Cal Athletics, the sports teams representing the University of California, Berkeley, and FTX, a leading US-regulated cryptocurrency exchange, on Monday, announced a naming rights sponsorship deal.

As part of the $17.5 million deal and 10-year agreement, Crypto Exchange FTX receives naming rights to the field at California Memorial Stadium, a change of the stadium’s name as FTX Field at California Memorial Stadium and CLEARFIELD will accept the full payment in cryptocurrency on behalf of the university.

Through this deal, both companies will help build a community engagement program for the Cameron Institute for Student-Athlete Development. This new institute has a mission to help student-athletes understand the benefits of public service and success through short-term and long-term commitments. Serving the homeless population, underrepresented students, and the Cal Veterans Group in Berkeley will be its initial focus with financial investment from FTX.

The Director of Cal Athletic, Jim Knowlton, sees FTX as a reliable partner, which is much more than just the name change of its stadium. The collaboration will help support athletes and students in Berkeley.

On top of the $17.5 deal, FTX plans to distribute $200,000 that “will be used to help fight homelessness in Berkeley and support organizations that help underrepresented student groups.”

"We believe we have found a great partner in FTX," the Director of Cal Athletic, Jim Knowlton, said. "FTX is a growing company at the forefront of innovation in emerging technology, one that fits well at both Cal and in the Bay Area. 

This agreement extends well beyond the field naming rights, which is part of our strategic plan to diversify revenue streams to support our student-athlete experience, and includes commitments for our Cameron Institute, Cal Veterans, and students in need here in Berkeley. We are looking forward to building our relationship now and in the years ahead."

FTX has many such sports endeavors, which include a partnership with the Miami Heat, one of the most popular NBA teams. The team’s home court officially changed its name to FTX Arena after the $135 million deal.

In June, the platform inked a collaboration with Major League Baseball (MLB). This long-term, the global partnership is one of its kind between “a professional sports league and a cryptocurrency exchange.”

Besides these developments, the American football star Tom Brady and his wife took an equity stake(undisclosed) on the platform and will serve as its brand ambassadors.

Pavan A

CBW - External Analyst

INDIA