Crypto.com Buys Naming Rights to Lakers' Staples Center
CRO coin has rallied after Staples Center was renamed Crypto.com. The CEX closed a $700 million deal for the naming rights to the Arena. Staples Center is the home of Los Angeles Lakers and WNBA's Sparks.
The deal, disclosed on Tuesday night, links Crypto.com with Anschutz Entertainment Group, which owns the Staples Center and the adjacent complex, L.A. Live. The downtown arena is the home court to Clippers, the Lakers, and National Hockey League's Kings franchise.
Following the announcement, Crypto.com's coin, the CRO, rallied more than 24% in 24 hours and has cracked the top 20 cryptos by market value to rank at No. 18.
Crypto.com has experienced rapid growth in a short period. The network was established in 2016 and crossed 1 million users in September 2019. Crypto.com now boasts over 10 million users.
Terms of the agreement were not announced, though it is alleged to be a 20-year contract worth $700 million.
The deal is therefore one of the most valuable naming rights agreements in sports. In September, the Steve Ballmer-owned Clippers signed a $500 million deal with financial management tech firm Intuit. In 2016, Chase Bank struck a 20-year naming rights deal with the Golden State Warriors, worth $300 million.
The Crypto.com rename deal will take effect on Christmas Day, during a Lakers versus Brooklyn Nets game in the NBA's annual Christmas Day games. That game will be televised on Disney-owned ESPN and ABC.
AEG CEO Dan Beckerman said in a statement, "This partnership is about the future." He added, "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. We look forward to partnering with Crypto.com to create meaningful initiatives to bring that vision to life in the years to come."
Staples presumably paid approximately $116 million over 20 years, since 1999, for the naming rights to the sports center. The parties extended the contract in 2009 during the Great Recession.
The deal connects Crypto.com with one of the National Basketball Association's leading brands, providing crucial brand awareness as the crypto network positions itself to dominate market share in the developing digital currency space.
The Lakers boast 17 NBA titles, tied for most in National Basketball Association history, and have one of the league's top stars in LeBron James on their listing. According to Forbes, the franchise is worth $5.5 billion, the third-highest in the NBA after the Warriors and New York Knicks.
Crypto.com has over 10 million users on its platform and enables users to buy and sell cryptos. The company earns revenue from transaction fees.
The company also has a sponsorship deal with the NHL's Montreal Canadiens and a racing partnership with Formula 1 worth $100 million.
More sports leagues are adopting crypto sponsorships, as the virtual currency market gains popularity among leagues and clubs and retail investors seeking to recover from Covid pandemic losses.
Nevertheless, this partnership with AEG may lead to more market share for Crypto.com in the crypto space, as it will now be linked with the Lakers, one of the NBA's leading brands.
And in addition to being one of the most valued naming agreements in sports, the deal also promotes Crypto.com mainstream brand awareness.
First published on Nov 18, 2021