Staples Center Naming Rights Contract: A Detailed Look
The Staples Center, located in Downtown Los Angeles, is a multi-purpose arena that is home to several sports teams and has also hosted numerous concerts and events. The arena’s name is derived from its naming rights sponsor, office supply chain Staples, Inc., which signed a contract in 1998 for the naming rights of the arena.
The initial naming rights deal between Staples, Inc. and the owners of the arena, Anschutz Entertainment Group (AEG), was for a period of 20 years and cost $116 million. This deal was set to expire in 2018, and negotiations for a new deal had already begun by the time the expiration date approached.
In 2017, the Los Angeles Lakers and the Los Angeles Clippers (both of which call the Staples Center their home court) announced that they had extended their lease agreement with AEG, thereby committing to staying at the Staples Center for another 10 years. This announcement led to the speculation that a new naming rights deal would soon be signed.
In June 2019, it was officially announced that the naming rights for the Staples Center had been acquired by California-based financial services company, Crypto.com. The deal, reportedly worth $700 million, was set to last for 20 years and would see the arena being renamed the Crypto.com Arena with immediate effect.
The new contract not only gave Crypto.com the naming rights to the arena, but also the ability to host various events and offer exclusive experiences to its customers. The company also announced that it would be launching a new NFT (non-fungible token) platform, with the first offering being the NFT version of the Lakers’ 2020 NBA championship ring.
The Staples Center naming rights contract is just one example of how naming rights can be a lucrative source of revenue for sports arenas and facilities. These deals not only provide a massive amount of exposure to the company, but also offer access to millions of potential customers. With the growing popularity of cryptocurrencies, it remains to be seen whether more naming rights deals will be signed by companies in the crypto space.
In conclusion, the Staples Center naming rights contract is a testament to the value of naming rights deals and their potential to generate significant revenue and exposure for companies. The 20-year deal between Crypto.com and AEG not only gives the arena a new name, but also opens up a world of possibilities for the financial services company. It will be interesting to see how the partnership evolves in the coming years and whether more companies will follow suit in acquiring naming rights for other sports arenas and facilities.