Wheel in the sky
“Wheel in the sky” a cartoon that illustrates the danger companies can potentially face once they secure naming rights to sports arenas.
While this could be viewed as another example of mixing up causation and correlation, it seems strangely coincidental that FTX (a crypto exchange that went belly-up after reaching a valuation of $32BN) should join such esteemed company as MCI Center in D.C., Enron Field in Houston, and the Wachovia Center in Philadelphia, all of which blew up in some spectacular fashion with many consumers the worse off.
One possible explanation is that tech companies with pots of money just get bored with the fiddly work of optimizing digital marketing dollars and find it much more fun to get access to the VIP box to watch their favorite game or artist.
If this is an indicator of tech companies that have over-reached themselves, perhaps the token holders of Crytpo.com, which paid $700M for naming rights to the Lakers Stadium, should consider some hedging strategies as they cheer on the basketball team.
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