Renaming of LA Staples Center to 'Crypto.com Arena' Shows Digital Currencies' Bidding for Awareness

As cryptocurrency continues its rapid ascent into the financial consciousness of investors, the brand Crypto.com is aiming to burnish its rather generic identity into the minds of consumers by taking over the naming rights of the soon-to-be former Staples Center in Los Angeles. On Christmas Day, the 20,000-seat venue that serves as the official home to the NBA’s Los Angeles Lakers and LA Clippers, the NHL’s LA Kings and the WNBA’s Los Angeles Sparks, will be known as Crypto.com Arena. The terms of the estimated $700 million agreement between the stadium owner, sports and entertainment company AEG and exchange platform Crypto.com also makes the Singapore-based tech company an official brand partner of the Los Angeles Lakers and the LA Kings. Crypto.com Reaches Multiyear Partnership Deal With Twitch Rivals Crypto's the currency for stadium rebranding The end of Staples Center's 22-year run as a multipurpose venue mirrors the demise earlier this year of the American Airlines Arena, home of the NBA's Miami Heat. The airline held the naming rights to the venue since 1999. The 21,000-seat arena is now known as FTX Arena, named for another cryptocurrency exchange. The removal of the Staples Center name isn't likely to engender any plaintive feelings or nostalgia. Neither is replacing it as Crypto.com Arena likely to inspire greater interest of cryptocurrency. But at least in the short term, it does help build on Crypto.com's massive effort to be recognized as a major player in that investment realm. Last month, Oscar winner Matt Damon starred in global, multimillion dollar campaign for Crypto.com created by agency Pereira O’Dell. The spot attempted to compare investing in crypto with arctic and space exploration. Selling crypto short There's not much risk-taking in buying the naming rights of one of the highest profile stadiums in the U.S., which will also be home to Men's and Women's Basketball at the 2028 Summer Olympics. But to Metaforce Managing Partner and NYU Stern adjunct professor Allen Adamson, there isn't much upside beyond the immediate attention Crypto.com has just received. "The main benefit of naming a stadium is the ability to build awareness," Adamson told Adweek. "Staples sought the name as a ways of solving the problems of relevance and differentiation. No one was instantly driven to buy office products after attending a Lakers game. But it did keep them top of mind." Crypto.com can certainly be said to have addressed its awareness problem. But the brand's bland name may actually remain a hindrance that a stadium logo, no matter how bold and colorful, can't erase. People are more likely to think of "cryptocurrency" generally rather than consider the company's app or website as a distinct and central go-to for trading digital currencies, Adamson said. When irrational loyalty meets disaster For the most part, consumers have become largely immune to how stadiums are branded, said Sol Marketing founder and CEO Deb Gabor. After all there haven’t been any nationwide petitions calling for more names like Baltimore’s retro ballpark Camden Yards. “In my world of irrational loyalty, we see that sports brands have the power to become part of their fans' identities,” Gabor said. “There's nothing more irrational than continuing to cheer on ‘your’ team during a 10-season losing streak. I just don't see that kind of loyalty for the actual physical space among younger sports fans.” Older sports fans do maintain fond memories of stadiums where they rooted for their favorite teams. And as Adamson and Gabor note, many fans continue to refer to these renamed venues by their former identity. “My sense is that Crypto.com has very low awareness among sports fans right now, Sol Marketing founder and CEO Deb Gabor told Adweek. In choosing the Staples Center as a takeover target, it seems that Crypto.com has identified that its ideal customer lives among the people who attend sporting/entertainment events and consume them via media. Despite the derision the stadium rebrand is getting on Twitter, Crypto.com could ultimately build favor with the kind of consumers it wants to reach. “This is a good way to quickly build top of mind awareness for the brand, but I'm unclear how this will impact the brand's strategy long-term,” Gabor said. However, she did offer a caveat. “There could be some risk to the sports brands associated with the stadium if something goes south with the Crypto.com brand,” she said. A magnet that might repel For example, as Crypto.com's awareness footprint builds, an offensive ad, poor spokesperson alignment, bad business dealings, etc. could bring unforeseen brand damage. “A brand is a magnet that's designed to attract people who align with the values and beliefs of the brand,” Gabor said. In order for this sponsorship to be successful in the long-term, Crypto.com will need to ensure that their brand is always relevant and connected to what their ideal customer audience cares most about, Gabor concluded. "Ultimately, stadium branding is a long term play and what Crypto.com is doing feels more like it's pursuing short-term goals," Adamson said. "The question is 'Will crypto be around in a decade or will it be replaced by another form of digital transactions and investing?' The bottom line for stadium owner AEG is: Did Crypto.com pay in cash?" Matt Damon Becomes Latest Star to Promote a Crypto Brand in Global Campaign