The Rise of Crypto Sponsorship in the NBA
In recent years, the world of sports has seen a significant increase in crypto sponsorships and the use of non-fungible tokens (NFTs). The NBA, being one of the most popular sports leagues globally, has not been immune to this trend. In fact, crypto partnerships were the second most lucrative sponsorship category for the NBA in 2022. These sponsorships include deals for arena-naming rights and placing crypto company logos on team jerseys.
Top Cryptocurrency Deals in the NBA
One of the most notable cryptocurrency deals in the NBA was between Coinbase and the league. In 2021, Coinbase became the first crypto company to sign a deal with the NBA, valued at $192 million over four years. This agreement made Coinbase the exclusive cryptocurrency platform for the NBA, as well as other affiliated leagues like the WNBA and NBA G-League. As part of the deal, Coinbase also became the presenting partner for the WNBA Commissioner’s Cup and the USA Basketball exhibition tours.
Crypto.com, another major player in the cryptocurrency industry, struck a groundbreaking deal with the Los Angeles Lakers in 2021. The Lakers sold the naming rights to their home arena to Crypto.com for a staggering $700 million over 20 years. This deal is not only the biggest naming rights deal in sports history but also highlights the growing influence of crypto companies in the sports industry.
Webull, a New York-based independent brokerage firm, formed a partnership with the Brooklyn Nets in 2021. This deal allows Webull to have their name on the Nets’ jerseys and is worth $30 million per year for BSE Global, the owner of the team. This jersey deal surpasses the previous record set by the Golden State Warriors’ partnership with Rakuten, which was worth $20 million.
The Impact of NFTs on the NBA: A Look at NBA Top Shot
NFTs, or non-fungible tokens, have also made a significant impact on the NBA. NBA Top Shot, created by Dapper Labs, was the league’s first venture into the world of NFTs. NBA Top Shot allows fans to buy, sell, and trade basketball video clips called Moments. These Moments hold value and can be sold by owners for a profit depending on their rarity. NBA Top Shot quickly became one of the breakout apps of the NFT craze, attracting millions of users.
The Los Angeles Lakers’ Record-Breaking Naming Rights Deal with Crypto.com
The Los Angeles Lakers made headlines in 2021 when they sold the naming rights to their home arena to Crypto.com. This groundbreaking deal is valued at $700 million over 20 years, making it the biggest naming rights deal in sports history. The Lakers are set to generate an estimated $35 million per year from this partnership. The value of the agreement may even be higher, according to Russell Silvers, the Chief Operating Officer of AEG Global Partnerships.
This deal demonstrates the growing interest of crypto companies in partnering with sports teams and leagues, as well as the increasing popularity of cryptocurrencies in mainstream society.
Sorare: The NBA’s Official NFT Fantasy Partner
In its latest venture into the world of NFTs, the NBA partnered with Sorare to create a new fantasy game leveraging collectibles backed by non-fungible technology. Sorare is a free-to-play fantasy game that allows users to create lineups of NFT-based digital collectibles representing their favorite NBA players and teams. These collectibles earn points based on the real-life performance of the players.
The partnership between the NBA and Sorare gives fans an entirely new way to engage with their favorite teams and players. At the end of 2022, Sorare had over 3 million players and also has licensed deals with other major sports leagues, including MLB, MLS, and various European football leagues.
Overall, the NBA’s embrace of crypto sponsorships and NFTs reflects the growing intersection between sports and digital assets. As more fans and brands enter this space, we can expect to see further innovation and collaboration between the sports industry and the crypto world.
Analyst comment
Positive News:
– The rise of crypto sponsorships in the NBA shows the growing interest of crypto companies in partnering with sports teams and leagues.
– Crypto partnerships were the second most lucrative sponsorship category for the NBA in 2022, indicating a positive financial impact.
– The groundbreaking naming rights deal between the Los Angeles Lakers and Crypto.com highlights the increasing popularity and influence of crypto companies in the sports industry.
– The partnership between the NBA and Sorare provides fans with an exciting new way to engage with their favorite teams and players.
Short Analysis:
The NBA’s embrace of crypto sponsorships and NFTs has proven to be financially lucrative and has attracted millions of users. As more fans and brands enter this space, the market can expect to see further innovation and collaboration between the sports industry and the crypto world.
