The NBA is giving the NFL a run for its advertising money. 

IEG estimates that the NBA made a record $1.46 billion in sponsorship revenue this season, up 6% year-over-year. That’s just under the $1.62 billion the NFL made during its pandemic season.

Despite a shortened 72-game season, the NBA picked up 13 new sponsors, including Microsoft, which brought in roughly $115 million in new spending, according to IEG.

Retail, alcohol, and insurance deals took the spotlight, with around 70 in each category.

• In 2018, ESP Properties found that insurance companies are five times more likely to sponsor the NBA.
• IEG predicts that jersey patch deals have increased sponsorship by 70% since the 2016-17 season — the last season prior to their introduction.

“Some teams are getting more than $15 million per year for jersey patches, and that is close to the $30 million a naming rights sponsorship can bring in annually,” said IEG Global Managing Director Peter Laatz.

Only three of the 30 NBA teams don’t have patch deals.

The league makes big money from media rights, too. Tencent has a five-year, $1.5 billion deal to air games in China, while Disney and WarnerMedia have a $24 billion deal for broadcasting rights.

The NBA is looking for a nine-year, $75 billion deal after current rights expire in 2025.

Peloton used to have a “come for the workout, stay for the music” vibe. Now it might be the other way around.

The at-home fitness giant announced a virtual music festival, albeit one without live performances, featuring music from a star-studded list of artists including Nas, Pearl Jam, Migos, and Depeche Mode.

Echelon, a Goldman Sachs-backed Peloton competitor, announced a partnership with Pitbull on Tuesday. Goldman led a $65 million financing round for the company in December.

Music has become a key component for major at-home fitness brands.

• Peloton inked a two-year partnership with Beyoncé in November and a deal with music competition platform Verzuz in March.
• Earlier in June, at-home boxing startup Liteboxer signed a licensing deal with Universal Music Group.

According to Pipsilay Research, 58% of Americans say that celebrity endorsements influence their purchase decisions, and 62% equate celebrity endorsements to brand quality and integrity.

Peloton could use the branding boost after a rocky year in which it was sued for patent infringement and issued a voluntary recall of its treadmills after the machines were tied to one death and multiple injuries.

Its stock price is down 14% since the start of the year, hitting an eight-month low in May.

Peloton still anticipates $4 billion in fiscal 2021 revenue. The company reported a net loss of $8.6 million in the quarter ending March 31, but sales grew by 141% year-over-year.

Sony acquired Finnish video game developer Housemarque, the studio behind PlayStation 5 hit “Returnal.” Terms were not disclosed.

Housemarque will now make all of its games exclusively for PlayStation consoles. 

The move keeps Sony’s battle going with its rival Microsoft, which is also prioritizing video game acquisitions.

• Microsoft bought game studios Undead Labs, Playground Games, Ninja Theory, and Compulsion Games in 2018 to create more Xbox exclusives.
• “Psychonauts” developer Double Fine was acquired in 2019. 
• Microsoft added Bethesda, the publisher behind “Doom” and “Fallout,” to its roster in March following the $7.5 billion acquisition of parent company ZeniMax.

Microsoft reported revenue of $41.7 billion in fiscal Q3 2021 — its best quarter in four years — and the company closed above the extremely rare $2 trillion market cap for the first time last week.

Sony, while not as flush with cash, is just as serious about snapping up studios, purchasing “Spider-Man” developer Insomniac Games for $229 million in early 2020.

Sony also contributed $200 million to Epic Games’ $1 billion funding round in April, giving the “Fortnite” maker a $28.7 billion valuation — eight months after its previous $250 million investment in the company.

Formula 1 just booked five figures in sponsorship revenue because of crypto. 

Crypto.com announced a five-year, $100 million partnership with the iconic racing series on Tuesday. The deal will bring visibility to the crypto company at F1 events. 

Crypto.com is a trading platform that also offers a Visa card. It recently launched an NFT platform, as well. Aston Martin’s F1 team already offers NFTs through Crypto.com, and F1 plans to do the same.

Several cryptocurrency platforms are using sports to grow brand awareness.

• On Tuesday, FTX announced a partnership with Tom Brady and Gisele Bündchen. FTX also agreed to a sponsorship deal with MLB last week and earned the naming rights for the Miami Heat’s arena in June.
• In September, eToro announced a dozen European soccer sponsorships, including deals with the Premier League’s Crystal Palace, Everton, and Leicester City, as well as multiple Bundesliga clubs.
• Other Crypto.com partners include Serie A and the NHL’s Montreal Canadiens.

F1, which was bought by Liberty Media in 2016 for $4.4 billion, saw its revenue bounce back to $180 million in Q1 2021, up from $39 million in the same period last year.

Viewership is up 53% this year compared to 2020, and 38% from 2019.