Coinbase Announces NBA Sponsorship – First One Since FTX Collapse

Coinbase is re-entering the sports sponsorship arena, becoming one of the first U.S.-based cryptocurrency exchanges to do so following the FTX fallout.

In October, the platform announced collaborations with several organizations, including the Canadian Football League, the Golden State Warriors of the NBA, and the Nike Melbourne Marathon Festival. This move comes after FTX’s partnership with the Warriors, which had included the launch of a non-fungible token (NFT) collection and Bitcoin donations to local charities before its collapse in November 2022.

According to Mike Kitts, the Warriors’ chief commercial officer, the aim of the Coinbase partnership is to enhance fan engagement through blockchain technology. Coinbase’s involvement extends to existing deals with the Women’s National Basketball Association, NBA, NBA G League, and NBA 2K League.

The Warriors deal indicates a growing acceptance of cryptocurrency sponsorships in sports, filling the gap left by FTX’s demise.

The negative publicity surrounding the 2022 crypto market crash led to many sponsorships being terminated, but other firms, like Crypto.com, are also stepping in. For instance, Crypto.com partnered with the UEFA Champions League in August, while Coinbase and blockchain firm BlockDAG have formed ties with Germany’s Borussia Dortmund.

FTX had previously established high-profile sponsorships with celebrities such as Shaquille O’Neal, Naomi Osaka, and Tom Brady, including a long-term agreement to rename the Miami Heat’s arena to FTX Arena. However, after FTX’s collapse, there have been attempts by its debtors to retract some sponsorship payments, as funds used for these deals were reportedly misappropriated from Alameda Research, a related firm.