FTX Will Pay Golden State Warriors $ 10 Million For Global Rights

Stephen Curry # 30 of the Golden State Warriors lifts the ball in the second half of a game won by Utah Jazz 129-99 at the Vivint Smart Home Arena on January 30, 2018 in Salt Lake City, Utah.

Gene Sweeney Jr | Getty Images

Golden State Warriors have agreed to international rights sponsorship with the FTX crypto platform.

The terms of the deal were not made public, but people familiar with the deal told CNBC it was a multi-year deal, with a total value of over $ 10 million. People discussed the deal on condition of anonymity, as they are not authorized to discuss the specifics of the contract. This is the first global deal for $ 5.6 billion Golden State Warriors.

FTX, worth about $ 25 billion, is one of the largest digital currency exchanges in the world and competes with the likes of Coinbase, Binance, and Kraken.

“FTX is a company that caught our attention a couple of months ago,” Warrior President and COO Brandon Schneider told CNBC. “We think we are at the very beginning. We are all learning and this space will evolve a little, ”added Schneider.

This is the latest such deal for FTX, which has a referee soccer deal with Major League Baseball. He also won the rights to the Miami Heat arena name in a deal that was reportedly valued at $ 135 million over 19 years.

“We think they are a market leader in the right direction,” Schneider said of FTX.

The NBA has allowed clubs to use international agreements in 2019 in an effort to expand its global presence.

Sam Bankman-Freed, Co-Founder and Chief Executive Officer of FTX, Hong Kong, China, Tuesday 11 May 2021.

Lam Yik | Bloomberg | Getty Images

FTX gains brand positioning at Warriors’ G League and the NBA 2K esports team, arena signage at Chase Center, and team rights to non-fungible tokens (NFT).

FTX will also receive virtual inventory for games from the Warriors regional sports network. The digital logos are shown on television during local and national NBA games to resemble real floor signs. Industry insiders estimate that virtual advertising costs roughly $ 15,000 per quarter.

Most of the Warriors games are broadcast on RSN, owned by NBCUniversal, CNBC’s parent company.

Another dot-com bubble in sports?

Crypto companies have been actively seeking sports sponsorship in 2021, and the NBA has welcomed this attention.

The Coinbase logo is displayed in NBA arenas during ESPN and Turner Sports national games. People familiar with the deal told CNBC it was worth $ 192 million over four years.

Los Angeles Lakers renamed Staples Center as Arena in a $ 700 Million Deal. And in July, the Portland Trail Blazers received the league’s first patch for a crypto shirt featuring StormX.

Organizations like the National Football League remain wary of the crypto space, and it is rumored that cryptocurrency deals resemble sports sponsorship bubble featuring dot-coms.

In the era when the Internet was booming, tech companies invested in sports sponsorship to increase brand awareness. The NFL knows this period well. Companies like CMGI and PSINet made club deals before losing much of their early fortunes.

“I see similarities in behavior at the leading edge of the bubble,” said Peter Laatz, global managing director of sponsored appraisal company IEG. “The hasty spending behavior and cash flow coming in with league-wide name rights while retaining some consumer confusion about what the product is is a lot like the dot-com bubble.”

Schneider said the comparison to the dot-com crash was fair.

“If this is what it is … then this is really the beginning, because the dot-com boom was kind of the beginning of the Internet as we know it. All of these companies are at an early stage in their journey. “

The Buy Bitcoins Here sign will be displayed at the 7-Eleven store on November 10, 2021 in Los Angeles, California.

Mario Tama | Getty Images

Warriors are back in bitcoins

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