According to CNBC, cryptocurrency deals resulted in record sponsorship revenue for the NBA, reaching $1.6 billion in the 2021-22 season, citing research data from IEG, a sports partnerships consultancy firm.
In comparison, the NBA received $1.2 billion to $1.4 billion in sponsorships during the 2018-19 and 2020-21 seasons, respectively.
However, the crypto category emerged as the season's sponsorship winner. It is the second most profitable industry after technology. According to IEG data, the technology category contributed slightly more than $170 million, while the crypto category contributed roughly $150 million.
“The cryptocurrency category’s sponsorship sending spree is like nothing we have ever seen before, representing 1/3 of all new NBA sponsorship deals,” said Peter J. Laatz, IEG Global Managing Director
Non-arena naming rights or displaying crypto company logos and names on players' shirts are examples of crypto sponsorships.
According to reports, the NBA expects to make more than $200 million from deals on players' shirts alone.
Partnerships
Coinbase was the first cryptocurrency company to sign a sponsorship agreement with the NBA, which was signed in October 2021. Coinbase leveraged all NBA platforms, including WNBA and USA Basketball, for the $192 million sponsorship.
Team-based sponsorships were also on the rise. Crypto.com paid $700 million for the naming rights to the Los Angeles Lakers' Staples Center in November 2021, renaming it the "Crypto.com Arena."
The Brooklyn Nets have also begun a multi-year jersey partnership with the trading platform Webull, for which they have agreed to receive $30 million per year. The terms of the transaction were not disclosed.
The Golden State Warriors sold their international rights to FTX for $10 million in December 2021. The FTX logo will also be featured on the team's jerseys. Warriors, on the other hand, renewed its contract with Japanese e-commerce company Rakuten in early May 2022. According to reports, the Warriors will earn $40 million per year from the contract.
Personal transactions
Individual agreements are also reached between players and cryptocurrency companies. Kevin Durant agreed to promote Coinbase across all of his major business platforms in December 2021, and LeBron James partnered with Crypto.com in January 2022 to help elementary school students learn about blockchain.
Meanwhile, Michael Jordan collaborated with Solana to launch a new community platform in December 2021. Spencer Dinwiddie and Bitrefill recently teamed up to create a Bitcoin sneaker.
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