Come Christmas Day, the venue now known as Staples Center will be renamed Crypto.com Arena after the cryptocurrency and payment platform bought the naming rights to the longtime home of the Los Angeles Lakers, Kings, Sparks and (for now) Clippers for more than $700 million. Industry insiders have long assumed sports betting would be the category that drives sponsorship revenues to new heights. But SponsorUnited founder and president Bob Lynch said there is no doubt that “crypto [and blockchain] will far exceed sports betting within the sponsorship space” over the next decade.
JWS’ Take: The $700 million-plus figure is the most a corporate sponsor has ever agreed to pay on a stadium naming rights deal. SoFi, the previous record holder, committed $600 million in 2019 to place its name on Los Angeles’ football stadium. Of course, SoFi Stadium was a new building. Crypto.com Arena is more than 20 years old.
Based on other NBA and NHL arena naming rights deals (see: Ball Arena, ~$8 million/year; Capital One Arena, ~$10.5 million/year; Chase Center, ~$20.5 million/year), it certainly appears as if Crypto.com is overpaying, at a reported $35 million per year (on average). But as Lynch explained, the company is buying more than naming rights. “They’re essentially buying equity,” which would be particularly valuable in an industry that is still widely doubted, he said. “The Lakers and Clippers have global exposure, media value and mentions that give instant brand legitimacy with top-of-mind awareness through national/global TV exposure,” he added. The venue will host LA28 events too.
Continue reading: https://www.sportico.com/business/sponsorship/2021/crypto-blockchain-sport-sponsorship-1234647452/
JWS’ Take: The $700 million-plus figure is the most a corporate sponsor has ever agreed to pay on a stadium naming rights deal. SoFi, the previous record holder, committed $600 million in 2019 to place its name on Los Angeles’ football stadium. Of course, SoFi Stadium was a new building. Crypto.com Arena is more than 20 years old.
Based on other NBA and NHL arena naming rights deals (see: Ball Arena, ~$8 million/year; Capital One Arena, ~$10.5 million/year; Chase Center, ~$20.5 million/year), it certainly appears as if Crypto.com is overpaying, at a reported $35 million per year (on average). But as Lynch explained, the company is buying more than naming rights. “They’re essentially buying equity,” which would be particularly valuable in an industry that is still widely doubted, he said. “The Lakers and Clippers have global exposure, media value and mentions that give instant brand legitimacy with top-of-mind awareness through national/global TV exposure,” he added. The venue will host LA28 events too.
Continue reading: https://www.sportico.com/business/sponsorship/2021/crypto-blockchain-sport-sponsorship-1234647452/
