Chime acquires jersey sponsorship with Dallas Mavericks for $33 million

In recent filings with the U.S. Securities and Exchange Commission by a San Francisco-based company, new information regarding the Dallas Mavericks has come to light. Surprisingly, it was revealed that fintech company Chime has paid the Mavericks $33 million over a three-year period for sponsorship rights, including their jersey patch and other promotional opportunities. This deal was disclosed in a prospectus submitted to the SEC as Chime prepares to make its public debut.

The arrangement between Chime and the Mavericks is classified as a related party transaction due to the involvement of Cynt Marshall, the former CEO of the Mavericks who is also a member of Chime’s board of directors. According to Chime’s SEC filing, payments made to the Dallas Mavericks amounted to $10.5 million, $11.5 million, and $11.2 million during the fiscal years 2022, 2023, and 2024, respectively.

Chime has been the jersey sponsor for the Mavericks since 2020, following the NBA’s decision to allow teams to sell jersey sponsorships starting in the 2017-18 season. Before Chime, the spot on Mavericks jerseys opposite the Nike logo was occupied by the buying and selling app 5miles. Although the terms of the initial Chime-Mavericks deal were not disclosed in 2020, reports indicated that it was a multi-year agreement with a potential value exceeding $47 million.

The decision to partner with Dallas was influenced by Luka Doncic, who elevated the Mavericks to an international brand. Chime’s co-founder Chris Britt mentioned that this was not purely a local move but a recognition of the Mavericks’ status as a nationally recognized and, with Doncic’s popularity, an internationally revered team. Despite the extension of the sponsorship deal in October, the Mavericks made headlines by trading Doncic to the Los Angeles Lakers just four months later.

During the 2023-24 season, Doncic’s Mavericks jersey was among the top-selling NBA jerseys, ranking sixth on the annual list of the best-selling jerseys. However, after his move to the Lakers, Doncic’s jersey took the top spot this year, while no Mavericks players made the list.

The recent stroke of luck for Dallas came with winning the No. 1 pick in the NBA draft lottery, ensuring that top prospect Cooper Flagg from Duke University will join the team, sporting the team’s blue and silver colors along with Chime’s logo in the upcoming NBA draft. This unexpected turn of events promises to give the Mavericks a boost in jersey sales and attention in the upcoming season.