Staples No More
Staples Center is one of the most heralded stadiums in the United States, just behind Madison Square Garden. It’s the home stadium for most Los Angeles sports teams, including the Los Angeles Lakers, the biggest franchise in NBA history, boasting players like the late Kobe Bryant and LeBron James. The stadium is also used to host entertainment events, including the Grammys, making this stadium a known name among most American households.
However, it looks like everyone is changing their names now. Facebook went to Meta, and Staples Center will now go to Crypto.com Arena. Before we move on, I just want to say that it doesn’t hit the same at all; Staples Center is very catchy, where Crypto.com Arena takes too long to say. Anyways, AEG, the owner of Staples Center, reached a deal with Crypto.com valued at 700 million dollars, which is crazy for a naming deal. Crypto.com is a relatively new company, and they offer crypto trading, crypto credit cards, and NFTs. It marks yet another crypto company entering the NBA, with FTX making a deal with the Miami Heat regarding naming rights. This is risky due to the volatility of the cryptocurrency industry, and we’ve seen tech stadiums go wrong. During the tech bubble, Enron received naming rights from the Houston Astros, but it was sold back to them in 2002 when they went bankrupt. A similar thing happened with the Baltimore Ravens, but it’s important to note that these are mid-level franchises in terms of market share and media. Anyways, it looks like the NBA is ready to embrace the future, starting with its biggest franchises. What do you think about Crypto.com Arena?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.