Capital One signs a $125 million sponsorship deal with MLB.

• Major League Baseball has named Capital One as its "official bank and credit card partner," as announced on Monday.
• The terms of the deal between MLB and an unspecified entity were not disclosed publicly, but sources informed CNBC that it was worth approximately $125 million over a five-year period.
• In 2021, MLB's sponsorship revenue increased to approximately $1.7 billion from around $1 billion during the Covid-shortened 2020 season, according to sources.

Major League Baseball has a new banking partner: .

According to an announcement Monday, the company has been named the "official bank and credit card partner" of MLB. The deal is worth $125 million over five years, as reported by people familiar with the matter to CNBC, although the exact terms were not made public.

The World Series will feature the MLB and its 30 teams in advertising campaigns, with Capital One serving as a presenting sponsor.

The MLB Players Association and MLB reached an agreement with Capital One after settling a nearly 100-day labor dispute, which delayed spring training and the regular season, which will start on April 7.

MLB is planning to introduce additional assets to its sport with labor peace secured. Sponsorships on helmets may appear during this season, and jersey ad patches are set to debut in 2023. Uniform sponsorships are estimated to be worth $11 million per MLB team, according to Nielsen. Garden, MLB's Chief Revenue Officer, stated that Nielsen's estimation is likely accurate but could be higher in some cases as the sponsorships include more rights than just the patch within the packaging.

The Capital One deal, which is not unexpected, will increase MLB's sponsorship revenue. In 2021, MLB's sponsorship revenue increased to approximately $1.7 billion from about $1 billion during the Covid-shortened 2020 season, according to sources. The league earned more than $900 million in 2019, according to sponsorship valuation firm IEG. MLB has over 1,600 sponsorships on both the national and local levels, the firm stated.

Capital One's sports promotions and Samuel L. Jackson commercials are consistently praised by Garden for being entertaining and well-received by fans.

Commercials with an MLB logo are no longer sufficient. We require partners who engage our fan base and offer distinctive and thrilling programs that have a significant impact.

Inside MLB’s Capital One agreement

Capital One has assumed the bank promotion rights for MLB, replacing the previous partner, since 2015, as per IEG. The firm estimates that the agreement paid MLB more than $10 million in the 2021 season.

The Capital One pact for the World Series is vastly different from the BofA agreement. For example, Capital One will receive premium signage around the World Series, including its brand logo on the field, third and first base bags, virtual signage behind home plate, and on the pitcher's mound. The last time MLB had a presenting sponsor for the World Series was in 2019 when YouTube TV owned the rights.

Our relationship will be centered on the World Series, which is our premier event, according to Garden.

The agreement is aimed at increasing MLB's viewership following the pandemic's impact on the sport.

The 2021 World Series between the Atlanta Braves and Houston Astros drew an average of 11.75 million viewers, marking a significant increase from the 2020 World Series, which saw the Los Angeles Dodgers win their first championship since 1988. That series averaged 9.7 million viewers.

Both six-game series were down from pre-pandemic levels.

The 2019 World Series between the Astros and Nationals drew an average of 13 million viewers over seven games, with the final game attracting 23 million viewers. The 2018 World Series between the Red Sox and Dodgers averaged 14 million viewers over five games. The Astros' 2017 World Series victory over the Dodgers drew an average of 18.9 million viewers over seven games.

Capital One will leverage its partnership with MLB to provide cardholders with perks during top events such as the All-Star Game, Home Run Derby, and the 2022 Field of Dreams game. Additionally, the company will sponsor events at the Little League, college, and MLB minor league levels and support the Jackie Robinson Foundation.

The MLB partnership is taking place just before the 75th anniversary of Robinson breaking the color barrier in the league. MLB will commemorate the historic occasion on April 15, and Capital One has pledged to contribute a minimum of $250,000 to the foundation for the 2022 season.