The NBA has been greatly benefiting from cryptocurrency’s influence as of late.
According to CNBC, a recent report ahead of the NBA Finals shows that crypto partnerships are the reason the league’s sponsorship revenue for the 2021-22 season is the highest it’s ever been.
Based on estimates by IEG, the NBA’s crypto deals brought its sponsorship money to a record $1.6 billion — a 13 percent increase from the previous season.
“The cryptocurrency category’s sponsorship sending spree is like nothing we have ever seen before,” said Peter Laatz, IEG’s global managing director, per CNBC.
The NBA’s crypto deals for this current season include its league agreement with Coinbase, which is reportedly worth $192 million over four years.
In November 2021, the historic STAPLES Center being renamed Crypto.com Arena was a big move that was met with both praise and disappointment. As previously reported by AfroTech, the $700 million deal was a partnership with AEG.
“This partnership is about the future,” AEG President Dan Beckerman said in a statement, according to the Washington Post. “AEG and Crypto.com not only share a vision about innovation and the future of sports and entertainment, but we also have a shared commitment to our communities where we work and live.”
The NBA’s Lakers were a part of the ordeal due to a deal signed with the management company in May 2021. The Crypto.com Arena will be the team’s home for 20 years.
The Golden State Warriors x FTX
Another crypto deal inked by an NBA team came after the Golden State Warriors reached an agreement to an international rights sponsorship with cryptocurrency exchange firm FTX. In the deal — worth $10 million — the Warriors agreed to “provide FTX brand presence throughout Chase Center, the Warriors G League and NBA 2K team, and digital floor ads during RSN games,” CNBC shared in December 2021.
“FTX is a company that caught our eyes a couple of months ago,” Warriors president and chief operating officer Brandon Schneider told the outlet. “We think we’re at the beginning of the beginning. We’re all learning, and this space will evolve quite a bit.”