The NBA’s top sponsors in the 2021-22 season came from industries familiar to longtime sports fans, with one exception: crypto.

Cryptocurrency companies rocketed to the NBA’s second-largest category with $100 million to $150 million in sponsorships — after placing 43rd the previous season — according to an analysis by consulting firm IEG. 

Only technology companies, which spent more than $170 million on NBA sponsorships, topped the crypto industry.

• The NBA hit a record $1.6 billion in sponsorship revenue in 2021-22, up 13% year-over-year. 
• The surge in crypto deals has come almost entirely from five companies: Crypto.com, Webull, Coinbase, FTX, and Socios cover 92% of the industry’s NBA spending.

Arena deals made the biggest splash, with FTX securing rights to the Miami Heat’s arena last year in a 19-year, $135 million deal, and Crypto.com replacing the Staples Center by inking rights to the home of the Los Angeles Lakers, Clippers, and Kings in a 20-year, $700 million agreement in November.

The NBA ranked third in total sponsorship dollars among U.S. sports leagues in 2021, trailing the NFL ($1.8B) and MLB ($1.7B). 

Familiar Faces

Other than crypto companies, there was little movement among the NBA’s other top sponsor categories. Banks, telecom companies, and sports apparel and footwear placed third through fifth, with $100 million to $150 million in sponsorships apiece.

Beer, insurance, automotive, retail, and lottery, betting, and gaming companies rounded out the top 10, with each spending $70 million to $100 million.

Ticketing platform SeatGeek and blank-check company RedBall Acquisition Corp. have mutually agreed to terminate a merger that would have valued the combined entity at $1.35 billion. 

The two parties agreed to terminate the merger due to unfavorable market conditions. RedBall and SeatGeek cited particular concern regarding growth in tech companies. The two companies first agreed to take SeatGeek public via a merger in October 2021.

RedBall and SeatGeek’s merger would have combined two companies rooted in sports. 

• SeatGeek provides ticketing services to teams including the Dallas Cowboys, Brooklyn Nets, and Liverpool FC.
• RedBall is co-founded by Oakland A’s executive and minority owner Billy Beane and RedBird Capital founder Gerry Cardinale.

The dissolved merger is also a missed opportunity for investors. The union included a $100 million investment from Kevin Durant’s Thirty Five Ventures, Utah Jazz owner Ryan Smith, and others. SeatGeek also has previous investors including Eli and Peyton Manning, Carmelo Anthony’s Melo7 Tech Partners, Nas, and private equity firms Elysian Park Ventures and TCV. 

Strong Results 

SeatGeek generated a record $82.5 million in revenue in Q4 2021, up from $4.8 million for the same period the year prior. Full-year revenue for the company reached $186.3 million in 2021.

The strong results follow an underwhelming FY2020. SeatGeek saw its revenue drop from $142 million in 2019 to $33 million in 2020, largely due to the pandemic and fan limitations at in-person events.

Just when BT Group seemed to have found a new corporate home for BT Sport and its coveted Premier League rights, a planned venture with Warner Bros. Discovery faces new challenges.

The U.K.’s regulatory Competition and Markets Authority said it was opening an investigation with BT’s deal with Warner Bros. Discovery to determine if the deal creates an anti-competitive media environment.

• The $773 million deal would link BT Sport with U.K. Eurosport.
• BT Group would earn $113.6 million over three years, plus up to $660 million based on the combined entity’s performance.
• Warner Bros. Discovery would then have the opportunity to buy out BT and take full control of the sports media company.

The first phase of the regulator’s probe will be completed by July 28.

The British telecommunications giant has been seeking to offload BT Sport, first nearing a deal with DAZN before pivoting to a split project with Discovery.

Mega Merger

The deal, which the two sides said should close by the end of the year, would create a powerful sports media force in the U.K. and Ireland.

In addition to the Premier League, the new entity’s broadcast rights would include the UEFA Champions League, the Olympics, Grand Slam tennis tournaments, UFC, and the Tour de France.

Eurosport and BT Sport would initially remain separate brands before uniting under one name at some point in the future.