In its relentless search for new sources of revenue, the Cal athletic department has gone to a place where cash is neither cold nor hard.

The Bears announced on Monday a sponsorship agreement with FTX, a cryptocurrency exchange regulated in the United States that will receive naming rights to the field at Memorial Stadium.

The deal marks to first sponsorship agreement between a college athletic department and a cryptocurrency exchange, according to the university.

The name FTX Field at California Memorial Stadium will be worth $17.5 million over 10 years to the Bears.

The agreement was brokered by Learfield, Cal’s multimedia rights partner. FTX will use cryptocurrency to pay Learfield, which will then make annual payments to Cal in cash.

Cal has no plans to accept crypto payments at this point but, according to the university, “will consider how it can introduce it when the time is right”.

“We believe we have found a great partner in FTX,” Cal athletic director Jim Knowlton said. “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.”

FTX had a connection to Cal through its chief operating officer, Sina Nader, who played defensive end for the Bears 20 years ago.

As part of the deal, FTX will provide support to Cal’s Cameron Institute for Student-Athlete Development. It also will donate $200,000 to fight homelessness in Berkeley and support “organizations that help underrepresented student groups at UC Berkeley,” Nader explained.

The Bears reported a $3.2 million surplus in the 2020 fiscal year, thanks to $25 million in support from central campus. The budget includes an $8.5 million annual payment on the Memorial Stadium renovation.

Cal isn’t the only athletic department in the Pac-12 to follow unconventional paths to new revenue streams.

Last summer, Colorado announced a multi-year sponsorship with PointsBet, a global gaming operator. The deal is reportedly worth $1.6 million to CU over five years.

FTX, which was founded in 2019, has been making a push into the sports world.

It recently won the naming rights to the Miami Heat’s arena and has a deal with Tom Brady, who reportedly owns an undisclosed stake in the company.

It’s the second naming rights sponsorship for the field at Memorial Stadium, which was named Kabam Field from 2014-16.

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