New dimension of sponsorship: Cryptocompanies like Coinbase in donor mood: NBA pays only one division more – 06/03/22 – News

Photo: John Hefti – AP / dpa

Agreements with crypto companies have helped the NBA to a new record in sponsorship money in the 2021-22 season. Only one sector is even more generous.

Sponsorship revenues have risen to a record $ 1.6 billion, according to estimates from IEG, a sports partnership consulting firm, thanks in part to partnerships with cryptocurrency companies in the 2021-22 season. That’s a good $ 200 million more than last season. Revenue comes from naming rights agreements for arenas or putting logos on players’ jerseys. The agreement with the crypto-trading platform Coinbase alone will bring in $ 192 million over four years to the association, it says. CNBC.

At the team level, the Los Angeles Lakers have entered into a $ 700 million deal with the Crypto.com platform. The name Crypto.com Arena is now adorned on the walls of Spielheimstatte for the next 20 years. Golden State Warriors relinquished their global rights to crypto exchange FTX for $ 10 million. The same company also secured the arena naming rights to the Miami Heat. Another franchise that got a lucrative deal is the Brooklyn Nets. The team management secured $ 30 million per season from the brokerage platform Webull in September 2021.

According to IEG, these crypto partnerships represent a whole new dimension in sponsorship. “The sponsorship business of the crypto sector is something we have never seen before,” said Peter Laatz, IEG’s Global CEO. Crypto Partnerships is now the second most lucrative sponsorship category for the NBA. More money is flowing only from the technology sector to the National Basketball Association’s pots, led by Commissioner Adam Silver.

Among the four major sports leagues, the NBA was number three in sponsorship revenue. The American professional American football league, the NFL, received the most with nearly two billion US dollars in the 2021/22 season, according to the IEG. MLB baseball teams followed in second place and cashed in $ 1.7 billion in sponsorship money.

Author: Nicolas Ebert, Wall Street: online central editorial office

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