FTX is one of five cryptocurrencies responsible for 92% of NBA spending in the booming sponsorship categoryFTX ARENA
Cryptocurrency brands spent more than $ 130M on NBA sponsorship during the ’21 -22 season, according to IEG’s Sponsorship Intelligence Database, up from less than $ 2M in ’20 -21. IEG Global Managing Dir Peter Laatz said the cryptocurrency category “makes spending like we haven’t seen yet,” which now represents one-third of all new NBA sponsorship deals. In one year, the category moved from 43rd to being the second-highest spending sector in the league behind only technology. Five cryptocurrency brands – Crypto.com, Webull, Coinbase, FTX and Socios – are responsible for 92% of spending in the sponsorship category.
NBA SPONS-O-METER: Overall, NBA teams, venues, and leagues brought in an estimated $ 1.64B in sponsorship rights fees in the ’21 -22 season, a 12.5% increase from ’20 -21. Since the NBA Finals are set to give out tomorrow night, here’s a look at the league sponsor’s overall picture:
- New sponsors of naming rights in the arena at the time include: cryptocurrency exchanges Crypto.com (Lakers) and FTX (Heat); environmental tech company Footprint (Suns); insurance company Gainbridge (Pacers); and online payroll provider Paycom (Thunder).
- NBA teams have signed nine new jersey patch sponsors: Webull (Nets); Crypto.com (76ers); Aura (Timberwolves); Fail (Lakers); Credit Karma (Rockets); Dialpad (Kings); Motorola (Bucks); StormX (Trail Blazers); and United Wholesale Mortgage (Pistons).
- New sponsors across the NBA league include Coinbase, Google, Caesars Sportsbook, LegalZoom.com, ServiceNow.com and Wilson.
- Top Spender Categories: Technology, cryptocurrency, banks, telecom and sports apparel lead in NBA sponsorship spending with more than $ 100M annually. Top spending companies with $ 50M+ annual sponsorship rights include official league partners Nike, Microsoft, AB InBev, Pepsi and AT&T.
- Most Active Sponsors include: Insurance, beer, retail, lottery and gaming and automotive are the most active brand categories in the entire NBA. All five categories have 70+ active deals. AB InBev, Pepsi, Socios, State Farm, Toyota and Verizon are the most active brands sponsoring the league and its teams; each brand currently has over 20 sponsorship deals. The IEG Market Meter is designed to measure the relative value of a sponsorship category for both buyers and sellers. For more data included from IEG and for other sponsorship metrics, see the newly updated SBJ Atlas.