Cryptocurrency powering NBA sponsorships

NBA sponsorships have recently been powered by Cryptocurrency businesses, as revenue reaches a record $1.6 billion (USD) in the 2021-22 season.

The estimates were done by IEG sports partnership consultancy, who continued to find an increase of 13% from the 2020-21 season. Crypto partnerships have also become the second most profitable sponsorship for the NBA.

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

Certain teams in the NBA have partnered with Cryptocurrency businesses, including The Los Angeles Lakers who signed a 20-year naming rights contract with Crypto.com worth $700 million. FTX Crypto Trading Exchange secured a $10 million (USD) global rights agreement with the Warriors and secured arena naming rights for the Miami Heat.

Commented on the partnership, Crypto.com’s chief executive, Kris Marszalek, said: “In the next few years, people will look back at this moment as the moment when crypto crossed the chasm into the mainstream.”

“This is just such a brilliant move because the next decade belongs to crypto,” Marszalek said.

NBA is also expected to collect $200 million this season from ads on players’ jerseys. The Japanese e-commerce company, Rakuten, signed a $40 million jersey deal with the Warriors to pay them upwards of $40 million (USD) annually.

As the year unfolds the Cryptocurrency business will continue to fuel NBA sponsorships, as media tracking company, iSpot, recorded a $470.7 million (USD) on national ad spend in the 2022 season so far.