Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

A crypto-heavy NBA season comes to an end

A crypto-heavy NBA season comes to an end

As the Golden State Warriors and their star point guard Steph Curry surged ahead of the Boston Celtics in Game 6 on Thursday to win their fourth NBA championship in eight seasons, it should also have been a win for the crypto industry.

The Warriors were said to have previously inked a sponsorship deal with FTX, a cryptocurrency exchange, reportedly worth $10 million. Curry himself earlier this year appeared in a commercial for FTX, in which he repeatedly notes he is not an expert on crypto. And the industry featured in the commercials during the finals, including an advertisement from Coinbase, another exchange, mocking crypto doubters by showing different tweets over the years claiming "Crypto is dead," followed by the words, "Long live crypto."

But as an NBA season and post-season awash in cryptocurrency sponsorships came to a close this week, the crypto industry was confronting new challenges. The price of many cryptocurrencies has plummeted, with Bitcoin falling to just above $20,000 this week, down from an all-time high of nearly $69,000 in November. Meanwhile, a wave of layoffs has spread throughout the sector to brace for a possible prolonged economic downturn. Now, the optics of those deals may have changed.

Any sports fan this year has been bombarded with crypto, including advertisements, arena name changes, logos on jerseys and NFT offerings. But even by that standard, the NBA has stood out. In just the last year, crypto jumped to the second highest spending sector in NBA sponsorships, up from 43rd, according to IEG, a sports partnerships consultancy. Cryptocurrency brands spent more than $130 million on NBA sponsorship this season, up from less than $2 million last season, according to the firm.

"The influx of spending is like nothing we've ever seen before. I would have expected that to be potentially a little bit more measured, but it has been completely like literally a runaway train," Peter Laatz, Global Managing Director at IEG, told CNN Business. "They were sort of spraying money everywhere."

Just five crypto companies, including Crypto.com, Coinbase and FTX, were responsible for 92% of the sector spending that helped the NBA reach $1.6 billion in annual sponsorship fees this season, according to IEG. The firm described the spending between the companies as a "bit of an arms race."

Then the market shifted. On Tuesday, one day after Coinbase aired its "long live crypto" commercial during Game 5, the startup announced laying off 1,100 people. In an email to staff, Coinbase CEO Brian Armstrong noted the possibility of a recession, which he said "could lead to another crypto winter, and could last for an extended period."

Stephen Curry of the Golden State Warriors dribbles during 2022 NBA Finals Practice and Media Availability on June 15, 2022 at the TD Garden in Boston, Massachusetts.


Coinbase said the commercial was a set part of their standing deal with the NBA, as the firm inked a multiyear agreement in October with the league to serve as the exclusive cryptocurrency platform partner of the NBA and WNBA. "This commercial was part of a prearranged package that came with our sponsorship of the NBA," according to a company spokesperson.

Crypto.com, another cryptocurrency exchange, purchased the naming rights for the Los Angeles Lakers' stadium in November, a deal reportedly worth $700 million. It also entered a multiyear deal to become the Philadelphia 76ers' official jersey patch partner. Crypto.com announced this week that it is laying off 260 employees due to the market downturn.

In a statement, the company said it remains "focused on investing resources into product and engineering capabilities to develop world-class products, as well as our strategic sports partnerships and believe they will continue to play a crucial role in our mission to accelerate the world's transition to cryptocurrency."

Binance, the rare crypto company to be hiring right now, recently appeared to take a dig at the sponsorship deals other startups entered into. In a hiring announcement, Binance CEO Changpeng Zhao said: "It was not easy saying no to Super Bowl ads, stadium naming rights, large sponsor deals a few months ago, but we did."

Laatz, from IEG, said the "only thing" he can think to compare the crypto sponsorhip deals to is business spending activity during the dot-com bubble."There were xyz.com arenas popping up all over the place back in the day and that whole thing blew up and the deals went away," he said.

But as long as the sponsorship checks keep coming in, the NBA won't feel the pain, Laatz said. "The teams... would take that money over and over again," he said. "Getting it for a couple of years is better than getting nothing."

With or without the same number of sponsorship deals in the future, there are other ways the close tie-up between the NBA and the larger crypto industry may continue, including through NFTs, which are pieces of digital content linked to the blockchain, the digital database underpinning cryptocurrencies.

The NBA is involved in the NFT market with NBA Top Shot, a League-focused NFT marketplace that allows fans to buy, sell and trade basketball highlights, or "Moments." Top Shot, launched by Dapper Labs, was released to the public in October 2020 and has big name investors in the game, including Michael Jordan and Kevin Durant.

Newsletter

Related Articles

0:00
0:00
Close
Unelected PM of the UK holds an emergency meeting because a candidate got voted in… which he says is a threat to democracy…
Farmers break through police barriers in Brussels.
Ukraine Arrests Father-Son Duo In Lockbit Cybercrime Bust
US Offers $15 Million For Info On Leaders Of Cybercrime Group Lockbit
Apple warns against drying iPhones with rice
Alexei Navalny: UK sanctions Russian prison chiefs after activist's death
German economy is in 'troubled waters' - ministry
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
Tucker Carlson says Boris Johnson wants "a million dollars, in Bitcoin or cash, from Tucker Carlson to talk about Ukraine.
Russia is rebuilding capacity to destabilize European countries, new UK report warns
EU Commission wants anti-drone defenses at Brussels HQ
Von der Leyen’s 2nd-term pitch: More military might, less climate talk
EU Investigates TikTok for Child Safety Concerns
EU Launches Probe Into TikTok Over Child Protection Under Digital Content Law
EU and UK Announce Joint Effort on Migration
Ministers Confirm Proposal to Prohibit Mobile Phone Usage in English Schools
Avdiivka - Symbol Of Ukrainian Resistance Now In Control Of Russian Troops
"Historic Step": Zelensky Signs Security Pact With Germany
"Historic Step": Zelensky Signs Security Pact With Germany
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
Tucker Carlson grocery shopping in Russia. This is so interesting.
France and Germany Struggle to Align on European Defense Strategy
‘A lot higher than we expected’: Russian arms production worries Europe’s war planners
Greece Legalizes Same-Sex Marriage and Adoption Rights
Russia "Very Close" To Creating Cancer Vaccines, Says Vladimir Putin
Hungarian Foreign Minister: Europeans will lose Europe, the Union's policy must change drastically
Microsoft says it caught hackers from China, Russia and Iran using its AI tools
US Rejects Putin's Ceasefire Offer in Ukraine
The Dangers of Wildfire Smoke and Self-Protection Strategies
A Londoner has been arrested for expressing his Christian beliefs.
Chinese Women Favor AI Boyfriends Over Humans
Greece must address role in migrant vessel disaster that killed 600: Amnesty
Google pledges 25 million euros to boost AI skills in Europe
Hungarian President Katalin Novák Steps Down Amid Pardon Controversy
Activist crashes Hillary Clinton's speech, calls her a 'war criminal.'
In El Salvador, the 'Trump of Latin America' stuns the world with a speech slamming woke policing after winning a landslide election
Trudeau reacts to Putin's mention of Canadian Parliament applauding a former Ukrainian Nazi in his interview with Tucker Carlson.
The Spanish police blocked the farmers protest. So the farmers went out and moved the police car out of the way.
Volodymyr Zelenskiy fires top Ukraine army commander
Tucker Carlson's interview with Vladimir Putin raises EU concerns
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
Russia's Economy Expands by 3.6% Due to Increased Military Spending
Ukraine MPs Vote To Permit Use Of Dead Soldiers' Sperm
German Princess Becomes First Aristocrat To Pose Naked On Playboy Cover
UK’s King Charles III diagnosed with cancer
EU's Ursula von der Leyen Confronts Farmer Protests Amid Land Policy Debates
Distinguishing Between Harmful AI Media and Positive AI-Generated Content: A Crucial Challenge for the EU
Tucker Carlson explains why he interviewed Putin
Dutch farmers are still protesting in the Netherlands against the government, following the World Economic Forum's call for 'owning nothing.'
Hungarian Prime Minister Viktor Orbán stands up for European farmers and says, 'Brussels is suffocating European farmers.
×