The NBA is gearing up for its 75th anniversary on Tuesday. But it has also strengthened its position in the coinbase market.
The NBA signed its first bitcoin sponsorship contract with Coinbase, a publicly traded cryptocurrency exchange. The deal includes the WNBA, NBA G League, NBA 2K League, and USA Basketball. The deal’s terms were unknown.
Coinbase is a fee-based software platform that permits cryptocurrency transactions. Coinbase has a $64 billion market valuation on the Nasdaq under the ticker “COIN”. Tuesday afternoon, Coinbase shares rose 3.5%.
Yesterday, NBA commissioner Adam Silver stated the league expects $10 billion in revenue in 2021-22. Moreover, Fans returning to NBA venues, which provide 40% of league revenue, aides that estimate. According to IEG, sponsorships totaled $1.4 billion last season.
With Coinbase, that number should rise.
To boost the crypto economy, the tech business seeks to raise knowledge of blockchain. In addition to Tuesday’s regular-season tip-off games on Turner Sports, the NBA will provide the company visibility. Aside with the WNBA Commissioner’s Cup, Coinbase will also feature the USA Basketball men’s and women’s national teams.
An NBA executive said Coinbase was “a logical fit” for the league’s cryptocurrency. The Portland Trail Blazers’ jersey patch and the Miami Heat’s arena naming rights are two examples.
This year, sports leagues have welcomed bitcoin sponsorships to help them recover from catastrophic losses. NBA teams, F1, MLB, and even the NYC Drone Racing League have crypto sponsorships. Platform Algorand will pay DRL $100 million over five years, and F1 paid Crypto.com $100 million last June.
But the NFL halted crypto agreements. Also, the Athletic, the NFL banned its teams from negotiating sponsorships in August. And now that the NFL’s Super Bowl halftime show rights are up for grabs, the NFL may reconsider
The reigning champion Milwaukee Bucks host the Brooklyn Nets in the first game of the NBA’s 75th anniversary season. The Lakers will play the Warriors in the second game.