Crypto.com Is Investing $700 Million In The Renaming Of Los Angeles’ Staples Center

A 20-year contract has been reached between Crypto.com and AEG, the owner and operator of the Staples Center in Los Angeles, to rename one of the country’s most prominent sports and entertainment arenas.

The official home of four professional sports organizations — the Lakers, Clippers, and Sparks in basketball, and the Kings in ice hockey — will be renamed Crypto.com Arena. Over 15 GRAMMY Awards shows have been held at the facility. The 2018 GRAMMY Awards, which will take place in January, will also be held at the same location. A person familiar with the arrangement informed The Block that Crypto.com has agreed to pay AEG $700 million for the branding rights. This is one of the most significant sponsorship agreements in sports history.

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A Crypto.com spokeswoman told The Block that the sale is entirely in cash and not in crypto.

Staples Center’s Rebranding

The Staples Center’s rebranding will go into effect on December 25, with physical signs set to change by June of the following year. Since it first opened in 1999, this is the first time the center’s name has been changed. Staples, an American office supplies company at the time, paid $120 million for a 20-year lease on the building.

“This [new] partnership is about the future,” AEG CEO and president Dan Beckerman said in a statement. “AEG and Crypto.com not only share a vision about innovation and the future of sports and entertainment, but we also have a shared commitment to our communities where we work and live.”

Millions of dollars have been spent on sports sponsorship deals by cryptocurrency companies. Football, basketball, baseball, cricket, and Formula 1 clubs have all formed such deals with FTX, Coinbase, Binance, and BitMEX.

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One of these companies’ main goals appears to be to attract mainstream users to the crypto sector. Crypto.com was established in 2016 and is based in Singapore. It has developed to become one of the largest crypto enterprises, with over 2,600 employees and offices all around the world. The company’s main product is an app that lets users buy and sell bitcoins.

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