility of corporate logos on NCAA uniforms with his students.

Beal weighs in on the factors leading to the NCAA's decision, the marketing and communications implications for universities and corporate partners and the potential benefits and challenges this new era brings to collegiate athletics.

What factors led the NCAA to approve corporate advertising on Division I team uniforms, equipment, and apparel?

On July 1, 2021, student-athletes were permitted by the NCAA to monetize their name, image, and likeness. For the first time, NCAA student-athletes could legally earn money from endorsements and sponsorships.

Exactly four years later, the House v. NCAA settlement took effect. NCAA Division I athletic departments were permitted to share revenue with student-athletes via an annual revenue cap of approximately $20.5 million for the 2025-2026 academic year, which increases each year.

The landmark settlement initiated a need for athletic departments to identify and secure more than $20 million annually in new sponsorship revenue sources. Corporate advertising in the form of a patch on team uniforms addresses all or a portion of that necessary new sponsorship revenue. It also appeals to student-athletes as they actively prospect for name, image and likeness endorsements.

While new in college athletics, featuring sponsors on the uniforms of professional sports teams and athletes has been a long tradition in motorsports like NASCAR as well as golf and tennis. More recently, starting with Major League Soccer in 2007, the WNBA in 2009, National Basketball Association in 2017, National Hockey League in 2020 and Major League Baseball in 2023, sponsor advertising on uniforms is prominent in professional sports in the United States other than the National Football League.

Do corporate sponsorship payments typically go to universities or athletic departments? What are the implications of where those funds are allocated and managed?

Departments across universities ranging from athletics to foundations have collaborated with corporations and brands for many years as it relates to paid sponsorships and corporate donations.

Now that college athletic teams will feature corporate sponsorship on uniforms, it is noteworthy because those teams are featured each time that they take the field or court on network television, cable television and streaming platforms.

They are also well covered by editorial media outlets. Sponsor advertising on uniforms will be amplified via paid and earned media coverage as well as social media content distributed by the university, student-athletes and fans.

How does this decision benefit corporate sponsors? Beyond logo placement on a uniform, what metrics can companies use to measure return on investment?

Advertising on the uniforms of college sports teams represents a new frontier for corporate sponsors. It's one of the few remaining billboard spaces where, before this year, advertisers couldn't place their brand logos.

Companies will measure their sponsorship return on investment via traditional metrics such as television airtime, earned media coverage, and social media presence, but I believe the real return on investment will come from the greater impact corporate sponsors could potentially have at the universities where they are making a significant investment: academic scholarships, grants, career preparation and networking as well as programs for first-generation and next-generation college students.

How do universities stand to benefit from these sponsorship opportunities?

Uniform advertising could be the entry point for a new partnership with a corporation that could extend well beyond athletics.

Once a corporation commits to a uniform sponsorship, they are part of that university's community. The university and the corporate sponsor should then closely collaborate on how to extend the sponsor's presence across the campus in meaningful and purposeful ways that engage students and scholars.

What advantages could this new revenue stream provide for athletic teams and student-athletes?

The new uniform advertising revenue stream helps fund the annual revenue cap of more than $20 million.

Once the initial uniform sponsorship is signed and confirmed, there are endless possibilities of how the sponsor could deliver value to a university well beyond the athletic department.

What are some of the potential drawbacks or risks associated with corporate advertising on college athletic uniforms?

The more corporations invest in sponsorships via team uniforms, the more influence they could have at a university. The sponsor should never become bigger than the university in how they activate the sponsorship or the influence they extend across campus.

As a Division I institution and member of the Big Ten Conference, is Rutgers likely to explore uniform advertising partnerships? What factors will influence that decision?

Division I institutions, including Rutgers, that are members of conferences such as the Big Ten Conference, will all proactively explore uniform advertising partnerships.

For the university, it offers a new and innovative opportunity to engage current university sponsors as well as corporations and brands that may not have an existing relationship with the university.

In some cases, a university may partner with a regional brand. In other cases, as we see with Ohio State University, they partnered with JPMorgan Chase, which goes well beyond Columbus, Ohio.

Ultimately, the partnership needs to be mutually beneficial in a way that delivers measurable and meaningful value to the university and the sponsor.