Crypto.com Spends $ 700 Million In Cash To Rename Staples Center

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Crypto.com has entered into a 20-year deal with AEG, owner and operator of Staples Center in Los Angeles, to rename one of America’s most famous sports and entertainment venues.

Staples Center, the official headquarters of four professional sports franchises – the basketball Lakers, Clippers and Sparks and ice hockey Kings – will be renamed Crypto.com Arena. The center has also hosted more than 15 GRAMMY Awards shows. The next GRAMMY Awards in January will also be held in the same center.

Crypto.com has agreed to pay AEG $ 700 million for the naming rights, a source with knowledge of the deal told The Block. This makes it one of the biggest sponsorship deals in the history of sport.

Notably, the deal is entirely in cash and not in crypto, a spokesperson for Crypto.com told The Block.

Staples Center rebranding

The Staples Center rebranding will take effect on December 25, and physical signage is expected to change by June of next year.

This is the first time the centre’s name has changed since it opened in 1999. At the time, Staples, an American office supplies retailer, spent $ 120 million to put its name on the center for 20 years.

“This [new] partnership is about the future, ”AEG CEO and Chairman Dan Beckerman said in a statement. “AEG and Crypto.com not only share a vision for innovation and the future of sport and entertainment, but we also have a common commitment to our communities where we work and live.”

Crypto companies have spent millions of dollars on sports sponsorship deals. FTX, Coinbase, Binance, and BitMEX have all signed such partnerships with various sports organizations, including football, basketball, baseball, cricket, and Formula 1 teams.

One of the main goals of these companies seems to be to bring mainstream users into the world of crypto.

Crypto.com was founded in 2016 and is headquartered in Singapore. It has grown into one of the largest crypto companies, employing over 2,600 people with offices around the world. The company’s key offering is an app that allows users to buy and sell cryptocurrency.

© 2021 The Block Crypto, Inc. All rights reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial or other advice.

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