Crypto firms pay massive price tags to name arenas as sports teams weigh risks

bitcoin, coinbase, cryptocurrency, los angeles lakers, nba, nfl, nhl, staples

Crypto.com is paying out a reported $700 million to rename Los Angeles’ Staples Center.

Cryptocurrency companies are being forced to shell out massive premiums in sports sponsorship deals as professional teams weigh the risks of getting burned — like some of them did during the dot-com bubble.

Crypto.com, a Singapore-based crypto trading site, reportedly paid $700 million for the naming rights to the Staples Center in Los Angeles for 20 years — more than five times what Staples had paid for the same rights in 1999.

And in March, Bahamas-based crypto exchange FTX ponied up $135 million to rename the home of the Miami Heat. That’s more than triple what American Airlines paid for naming rights in 1999.

Arena owners are able to demand more money from venture capital-flushed crypto firms because they’re relatively unknown names in an unproven industry, experts say.

“If you want to do a deal with Mercedes Benz, that’s safe,” Columbia University sports management professor Joe Favorito told The Post. “If you go after a nontraditional naming rights deal, you probably ask them for a lot more money.”

That’s because arena owners remember stadiums named after long-gone tech firms such as Baltimore’s PSINet Stadium and Boston’s CMGI field — both of which had to be re-christened after their namesakes imploded when the dot-com bubble burst in 2001.

bitcoin, coinbase, cryptocurrency, los angeles lakers, nba, nfl, nhl, staples

The home of the Baltimore Ravens had to be renamed after tech firm PSINet imploded in 2002.

Getty Images

“During the bubble, there were companies that bought in on buildings and went bankrupt and that was an extremely disappointing and troubling thing,” said Favorito, who added that scrubbing a defunct company’s name from a stadium can also damage a franchise’s brand and can reduce its appeal to future sponsors.

As a result, crypto firms with unproven track records have to make their offers so big that team owners “can’t take anything else,” according to Chris Lencheski, an ex-Comcast executive who has worked on arena naming deals. He compares the dynamic to the “tobacco premium” that cigarette makers had to pay for sports deals in the 20th century.

Beyond arena naming rights, crypto companies are also spending big on other sports deals.

bitcoin, coinbase, cryptocurrency, los angeles lakers, nba, nfl, nhl, staples

Tom Brady and Gisele Bündchen starred in a $20 million ad campaign for FTX in October.

Getty Images

Tampa Bay Buccaneers quarterback Tom Brady and his supermodel wife Gisele Bündchen starred in a $20 million ad campaign for FTX in October, while American crypto exchange Coinbase paid an undisclosed amount to become the NBA’s first-ever “crypto sponsor” the same month.

Crypto.com also paid $175 million in July to plaster its name on Ultimate Fighting Championship posters and merch for 10 years. StormX, a startup that pays out crypto cash-back awards on online purchases, signed a multiyear deal to adorn Portland Trail Blazers jerseys with a logo patch in July.

“These companies are in a mad dash to get their name out there and put their stake in the ground,” said Woody Thompson, executive vice president at sports and entertainment marketing firm Octagon.

The premium prices venture capital-flush crypto companies are willing to pay for ad space are likely to raise advertising costs across the board, forcing traditional advertisers like car, retail and beverage companies to shell out more money, Thompson said.

“This is what happened with the dot-com boom” he noted.

As lawmakers and regulators debate how to oversee the booming crypto industry, teams and arenas in the Washington, DC, area are seeing especially high interest from crypto companies and other new financial technology firms, according to Favorito.

“In Washington, the people who are going to games are lobbyists and senators and you want to be front and center with them in their space,” he said. “Nobody’s really talked about the casual lobbying that goes on at a hockey game or a football game.”

bitcoin, coinbase, cryptocurrency, los angeles lakers, nba, nfl, nhl, staples

In March, Bahamas-based crypto exchange FTX shelled out $135 million to rename the home of the Miami Heat.

Shutterstock / Johnny Michael

Crypto.com, FTX and StormX didn’t respond to requests for comment. Nor did the Portland Trail Blazers, the UFC, the FTX Arena or AEG Worldwide, which owns the Staples Center.

Coinbase spokesman Andrew Schmitt declined to provide details of the company’s NBA deal.

News Related

OTHER NEWS

Companies continue to fly less, but KLM assumes ‘sustainable recovery'

The ambition of multinationals to fly less for business is still very much alive. Large companies such as ING, ABN Amro and Arcadis are aiming to halve the number of ... Read more »

China drafts new rules to allow gene edited crops to overhaul seed industry

China has published trial rules for the approval of gene-edited plants, paving the way for faster improvements to crops. The new guidelines, published by the Ministry of Agriculture and Rural ... Read more »

Indian rupee slips 7 paise to 74.67 against US dollar in early trade

Representative image The rupee declined 7 paise to 74.67 against the US dollar in opening trade on Tuesday weighed down by the strength of the American currency and muted domestic ... Read more »

East Delhi MP Gautam Gambhir tests positive for COVID-19

The Gautam Gambhir Foundation was found to be ‘unauthorisedly’ stocking and giving the drug to COVID-19 patients. Lok Sabha member from East Delhi Gautam Gambhir on Tuesday said he has ... Read more »

Maruti Suzuki Q3 results preview – A better quarter sequentially, but not completely out of the rut

Maruti Suzuki India, India’s largest passenger vehicle manufacturer, is expected to report a sharp drop in profit from a year ago when it declares its third-quarter results on January 25. ... Read more »

Lured by instant loans from fintechs? Avoid these 10 mistakes

Representative image Gaurav Jalan Since instant digital loans are relatively easy to procure these days, a person under financial pressure may be tempted to take one without thinking things through. ... Read more »

Australia PM Scott Morrison loses control of WeChat Chinese account as election looms

A little-known Chinese technology company that took over a WeChat social media account set up for Australia‘s Prime Minister Scott Morrison said on Monday it wanted to buy an account ... Read more »

Sensex, Nifty stage sharp recovery led by metals, telecom, power, financials and pharma

Sensex and Nifty recovered from a fall of over 1000 points each in the morning amid mixed global cues, as metals, telecom, power, financials and pharma stocks bounced back on India’s ... Read more »

After the recent volatility, what should investors in cryptocurrencies do?

Sidharth Sogani Just last week, 44-year-old Changpeng Zhao, CEO of cryptocurrency exchange Binance, became one of the richest persons in the world with a net worth of $96.9 billion. However, ... Read more »

Ramco Cements Consolidated December 2021 Net Sales at Rs 1,552.50 crore, up 15.52% Y-o-Y

Reported Consolidated quarterly numbers for The Ramco Cements are: Net Sales at Rs 1,552.50 crore in December 2021 up 15.52% from Rs. 1,343.89 crore in December 2020. Quarterly Net Profit ... Read more »

North Korea appears to have fired cruise missiles

North Korea fired what appeared to be two cruise missiles into the sea off its east coast earlier on Tuesday, Yonhap news reported citing military sources, days after a flurry ... Read more »

Indo Amines Consolidated December 2021 Net Sales at Rs 211.57 crore, up 48.79% Y-o-Y

Reported Consolidated quarterly numbers for Indo Amines are: Net Sales at Rs 211.57 crore in December 2021 up 48.79% from Rs. 142.19 crore in December 2020. Quarterly Net Profit at ... Read more »

Zensar Tech Consolidated December 2021 Net Sales at Rs 1,102.50 crore, up 17.99% Y-o-Y

Reported Consolidated quarterly numbers for Zensar Technologies are: Net Sales at Rs 1,102.50 crore in December 2021 up 17.99% from Rs. 934.41 crore in December 2020. Quarterly Net Profit at ... Read more »

Deepak Nitrite Consolidated December 2021 Net Sales at Rs 1,722.27 crore, up 39.49% Y-o-Y

Reported Consolidated quarterly numbers for Deepak Nitrite are: Net Sales at Rs 1,722.27 crore in December 2021 up 39.49% from Rs. 1,234.69 crore in December 2020. Quarterly Net Profit at ... Read more »

Mahindra EPC Consolidated December 2021 Net Sales at Rs 51.13 crore, down 36.66% Y-o-Y

Reported Consolidated quarterly numbers for Mahindra EPC Irrigation are: Net Sales at Rs 51.13 crore in December 2021 down 36.66% from Rs. 80.73 crore in December 2020. Quarterly Net Loss ... Read more »

ICICI Bank Standalone December 2021 Net Interest Income (NII) at Rs 12,236.04 crore, up 23.44% Y-o-Y

Reported Standalone quarterly numbers for ICICI Bank are: Net Interest Income (NII) at Rs 12,236.04 crore in December 2021 up 23.44% from Rs. 9912.46 crore in December 2020. Quarterly Net ... Read more »

Shriram Trans Consolidated December 2021 Net Sales at Rs 4,827.86 crore, up 8.78% Y-o-Y

Reported Consolidated quarterly numbers for Shriram Transport Finance Corporation are: Net Sales at Rs 4,827.86 crore in December 2021 up 8.78% from Rs. 4,438.37 crore in December 2020. Quarterly Net ... Read more »

IEX Consolidated December 2021 Net Sales at Rs 117.54 crore, up 37.91% Y-o-Y

Reported Consolidated quarterly numbers for Indian Energy Exchange are: Net Sales at Rs 117.54 crore in December 2021 up 37.91% from Rs. 85.23 crore in December 2020. Quarterly Net Profit ... Read more »

Yes Bank Standalone December 2021 Net Interest Income (NII) at Rs 1,763.98 crore, down 31.11% Y-o-Y

Reported Standalone quarterly numbers for Yes Bank are: Net Interest Income (NII) at Rs 1,763.98 crore in December 2021 down 31.11% from Rs. 2560.42 crore in December 2020. Quarterly Net ... Read more »

IDBI Bank Standalone December 2021 Net Interest Income (NII) at Rs 2,382.52 crore, up 31.67% Y-o-Y

Reported Standalone quarterly numbers for IDBI Bank are: Net Interest Income (NII) at Rs 2,382.52 crore in December 2021 up 31.67% from Rs. 1809.52 crore in December 2020. Quarterly Net ... Read more »

Parsharti Ind Standalone December 2021 Net Sales at Rs 0.94 crore, up 1706.23% Y-o-Y

Reported Standalone quarterly numbers for Parsharti Investments are: Net Sales at Rs 0.94 crore in December 2021 up 1706.23% from Rs. 0.05 crore in December 2020. Quarterly Net Loss at ... Read more »

Bandhan Bank Standalone December 2021 Net Interest Income (NII) at Rs 2,124.70 crore, up 2.56% Y-o-Y

Reported Standalone quarterly numbers for Bandhan Bank are: Net Interest Income (NII) at Rs 2,124.70 crore in December 2021 up 2.56% from Rs. 2071.7338 crore in December 2020. Quarterly Net ... Read more »

Shriram Transport share price gains even as profit dips in Q3, CLSA upgrades it to 'buy'

Shriram Transport Finance Corporation’s share price rose 4 percent intraday on January 25, a day after the non-banking finance company  (NBFC) reported a 6.4 percent fall in its December quarter ... Read more »

Top 10 stocks that mutual funds exited amidst the recent market fall

Domestic equity markets have been on a downtrend in recent months. Experts attribute the fall to the negative trend in global markets coupled with unabated foreign fund outflows. Taking a cautious ... Read more »

IDBI Gold ETF Standalone December 2021 Net Interest Income (NII) at Rs 2,382.52 crore, up 31.67% Y-o-Y

Reported Standalone quarterly numbers for IDBI Gold ETF are: Net Interest Income (NII) at Rs 2,382.52 crore in December 2021 up 31.67% from Rs. 1809.52 crore in December 2020. Quarterly ... Read more »

IDBI Div 95 Standalone December 2021 Net Interest Income (NII) at Rs 2,382.52 crore, up 31.67% Y-o-Y

Reported Standalone quarterly numbers for IDBI Div I NIT 95 are: Net Interest Income (NII) at Rs 2,382.52 crore in December 2021 up 31.67% from Rs. 1809.52 crore in December ... Read more »

OM Infra Consolidated December 2021 Net Sales at Rs 66.34 crore, up 42.12% Y-o-Y

Reported Consolidated quarterly numbers for OM Infra are: Net Sales at Rs 66.34 crore in December 2021 up 42.12% from Rs. 46.68 crore in December 2020. Quarterly Net Profit at ... Read more »

Sylph Tech Standalone December 2021 Net Sales at Rs 0.01 crore, up 116.67% Y-o-Y

Reported Standalone quarterly numbers for Sylph Technologies are: Net Sales at Rs 0.01 crore in December 2021 up 116.67% from Rs. 0.01 crore in December 2020. Quarterly Net Loss at ... Read more »

Shriram Trans Standalone December 2021 Net Sales at Rs 4,827.86 crore, up 8.78% Y-o-Y

Reported Standalone quarterly numbers for Shriram Transport Finance Corporation are: Net Sales at Rs 4,827.86 crore in December 2021 up 8.78% from Rs. 4,438.37 crore in December 2020. Quarterly Net ... Read more »

S E Power Consolidated December 2021 Net Sales at Rs 12.52 crore, up 58.4% Y-o-Y

Reported Consolidated quarterly numbers for S E Power are: Net Sales at Rs 12.52 crore in December 2021 up 58.4% from Rs. 7.91 crore in December 2020. Quarterly Net Loss ... Read more »

Hilton Metal Standalone December 2021 Net Sales at Rs 25.13 crore, up 7.83% Y-o-Y

Reported Standalone quarterly numbers for Hilton Metal Forging are: Net Sales at Rs 25.13 crore in December 2021 up 7.83% from Rs. 23.31 crore in December 2020. Quarterly Net Profit ... Read more »

PNB Housing Fin Standalone December 2021 Net Sales at Rs 1,482.23 crore, down 20.85% Y-o-Y

Reported Standalone quarterly numbers for PNB Housing Finance are: Net Sales at Rs 1,482.23 crore in December 2021 down 20.85% from Rs. 1,872.77 crore in December 2020. Quarterly Net Profit ... Read more »

Sawaca Business Standalone December 2021 Net Sales at Rs 0.17 crore, up 4.18% Y-o-Y

Reported Standalone quarterly numbers for Sawaca Business Machines are: Net Sales at Rs 0.17 crore in December 2021 up 4.18% from Rs. 0.16 crore in December 2020. Quarterly Net Profit ... Read more »

SBI Life Insura Standalone December 2021 Net Sales at Rs 390.75 crore, up 62.7% Y-o-Y

Reported Standalone quarterly numbers for SBI Life Insurance Company are: Net Sales at Rs 390.75 crore in December 2021 up 62.7% from Rs. 240.16 crore in December 2020. Quarterly Net ... Read more »

Elixir Cap Standalone December 2021 Net Sales at Rs 0.12 crore, down 87.45% Y-o-Y

Reported Standalone quarterly numbers for Elixir Capital are: Net Sales at Rs 0.12 crore in December 2021 down 87.45% from Rs. 0.94 crore in December 2020. Quarterly Net Profit at ... Read more »

Eco Recycling Standalone December 2021 Net Sales at Rs 2.75 crore, down 49.45% Y-o-Y

Reported Standalone quarterly numbers for Eco Recycling are: Net Sales at Rs 2.75 crore in December 2021 down 49.45% from Rs. 5.44 crore in December 2020. Quarterly Net Profit at ... Read more »

Vakrangee Standalone December 2021 Net Sales at Rs 186.59 crore, up 238.29% Y-o-Y

Reported Standalone quarterly numbers for Vakrangee are: Net Sales at Rs 186.59 crore in December 2021 up 238.29% from Rs. 55.16 crore in December 2020. Quarterly Net Profit at Rs. ... Read more »

Gland Standalone December 2021 Net Sales at Rs 1,063.33 crore, up 23.73% Y-o-Y

Reported Standalone quarterly numbers for Gland Pharma are: Net Sales at Rs 1,063.33 crore in December 2021 up 23.73% from Rs. 859.42 crore in December 2020. Quarterly Net Profit at ... Read more »

Wendt Standalone December 2021 Net Sales at Rs 36.75 crore, up 18.78% Y-o-Y

Reported Standalone quarterly numbers for Wendt (India) are: Net Sales at Rs 36.75 crore in December 2021 up 18.78% from Rs. 30.94 crore in December 2020. Quarterly Net Profit at ... Read more »

VST Standalone December 2021 Net Sales at Rs 431.48 crore, up 50.39% Y-o-Y

Reported Standalone quarterly numbers for VST Industries are: Net Sales at Rs 431.48 crore in December 2021 up 50.39% from Rs. 286.90 crore in December 2020. Quarterly Net Profit at ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic