The NBA’s Utah Jazz and the cryptocurrency platform CoinZoom announced a new partnership this week. Exact transaction terms including dollars paid was not disclosed.
The Jazz see it as an opportunity to further engage with its fans in several innovative, new ways. Examples include:
- Purchasing the latest Jazz NFT drops using the CoinZoom app. Acceptable forms of payment will include direct deposits, wires, ACH, credit cards, and of course more than forty other cryptocurrencies.
- Scanning a QR code at their seats. Utah-based security system provider Vivint acquired the naming rights for 10 years in the fall of 2015.
CoinZoom immediately becomes a leading brand associated with the Jazz. CoinZoom will be visible on the Jazz app, in crypto giveaways, across various social media and merchandising channels, in radio ads, and physical signage itself throughout the arena.
Effectively, fans can search the latest offerings, bid, and buy all in one place.
The news is the Jazz’s second foray into NFTs. Last fall the team introduced its “JAZZXR” program that merged access to unique live experiences with Ryan Smith, the Jazz’s owner, in a virtual locker room and the team’s initial custom NFTs available for purchase.
Other NBA teams have delved into the world of NFTs in recent years. The most prominent was a rebrand of what was formerly known as the Staples Center in Los Angeles. In December of 2021 it became known as the Crypto.com arena at a reported cost of $700 million over 20 years!
Once thought as too abstract because it is not something an individual can touch and feel, the notion of possessing something truly one-of-a-kind such as an NFT is beginning to prove its value. This is where the NBA and the Jazz are looking to capitalize on its potential.
An NFT can represent anything digital such as land in a virtual world, a video, an image, and more.
For context, the NFT industry has grown rapidly in popularity. In 2021, NFT sales volume totaled $24.9 billion (that’s correct, billion) compared to only $94.9 million the year prior. Some items were known to be appreciating so far that they were flipped quickly in the same way an investor might treat a hot stock.
The art world was the most prominent sector to pounce first, with one item at Christie’s auction going for a reported $69.3 million.
Major brands such as Gucci have also made big splashes.
The NFT moves garnering much of the public’s attention though is in the Metaverse. Major real estate developers are acquiring virtual lands costing in the millions. If you are near Snoop Dogg’s compound or another major celebrity, even better.
With the multitude of ways sports teams can choose to engage with its fan base, the Jazz and CoinZoom view its new partnership as an exciting changing of the guard. Expect more dominos to fall in the future.