Cleveland-Cliffs, a steel company, has struck a jersey patch deal with the NBA's Cavaliers.

• Cleveland-Cliffs, a hometown steel manufacturer, secured a jersey patch sponsorship deal with the Cleveland Cavaliers.
• The company Cleveland-Cliffs is listed on the New York Stock Exchange with the ticker symbol "CLF" and has a market capitalization of more than $16 billion.
• This season, the NBA has been surprised by the performance of the Cavs, who have a high probability of qualifying for the playoffs.

The Cleveland Cavaliers have a new jersey patch sponsorship with a hometown steel manufacturer, as announced Tuesday.

The terms of the deal were not publicly disclosed, but sources suggest it mirrors the Cavs' previous agreement with Goodyear, which was worth $10 million annually.

The people declined to be named because the deal terms are private.

The agreement coincides with Cleveland-Cliffs' recent success in the NBA, as the Cavs are currently one of the surprise teams in the league and are on track to make the postseason. The team is currently seventh in the Eastern Conference, and this marks the first time since LeBron James led them to the NBA Finals in 2018 that they have made the playoffs.

If the Cavaliers make the playoffs, Cleveland-Cliffs will receive more national exposure due to the increased television impressions from jersey patch partners.

The company Cleveland-Cliffs is listed on the New York Stock Exchange with the ticker symbol "CLF" and has a market capitalization of more than $16 billion.

In a statement about the partnership, Cavs CEO Len Komoroski stated that the company is "the fabric of life here in Northeast Ohio." He added that the agreement is "very appropriate and relevant for Cliffs to be represented, literally, on the fabric of the Cavs player jerseys."

Cleveland-Cliffs will have in-arena signage at Rocket Mortgage FieldHouse under the new agreement, building on its current sponsorship deal with the team, which includes an arena entrance naming rights slot. However, Cleveland-Cliffs will not obtain the Cavs’ practice jersey patch asset or virtual floor signage for local broadcast games. Teams can bundle those assets in jersey patch deals to boost their value.

The popularity of NBA jersey patches in the sports sponsorship market has increased since the league introduced its jersey patch program in 2017. It is predicted that the revenue generated from team deals will surpass $200 million during the 2021-22 season.

Currently, the Brooklyn Nets have the most lucrative patch deal, with an annual revenue of $30 million from the online trading platform WeBull. This surpasses the Golden State Warriors' $20 million per season deal with Rakuten, which was extended last year and will expire after the 2022-23 season.

The increase in sponsorship revenue for the NBA's newer team patch agreements is expected to reach a record $1.46 billion for the 2020-21 regular season, according to estimates by IEG, a sports partnerships consultancy firm.