Crypto.com buys Lakers’ Staples Center naming rights in $ 700 million deal

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An exterior view of the Staples Center in downtown Los Angeles on August 29, 2015 in Los Angeles, California.

Bauer-Griffin | GC Images | Getty Images

The Staples Center will be renamed Crypto.com next month as part of a $ 700 million naming rights deal for the Los Angeles Lakers’ national arena.

The deal, announced Tuesday night, ties Crypto.com to Anschutz Entertainment Group, owners of Staples Center and the surrounding complex, LA Live. The downtown arena is home to the Lakers, Clippers and Kings of the National Hockey League franchise.

Terms of the deal were not disclosed, but someone familiar with the deal told CNBC it was a 20-year contract worth $ 700 million.

This makes the deal one of the richest naming rights deals in sports. In September, Clippers, owned by Steve Ballmer, struck a $ 500 million deal with financial management technology company Intuit. And Chase Bank in 2016 struck a roughly $ 300 million 20-year naming rights deal with the Golden State Warriors.

Crypto.com’s 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. This game will air on Disney-owned ABC and ESPN.

“This partnership is about the future,” AEG Chairman and CEO Dan Beckerman said in a statement. “AEG and Crypto.com not only share a vision on innovation and the future of sports and entertainment, but we also have a common commitment to our communities where we work and live. We look forward to partnering with Crypto. com to create meaningful initiatives to bring this vision to life in the years to come. “

Staples reportedly paid $ 116 million over 20 years, starting in 1999, for the arena’s naming rights. The parties extended the deal in 2009 amid the Great Recession.

LeBron James # 23 of the Los Angeles Lakers walks for the basket against the Golden State Warriors during the 2021 NBA Play-In Tournament on May 19, 2021 at the STAPLES Center in Los Angeles, California.

Adam Pantozzi | National Basketball Association | Getty Images

The deal ties Crypto.com to one of the top brands in the NBA, delivering crucial brand awareness as the cryptocurrency platform positions itself to capture market share in the growing space of the digital currency.

The Lakers have won 17 NBA titles, tied for most in NBA history, and have one of the league’s biggest stars at LeBron James on their roster. The franchise is worth $ 5.5 billion, according to Forbes. It is third in the NBA behind the Warriors and New York Knicks.

Crypto.com has over 10 million users on its platform and allows users to buy and sell cryptocurrencies. The company earns revenue from transaction fees.

The company also has sports partnerships under a $ 100 million deal with Formula 1 and a sponsorship with the Montreal Canadiens NHL.

More sports leagues are embracing cryptocurrency sponsorships, as the digital currency market gains traction among retail investors and leagues and clubs seek to bounce back from losses from the Covid pandemic.

Major League Baseball and the New York-based Drone Racing League have also entered into crypto-related sponsorships. The Portland Trail Blazers have landed the NBA’s first crypto jersey patch. And the Miami Heat named their home arena after the FTX crypto platform last March. This agreement is for a period of 19 years and is valued at $ 135 million.

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