Hot on the heels of basketball legend Scottie Pippen’s announcement that he was tokenizing the Chicago Bulls’ 1991 Game 5 ball, it seems there is really no stopping the NBA crypto wave. Announced just this July, the former small forward has previously released a sold-out NFT and spoken about his interest in tokens like Solana and Ethereum. This interest seems to reflect a broader trend in the NBA as a whole, where cryptocurrencies have taken root in various aspects. With a global market cap of over $2 trillion, cryptos are some of the most exciting digital diversifiers today. From player salaries to fan engagement, here are a few ways that these digital tokens are shaking up the pro basketball industry.
How Cryptocurrencies Have Shaken Up The NBA
Sports betting
As of 2024, Yahoo! Finance estimates that the basketball sports betting market is valued at around $50 billion and is poised for further growth thanks to the NBA. One reason for this is the rise of crypto within NBA betting. As seen on Thunderpick, bettors can use a variety of tokens, including Bitcoin, Tether, and XRP. Since these are decentralized, transactions are faster, fees are lower, and data privacy is better. Apart from this, trusted crypto betting platforms offer more dynamic betting lines and odds in both live and pre-match games. Using “Live Mode” even allows bettors to place their wagers on in-play games for a more immersive experience. Bettors using crypto can also create more advantageous strategies, like using an accumulator for a higher payout. Since crypto deals are also cleared faster, it’s easier for bettors to react to data in real time. This is especially important in the NBA, given how its scope and popularity keep sports bets fast-paced and high stakes.
Season sponsorships
The amount and caliber of sponsors can make or break an NBA season. With the right sponsorships, the NBA can rake in more revenue, often exceeding hundreds of millions. Among all the sponsors that these elite teams attract, crypto companies are proving to be some of the most lucrative. According to NBC, NBA sponsors that have to do with crypto now make up the second-most lucrative sponsorship category, just behind tech. In the 2021 to 2022 season, crypto even helped overall sponsorships hit over $1.6 billion. To illustrate just how important crypto sponsors are, consider that the four-year Coinbase agreement alone that was inked in the same season was worth $192 million. Aside from this, crypto-related stakeholders have paid big money to get their names on jerseys and stadiums. For instance, FTX signed agreements worth millions of dollars to secure arena naming rights for the Miami Heat. Meanwhile, Webull secured a $30 million jersey patch deal with the Brooklyn Nets in 2021. While all of this primarily helps boost crypto’s mainstream visibility, it’s also padding the NBA’s bottom line.
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Merch and ticket payments
As further proof that the NBA has embraced cryptocurrencies, many teams now accept tokens as official forms of payment. The undisputed leader in this adoption is the Dallas Mavericks. Formerly led by billionaire Mark Cuban, the Mavs are been known to take big swings even if they may be controversial to some. Case in point, despite having previously been burned by pro baller DeAndre Jordan in 2015, the Mavs once again tried to lock him up in 2018. At the time, it was reported that the Mavericks had settled another verbal agreement with Jordan. This time, the one-year $24 million deal did push through. Unsurprisingly, this risk-taking streak carries on into crypto. In 2019, the team announced that they would accept cryptocurrencies for ticket payments. At the same time, the Mavs shared that even meme coins like Dogecoin would be valid payments for official team merchandise.
Player salaries
With their generous paydays, NBA players can afford to enter the crypto game, and that’s exactly what a number of ballers are doing. Interestingly, unlike Pippen, who is doing so in retirement in the form of his own tokens, some active players are entering the crypto sphere by opting to receive some of their salary in cryptocurrencies. To illustrate, two Golden State Warriors have chosen crypto paydays. Klay Thompson and Andre Iguodala were previously noted to have signed for Bitcoin salaries, although it’s unsure of the crypto makes up all or just a part of their total payment. In 2021, PR Newswire shared that Iguodala had also entered a partnership with Voyager and has even been able to purchase real estate using his crypto assets. Aside from the Warriors, Cade Cunningham of the Detroit Pistons and Spencer Dinwiddie of the Brooklyn Nets were also said to have agreed to crypto payments. Although crypto does remain volatile, the players’ interest underscores their potential and relevance.
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