FTX Exchange has bought up naming rights to Cal Memorial Stadium, the official stadium for the University of California, Berkeley (Cal, for short), and its football team, the California Golden Bears.
Naming rights are relatively self-explanatory in that this gives the buyer the right to name an institution. Purchasing naming rights is a financial transaction that is utilized as a way to advertise and/or memorialize a cause.
Details and FTX Ties to UCB
Cryptocurrency exchange, FTX.US, and UC Berkeley entered into a 10-year agreement for $17.5 million. Kicking in this September, the partnership results in FTX Field at the Cal Memorial Stadium. FTX’s Co-Founder and CEO Sam Bankman-Fried’s father is a Berkeley alum as is FTX’s COO, Sina Nader.
According to Nader, $200,000 will be donated to help Berkeley’s homeless. The remainder will be divided among the Cameron Institute for Student-Athlete Development and university organizations for underrepresented student groups and veterans.
This agreement is also very beneficial for UC Berkeley in funding its athletics department. Learfield is UCB’s multimedia rights partner and will accept funds in cryptocurrency. This entity will then pay UCB in cash once a year.
UCB’s athletics director, Jim Knowlton, says, “We believe we have found a great partner in FTX. FTX is a growing company at the forefront of innovation in an emerging technology, one that fits well at both Cal and in the Bay Area. This agreement extends well beyond field naming rights, which is part of our strategic plan to diversify revenue streams in support of our student-athlete experience.”
It's the cryptocurrency naming rights agreement for us 🤩🏟
Alongside @FTX_Official, we are excited to announce our naming rights agreement for FTX Field at California Memorial Stadium!
— Cal Athletics (@CalAthletics) August 23, 2021
FTX Athletic Ventures
FTX Exchange is currently involved in various athletic ventures. NFL Star Tom Brady has become their brand ambassador. For five years, FTX will be Major League Baseball’s official cryptocurrency exchange brand. Moreover, FTX established a similar partnership with Miami Heat in that their home stadium is now known as the FTX Arena.
FTX is quickly expanding and gaining positive brand awareness. Recently, the exchange’s net worth increased significantly to about $18 billion after raising $900 million from investors.
The question we’re pondering is, what will FTX do next?