Recently, Crypto.com and other exchanges have been heavily involved in sports sponsorships. Over the course of its twenty-year run in Los Angeles, Staples Center has witnessed many memorable events. In a tweet on Tuesday night, NBA insider Shams Charania reported that cryptocurrency exchange Crypto.com had negotiated a new naming rights contract, renaming the building Crypto.com Arena.
The venue is most known as the home of the Los Angeles Lakers, but it also hosts professional teams such as the LA Kings and the LA Sparks. The facility is located in the bustling downtown district that is home to LA Live.
According to Charania’s tweet, it is expected to be the largest arena naming rights transaction in the United States to date. The LA Times later corroborated Charania’s post, which Crypto.com and AEG also confirmed. A news statement was also issued.
Staples Center – the iconic home of the Los Angeles Lakers and Clippers among others since 1999 – will have a new name beginning Dec. 25: https://t.co/lur8Hbuv0r Arena. It’s believed to be the largest U.S. venue naming rights deal to date.
— Shams Charania (@ShamsCharania) November 17, 2021
Charania’s statement is not light, considering FTX paid $135 million for the naming rights to Miami’s former American Airlines Arena earlier this year. In addition, just down the road in Los Angeles, the naming rights deal for SoFi Stadium was agreed to for $500 million over a 20-year period. The impending Intuit Dome, which will be the future home of the Los Angeles Clippers, will cost $600 million over a 23-year period.
The arrangement with Crypto.com is a record-breaking $700 million over a 20-year period. Talk about a crypto gamble. According to Axios’ Dan Primack, building owner AEG repurchased the naming rights from Staples, and Crypto.com held discussions with AEG earlier this year.
Dan Beckerman, President and CEO of AEG, stated that the two companies “not only have a vision about innovation and the future of sports and entertainment, but we also have a shared commitment to the communities where we work and live.”
According to the announcement by the Lakers’ Christmas Day game next month, the building’s indoor signage will be replaced with Crypto.com assets. Outside signage is scheduled to be up by June of next year. The news release also included a photo of what the historic venue’s outside signage will look like:
The level of exposure on arena teams is not yet totally apparent. Crypto.com’s aggressive sports sponsorship campaign continues, with the addition of the venue to a list that includes the Philadelphia 76ers, UFC, F1, Paris Saint-Germain, and others. Rival crypto exchanges, most notably Coinbase and FTX, have also been rapidly acquiring partnerships and ambassadors in sports.
Expect a lot more in this area as exchanges compete for market share.
