The change will take effect starting with the 2017-18 season when Nike replaces Adidas as the official apparel provider for the NBA. The change will be in effect for a three-year pilot program.
The patch will only be 2.5-by-2.5 inches on the left shoulder, but the average team hopes to make $4-6 million per year from the new partnerships, according to ESPN. This would total around $120-180 million per year in new revenue, to be split with the players.
The Nike swoosh will be on every jersey on the right shoulder during the three-year trial run.
"It's manifest destiny," said Commisisoner Adam Silver to ESPN last month. "So let's begin by saying this isn't going to affect the competition. What we're talking about is a patch on the jersey. And one of the reasons we want to do it is that it creates an additional investment in those companies in the league."
WATCH: Nike Debuts Kobe Bryant Commercial with a Message to All of His Haters!
"The amplification we get from those sponsors, those marketing partners of the league, who want to attach to our teams and our players. But once they put their name on the jerseys, they'll then use their media to promote the NBA extensively. That's probably the greatest reason for us to do it."
Jerseys sold at retail will not include corporate logos, but teams will have the choice to sell a version with the logo if they want.