Crypto.com Purchases Naming Rights to Staples Center in $700M Deal

There are very few stadiums and arenas in the world that are as famous as the Staples Center. There are stadiums and arenas like Madison Square Garden, Lambeau Field, and Wembley Stadium that share the same notoriety as the Staples Center. Will the Los Angeles arena lose popularity after its name changes?

Starting on Dec. 25, the Staples Center’s name will be changed to Crypto.com Arena after the crypto exchange purchased the naming rights in a $700 million deal. Anschutz Entertainment Group (AEG) owns the Staples Center and will give the naming rights to Crypto.com for 20 years.

In June, the Miami Heat’s arena, FTX Arena, changed its name from American Airlines Arena after FTX purchased the naming rights. Still, that doesn’t compare to the Staples Center’s future name change. Many people across the world have grown accustomed to the current name. There are stars that will remain synonymous with the arena’s history including Magic Johnson and Kobe Bryant.

Along with the arena name change, Crypto.com will have access to a 3,300 square foot space at the arena's entrance. The crypto exchange will be able to place advertisements and other properties in the main concourse. In the inner and outer areas, the exchange will be allowed to promote branding and signages around the facility. The deal also allows the crypto company to be an official partner of the Los Angeles Lakers as well as the Los Angeles Kings, which is an NHL team.

Crypto.com and AEG want this deal to help develop the city of Los Angeles. They want to find ways that Crypto.com can implement its services into the area. Crypto.com offers various services including its crypto exchange, wallet with yield and farming options, a crypto rewards program, an NFT platform, and Visa cards that offer rewards.

Both companies want to be active in the Los Angeles community and educate people on the concept of cryptocurrency and Crypto.com’s platform. There's also a goal to make crypto-related activities more carbon neutral. The crypto exchange is expanding its already large market in the sports and entertainment industry. California is one of the top states that’s involved with crypto in many ways, whether it’s launching decentralized applications, mining coins, or joining an exchange.

In a study done by Crypto Head in September, California ranks as the most crypto-ready state in the U.S. The state has the highest amount of crypto-related searches and crypto ATMs in the country. The city of Los Angeles has more Bitcoin ATMs than any other city in the U.S. with over 900. Los Angeles has over 300 more ATMs than Chicago, which has the second most ATMs, and nearly twice as many as Houston, which has the third most ATMs.

AEG is a subsidiary of The Anschutz Corporation, a holding company based in Denver. Anschutz is involved in the energy, hospitality, sports, and entertainment sectors. AEG operates most of the sports and entertainment portion. Along with the Staples Center, AEG owns some of the largest arenas in the world including the Playstation Theater in New York, the Mercedes-Benz Arena in Berlin, and the O2 Arena, which is the second-largest arena in the United Kingdom.

The company also owns the LA Kings franchise. With its ownership, investments, and operations of many entertainment facilities around the world, AEG’s live entertainment division, AEG Presents, is the world’s second-largest presenter of live music and entertainment events.