The Los Angeles Lakers struck a drink sponsorship deal with Canadian-based BioSteel, ending a long-term relationship with Gatorade, per CNBC.
Terms of the deal were not disclosed. Industry experts estimate beverage deals with top NBA franchises can reach up to $5 million per season.
The partnership will help the Lakers recover from losses suffered during the pandemic, with revenue dipping to roughly $400 million in 2021 from $434 million last year.
Gatorade will still make its presence felt in the NBA as the naming rights holder of its developmental league — now dubbed the G League.
BioSteel, which also makes protein powders and other products, is gaining momentum within a global sports drink market expected to reach $32.61 billion by 2026.
- Cannabis firm Canopy Growth purchased a majority stake in the company for roughly $40 million in 2019.
- Last August, Patrick Mahomes signed a multiyear partnership with the company.
- In March, NBA Star Luka Dončić made the brand his first equity investment.
Sponsorships continue to bring in significant revenue for the NBA.
The league generated a record $1.46 billion in sponsorship revenue during the 2020-21 season, a 6% increase year-over-year.