The NBA playoffs are a time of excitement and anticipation for basketball fans everywhere. For the Los Angeles Lakers and Sacramento Kings, their playoff runs have proved to be extremely lucrative for their home court, the newly renamed Crypto.com Arena.
Located in downtown Los Angeles, Crypto.com Arena has played host to some of the most exciting moments in NBA history. From Kobe Bryant’s 81-point game to the Lakers’ back-to-back championships in 2009 and 2010, the arena has seen some of the most dominant teams in NBA history.
However, it is the success of the Lakers and Kings in the playoffs that has proven to be especially lucrative for the arena. This is because playoff games bring in larger crowds and generate more revenue than regular season games, and this is especially true when two local teams are competing against each other.
The Lakers have long been one of the most successful and popular teams in the NBA, and their playoff runs have been a major draw for fans. This year, the Lakers were matched up against the Phoenix Suns in the first round of the playoffs. Despite being without superstar player LeBron James for much of the series due to injury, the Lakers were able to sell out all three of their home games at Crypto.com Arena.
The Kings, although not quite as successful as the Lakers historically, have still managed to make a deep playoff run this year. They were matched up against the Memphis Grizzlies in the first round, and managed to win the series in five games. This success has generated a lot of interest and excitement among Kings fans, and has also helped to boost attendance and revenue at Crypto.com Arena.
Of course, this is not the first time that Crypto.com Arena has enjoyed a boost in revenue from playoff games. In the 2002 NBA playoffs, the Lakers faced off against the Kings in what would become one of the most memorable playoff series in NBA history. The series was hotly contested, with the Kings winning the first two games at home before the Lakers stormed back to win the next three games.
Game six of the series, which was played at Crypto.com Arena, was the subject of controversy due to some questionable officiating that went in favor of the Lakers. Despite this, the Lakers were able to hold on for a 106-102 win, which propelled them to another NBA championship.
The success of the Lakers and Kings in the playoffs has not only been good for Crypto.com Arena, but for the city of Los Angeles as a whole. When local teams are successful in the playoffs, it generates excitement and pride among fans, which can translate into increased spending at local businesses and attractions.
This year, with both the Lakers and Kings making deep playoff runs, the city of Los Angeles has a lot to be excited about. Fans are flocking to Crypto.com Arena to cheer on their teams, and local businesses are benefiting from the increased foot traffic and spending.
Overall, the success of the Lakers and Kings in the playoffs has been a major boon for Crypto.com Arena. The increased revenue generated from playoff games helps to offset the cost of running the arena, and also provides a boost to the local economy. As long as these teams continue to be successful in the playoffs, Crypto.com Arena can look forward to many more lucrative playoff runs in the years to come.
The NBA and NHL playoffs have been a lucrative opportunity for AEG, the owner of Los Angeles’ Crypto.com Arena, which has hosted postseason runs from all three tenants, the Lakers and Clippers of the NBA and the Kings of the NHL.
The premium seating sales team at Crypto.com Arena secured $5 million in contractually obligated income over six playoff games and five nights, drawing a total of 120,000 attendees during this multi-sport playoff run. Additionally, the Southern California music festivals Coachella and Stagecoach are operated by AEG, bringing in more business for the company.
The company was able to secure new sponsorship sales in addition to leveraging the influx of activity across industries. Over 150 brands were able to partner with AEG, with Coachella activations with companies like Adidas, YouTube, and Heineken. The L.A. Galaxy, also owned by AEG, reached 96% of its 2023 revenue goal, despite a lackluster on-field performance this season.
AEG’s COO, Nick Baker, said that three years after COVID-19 shut down sports, the live events industry has surpassed pre-pandemic levels. The company has done deals that exceed $160 million in contractually obligated income in a 48-hour span.
Since Crypto.com paid $700 million for naming rights to the arena formerly known as Staples Center, the market has seen a painful “crypto winter.” Amid skepticism from some corners about the sustainability of its business, Crypto.com is committed to its long-term plans for the arena. A nine-figure renovation project was announced last August and the company is “95% finished” adding permanent signage to the building.
The Lakers host the Memphis Grizzlies for Game 6 of their first-round playoff series at Crypto.com Arena on Friday, while the Kings will do the same against the Edmonton Oilers the following night. With the live events industry surpassing pre-pandemic levels, AEG and Crypto.com are poised to continue to benefit from their investment in the arena.
