NBA sponsorships reached a new high of $1.6 billion thanks to crypto industry!

NBA sponsorships reached a new high of $1.6 billion thanks to crypto industry

According to research from IEG, a sports partnerships consultancy firm, crypto deals resulted to record sponsorship revenue for the NBA, which reached $1.6 billion in the 2021-22 season. During the 2018-19 season and the 2020-21 season, the NBA received $1.2 billion and $1.4 billion in sponsorships, respectively.

However, the crypto category took home the most sponsorships this season. After technology, it’s the second most profitable category. According to IEG data, the technology category provided little over $170 million, while the crypto category contributed around $150 million.

“The cryptocurrency category’s sponsorship sending spree is like nothing we have ever seen before,” IEG’s global managing director Peter Laatz said.

Non-arena naming rights or the display of crypto firm logos and names on players’ shirts are examples of crypto sponsorships. According to reports, the NBA is anticipating more than $200 million in revenue from player shirt sales alone. 

Coinbase was the first cryptocurrency firm to sign on as an NBA sponsor in October 2021. The cryptocurrency exchange used all NBA channels, including the WNBA and USA Basketball, to promote the $192 million sponsorship.

Sponsorships on a team basis were also on the rise. Crypto.com purchased the naming rights to the Los Angeles Lakers’ Staples Center for $700 million in November 2021, renaming it the “Crypto.com Arena.”

The Golden State Warriors sold their worldwide rights to FTX for $10 million in December 2021. The FTX logo will feature on the team’s jerseys as well. Warriors, on the other hand, extended its contract with Rakuten, a Japanese e-commerce business, in early May 2022. According to reports, the Warriors will receive $40 million each year from the contract.

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