Portland Trail Blazers kit patch featuring StormX cryptocurrency platform.
Source: Portland Trail Blazers
The National Basketball Association has won its first cryptocurrency jersey sponsorship after the Portland Trail Blazers reached agreements with crypto platform StormX, the team said Thursday.
As part of the pact, the StormX will have a brand presence on the Blazers’ match and training jerseys, in the arena signage, and will use the team’s intellectual property internationally. StormX will also create the team’s first NFT, which will be available this month.
Sports agency Wasserman media group assisted in negotiating the StormX agreement and the terms of the agreement were not disclosed. However, sponsorship experts assume that the multi-year contract will not exceed $ 10 million per year. The Golden State Warriors make around $ 20 million per season on their jersey patch, the most expensive in the NBA.
StormX enables users to earn cryptocurrency when they shop at top brands, such as a cashback or a reward-based business model. The company generates income from transaction fees. The announcement of the deal states that StormX has 800 global partners and more than 2 million users. The company also has a mobile app for Apple and Android devices.
The StormX alignment also offers an exclusive blockchain component that positions the Blazers for the future of ticketing and fan data collection. Blockchains and technology-related items offer a unique and non-hackable certificate of authenticity.
In a statement, Blazers CEO Chris McGowan described the StormX as “revolutionary”. The addition of the deal allows the Blazers fan base more education “about cryptocurrency and how to earn crypto cashback”.
The cryptocurrency space has been active with sports sponsorship this year. Formula 1 agreed on Tuesday $ 100 million deal with Crypto.com and FTX has adopted the arena name for the Miami Heat in March. This 19-year contract is valued at $ 135 million.
It is questionable whether StormX will get their money’s worth with this sports partnership.
The Blazers have a loyal following and a supportive market, but they’re holding up right now Image problems following the hiring of new head coach Chauncey Billups, who was charged with sexual assault in 1997. Billups was never charged and eventually settled with the prosecutor in 2000 negative headlines and social media backlash following the introduction of Billups on Tuesday.
Also franchise star Damian Lillards the future is still unclear after the team failed to progress in the first round of the 2021 NBA playoffs. If traded, the value of the patch of blazers could go down. However, executives within the club believe that current PR issues are short-term and should not affect future team business.
The Blazers are owned by the Paul Allen Estate and are reportedly worth $ 1.9 billion Forbes, which also notes the club brings in around $ 240 million in revenue.