Crypto brands penetrate the sports field

Crypto brands penetrate the sports field

Recently, a certain encrypted trading platform and arena operator AEG signed a 20-year contract worth 700 million U.S. dollars: On December 25, Los Angeles’ iconic arena “Staples Center” will be renamed when the Los Angeles Lakers will face the Brooklyn Nets.

Old Lakers fans know that since 1999, Staples has paid more than $116 million for the naming rights of the Los Angeles Arena for more than 20 years. In addition to sports events, the venue is also a venue for significant events such as the Grammy Awards. It occupies an important position in the cultural landscape of Los Angeles. The CEO of a the platform believes, “In the next few years, people will look back at this moment because this is the moment when the crypto industry crosses the chasm and merges into the mainstream.”

The President and CEO of AEG said, “The platform is looking for the unique brand platform to promote adoption, and AEG is also looking for an innovative and forward-looking company to chart the future of sports and entertainment activities.”

The platform already has several commercial sports partners. For example, the platform and the NBA Philadelphia 76ers will add a brand patch to their jerseys for the next 6 years, and the first NFT launched by the Philadelphia 76ers is also available through the platform NFT website. Earlier this year, the platform also signed an agreement with the Montreal Canadiens of the Ice Hockey League and a $100 million sponsorship to maintain the brand’s exposure in the Formula One Sprint series. Furthermore, the platform also paid US$175 million to the Ultimate Fighting Championship (UFC) in the form of a sponsorship agreement over the next 5 years. In addition, the platform also sponsored the French football club Paris Saint-Germain.

In addition, FTX and Coinbase are also working on their marketing business in the sports field. For example, in March last year, the Miami Heat named their home stadium after FTX, with a cooperation period of 19 years and a value of $135 million. From the perspective of transaction volume data, the penetration of trading platforms into the sports field is more significant. Although it does not prove that the increase in transaction volume is directly caused by such marketing, these trading platforms have tasted the sweetness.

FTX CEO SBF often publishes screenshots of FTX transaction volume on social media. He knows the importance of increasing brand awareness. Previously, in a media event, SBF said, “When someone wants to participate in the encryption field, we found that they have not heard of FTX. This is also an important reason FTX has invested so much in sports marketing.”

Market survey data also proves that the strategy for sports enthusiasts is correct: According to a recent poll conducted by Morning Consult, 39% of adults said they have a specific understanding of cryptocurrency, but in the segment of sports enthusiasts In the market, this figure is as high as 47%. Among the survey respondents, 27% of sports enthusiasts stated that they hold encrypted assets, and people’s familiarity with cryptocurrencies seems to be related to their participation in sports. 

As the crypto industry gains traction among retail investors in the United States and Europe, major sports leagues and clubs hope to alleviate the losses caused by the epidemic. More and more sports leagues are accepting sponsorship from crypto brands. Continue to strengthen in the next few years.

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