The Staples Center will be renamed Crypto.com in a $700 million deal for the naming rights. The name change will take effect on Christmas Day.
The Staples Center will be renamed for Crypto.com next month in a $700 million deal for the naming rights to the home arena of the Los Angeles Lakers and WNBA’s Sparks.
The deal, announced Tuesday night, links Crypto.com with Anschutz Entertainment Group, which owns the Staples Center and surrounding complex, L.A. Live. The downtown arena is the home court to the Lakers, Clippers, and National Hockey League’s Kings franchise.
The terms of the agreement were not disclosed, but AtoZ Markets gathered from a person familiar with the deal that it was a 20-year contract worth $700 million.
That makes the deal one of the richest naming rights agreements in sports. In September, the Steve Ballmer-owned Clippers agreed to a $500 million deal with financial management tech company Intuit. And Chase Bank in 2016 struck a 20-year, roughly $300 million naming rights deal with the Golden State Warriors.
Staples Center to be renamed Crypto.com Arena on Dec. 25
The Crypto.com name change will take effect on Christmas Day, as the Lakers host the Brooklyn Nets in the National Basketball Association’s annual Christmas Day games. That game will be aired on Disney-owned ABC and ESPN.
“This partnership is about the future,” AEG president and CEO Dan Beckerman said in a statement. “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 reportedly paid $116 million over 20 years, starting in 1999, for the naming rights to the arena. The parties extended the agreement in 2009 amid the Great Recession.
The deal links Crypto.com with one of the NBA’s top brands, offering crucial brand awareness as the cryptocurrency platform positions itself to capture market share in the growing digital currency space.
Founded in 2016, Crypto.com boasts more than 10 million users on its platform and allows users to buy and sell cryptocurrencies. The company earns revenue from transaction fees.
This is not the only high-profile sponsorship by the cryptocurrency exchange and debit card provider. Crypto.com also recently began a $100 million worldwide advertising campaign with Hollywood actor Matt Damon.
As AtoZ Markets reported, Crypto.com has also signed a five-year sponsorship deal worth more than $100 million with Formula 1.
The Singapore-based company has been on a roll, courting sponsorship deals with multiple brands in the sports world, indicating a growing desire to capture the attention of an important demographic market: affluent, young audiences with an eye toward video games and sports.
More sports leagues are embracing cryptocurrency sponsorships, as the digital currency market gains traction among retail investors and leagues and clubs seek to rebound from Covid pandemic losses.
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