Why were the LA Sparks of the WNBA excluded from the partnership with Crypto.com?

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When Crypto.com and AEG announced Wednesday that they had signed a 20-year, $ 700 million naming rights agreement for the venue, formerly known as Staples Center, the joint press release called out the four main professional teams who are currently calling the place. home: the Los Angeles Lakers and LA Clippers of the NBA, the LA Kings of the NHL and the Los Angeles Sparks of the WNBA.

But the statement went on to state that Crypto.com would be an official cryptocurrency platform for just two of those teams: the Los Angeles Lakers and LA Kings.

It’s understandable that the Clippers aren’t included in such a partnership as the franchise leaves Staples Center to enter Intuit Dome’s 1.2 billion in 2024. But the absence of the Sparks – who called the Staples Center at home since 2001 – was quickly noticed, especially by Sparks head coach Derek Fisher:

It will take some getting used to, but be sure to save some room for @LASparks! #wnba #womenplaysportstoo

– Derek Fisher (@derekfisher) November 17, 2021

A source close to the Sparks said the team had not been included in any conversations related to the name change or the partnership agreement, but said the Sparks and Crypto.com are now in contact.

So who decided to leave the Sparks behind at the start?

It is complicated.

AEG Vice President of Communications Michael Roth provided NBC Sports with the following statement: “The Los Angeles Sparks have been included in the arena naming rights press release. However, AEG is currently in negotiations with the Sparks over a new lease extension for the upcoming season, and until it is finalized the company is unable to facilitate discussions regarding sponsorship opportunities. potential with the franchise. Once the contract is signed, we plan to meet with Sparks management to discuss potential sponsorship opportunities related to Crypto.com Arena.

While the Sparks have three WNBA championship banners hanging at Staples Center, the venue was not the team’s full-time home in 2021. The Sparks have played 11 of their first 16 home games at the Los Angeles Convention Center , following the Clippers’ NBA Playoff Race.

As for Crypto.com, a company spokesperson made the following statement to NBC Sports: “This deal was with AEG. AEG does not have any ownership rights in the Sparks. We have ongoing conversations with female teams as part of our global partnership strategy. “

While it is true that AEG does not own the Sparks, society no longer owns the Lakers either. Earlier this year, AEG founder Phillip Anschutz sold his 27% minority stake in the team to Los Angeles Dodgers co-owners Mark Walter and Todd Boehly. However, the sale did not impact the Lakers’ status in the Staples Center / Crypto.com arena owned by AEG. The team will remain in the building until the 2041 season thanks to a lease extension signed earlier this year.

As for Crypto.com’s claim that it has conversations going on with female teams, those conversations have yet to turn into anything more substantial based on the company’s list of current partners. When Crypto.com announced a deal with Paris Saint-Germain in September, the PSG women’s team did not appear to have been included. Earlier this year, Crypto.com also signed a two-year partnership with the International Hockey Federation, but only to sponsor the men’s world championship tournament.

So what does this mean for the Sparks?

Update: On Thursday night, the Sparks released their own statement: “The LA Sparks have a long-standing 20-year partnership with AEG and Staples Center, a building where we have won three WNBA Championships and showcased the talents of the greatest. . female basketball players around the world. While the Sparks are in the process of negotiating a standard lease, we are excited to play basketball in the new Crypto.com arena in the future. Since the naming rights announcement, Crypto.com has initiated a positive dialogue with Sparks regarding partnership opportunities. We remain optimistic about our ongoing lease negotiations as well as our initial conversations with Crypto.com. “

When AEG decided to partner with Crypto.com, it took a risk, especially given the volatile nature of cryptocurrency.

Stadia naming rights deals have already collapsed, including several in the wake of the dot-com bubble burst. In 2000, CGMI struck a 15-year, $ 114 million deal for the naming rights of the New England Patriots stadium, but the deal fell through after the company’s stock price rose from $ 40 to a few cents.

If the Sparks and AEG renew their lease, the Sparks seem like a clear choice for a cryptocurrency platform partnership. Because if there is one thing in common between the cryptocurrency teams and WNBA, it is their strong growth potential.

Most men’s sports leagues have seen ratings decline in recent years – especially during the pandemic – but the WNBA has seen its 2021 regular season audience increase 49% from 2020 and 24% from 2020. to 2019. And while the WNBA as a whole currently does not. Generating a profit is the result of missed marketing and partnership opportunities, not the quality of the game on the pitch.

Follow Alex Azzi on Twitter @AlexAzziNBC

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