According to the Financial Times, Staples paid $ 120 million in 1999 to secure the arena naming rights
The award-winning Staples Center venue, owned and managed by entertainment company Anschutz Entertainment Group, AEG, is being renamed “Crypto.com Arena,” according to a post on the arena website. Though no details were released, those in the know say the deal is worth $ 700 million and will run for 20 years.
The multi-purpose arena, which hosts professional sports teams such as The Los Angeles Lakers, Clippers, Sparks and Ice Hockey’s Kings, will be unveiled under their new name on Christmas Day with the LA Lakers hosting the Brooklyn Nets. The idea is to completely end the physical Staples branding by June 2022.
Kris Marszalek, CEO of Crypto.com, hailed the partnership as one people would look back on for the next several years and agreed that it marked the entry of cryptocurrencies into the mainstream.
“We are very excited to partner with AEG and make long-term investment in this city, starting with the Crypto.com arena in the heart of downtown and using our platform in new and creative ways so that cryptocurrency can power the future of world-class sport, entertainment and technology for fans in LA and around the world “, he added.
Additionally, Marszalek said the deal would not involve crypto, making it clear that it would be a cash-only deal instead. The board also commented that while the new name would be difficult to get used to, people should expect positive changes over time.
For his part, Todd Goldstein, Chief Revenue Officer of AEG, praised the partnership as one that represents the coming together of a significant entity in the entertainment industry and a rapidly growing crypto platform.
“It marks an exciting new chapter in the history of our company and our respective industries, and we couldn’t be more excited to have a visionary partner like Crypto.com supporting our global fan base and local community.”
This deal marks the second time a crypto exchange has partnered with an NBA franchise company. In March, Bahamas-based cryptocurrency exchange FTX signed a 19-year, $ 135 million deal with Miami Heat to rename their home town the FTX Arena.
Since the 20,000-seat entertainment center opened in 1999, its naming rights have remained with office retailer Staples Inc. Staples initially paid $ 120 million for the deal, despite adding an undisclosed amount halfway through the deal to keep the rights .