Mark Weaden
The NBA has landed its first cryptocurrency sponsorship deal with leading crypto exchange platform Coinbase
Throughout the year, we’ve seen a variety of sponsorship deals between crypto businesses and sports teams and individuals. We’ve already seen deals between industry leaders and the UFC, NFL, Formula 1, and many more.
The multi-year deal will mean Coinbase is tied into the NBA for the long term. While the specific terms of the deal have not been made public as of yet, we do know that Coinbase will get branding across all major basketball leagues in the states; including WNBA, NBA G League, NBA 2K League, and USA Basketball.
What does the deal mean for the NBA?
The start of the new season this week marked the 75th anniversary of the National Basketball Association. The NBA has marked that celebration with an expansion into the cryptocurrency space, as the league embraces the future of finance with a major deal.
Coinbase is a publicly-traded company and commands a large percentage of the worlds’ cryptocurrency trading community, which is traded as “COIN” on the NASDAQ. The deal saw the stock price increase by 3.5% just after the announcement of the deal. With access to all of the basketball associations in the U.S., Coinbase is going to garner huge reach as a result of the deal.
With fans returning to the arenas this year, there’s never been a better time for Coinbase to complete a deal. Adam Silver stated that the league is projecting $10 billion in revenue for the 2021/22 season. While sponsorship deals make up a big portion of the revenue, fans in seats garner a much larger portion of the overall profit for the NBA. The Coinbase deal will boost the NBA’s revenue this year, although the details of the sponsorship deal are yet to be released.
Benefits for Coinbase
The fintech firm will increase its reach globally with this deal, opening the world up to blockchain technology and boosting the crypto economy at large. As such, the NBA will provide the company with presenting partner rights for the WNBA Commissioner’s Cup and the USA men’s and women’s national team exhibition tours.
The NBA is a great fit for Coinbase, as the sport, unlike hockey and American football, has a global appeal and has high viewing numbers the world over. The NBA has already sealed crypto-related partnerships, with the Blazers and Heat completing deals for arena naming rights.
