Welcome to Cal's FTX Field, a Naming-Rights Deal Funded by Cryptocurrency
Cal announced on Monday that it has reached agreement on the first-ever collegiate cryptocurrency naming-rights sponsorship, a 10-year, $17.5 million deal that will be paid in full in cryptocurrency, with the result being that the Golden Bears’ football field will now be known as FTX Field at California Memorial Stadium.
So, Cal fans, welcome to FTX Field for the Bears’ Sept. 4 opener against Nevada, knowing the name is paid for by virtual currency.
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Update: On Nov. 11, 2022 FTX filed for bankruptcy, causing chaos in the crypto world, according to Yahoo Finance, which provided this note:
Since the filing that included 135 affiliated companies, millions of dollars in crypto have been stolen from the company, which is facing a shortfall between $6 billion and $10 billion. Bahamian officials are also probing the matter.
Cal has made no announcement as to whether this news will affect the name of Memorial Stadium or the naming rights deal. However, the FTX logos on the Memorial Stadium field have been covered up
The rest of the naming-rights story, which appeared on Aug. 23, 2021, continues as follows:
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An interesting note to this story is that the head of FTX (Sina Nader) was a walk-on football player at Cal two decades ago.
The deal will also include on-field branding and branding on athletics press backdrops and social integration and will initiate a community-service platform that will support philanthropic causes.
Cal presented its announcement this way:
Cal Athletics and its multimedia rightsholder, LEARFIELD's Cal Bears Sports Properties, and West Realm Shires Services Inc., owners and operators of FTX.US ("FTX"), a leading U.S.-regulated cryptocurrency exchange, announced Monday the first-ever collegiate cryptocurrency naming rights sponsorship. As part of the $17.5 million deal, LEARFIELD will accept the full payment in cryptocurrency on behalf of the university.
Through this historic, 10-year agreement, FTX receives naming rights to the field at California Memorial Stadium, which will be known as FTX Field at California Memorial Stadium.
"We believe we have found a great partner in FTX," Cal Director of Athletics Jim Knowlton said in a statement accompanying the announcement. "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, 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."
There is one significant asterisk to the claim that the sponsorship will be paid fully in cryptocurrency. In an answer to one of the Frequently Asked Questions, Cal's release stated this:
Will Cal accept cryptocurrency given this new agreement?
While LEARFIELD will accept full payment from FTX in cryptocurrency, Cal Athletics is not yet at that point, but will work with FTX to determine the best path forward. Crypto is being accepted in more locations around the country, and Cal will consider how it can introduce it when the time is right.
FTX.US's Chief Operating Officer Sina Nader earned his bachelor's degree in legal studies from Cal and was also a walk-on member of the Golden Bears football team from 1999 to 2001. Nader reportedly showed up for tryouts with a friend in 1999, when Jeff Tedford was Cal’s head coach, and was kept as a member of the scout team. He was a defensive end, and his last name at the time was Pyghambarzadeh. He changed it to a name that would make things easier in business.
Nader is the former head of crypto at brokerage firm Robinhood.
Cal provided this description of FIX.US
FTX.US is a U.S.-regulated cryptocurrency exchange, built from the ground up with customers in mind. Its mission is to grow the digital currency ecosystem, offer US and international traders a platform that inspires their loyalty, and to become the leading US crypto exchange by volume within the next two years.
Click here for Cal's entire announcement.
Read more about FTX’s plans in this story by The Athletic.
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