NFL will let teams seek blockchain sponsorships
The NFL logo on a football
Getty Images| Getty Images
A Tuesday memo from the National Football League gave teams permission to request blockchain sponsorships. It is partially reversal of previous policy. late last summerAs technology becomes more popular among athletes and fans, so does the popularity of this technology.
After evaluating the technology, the league stated that it decided to permit “promotional relations without taking excessive regulator or brand risks”. Stadium signage is not permitted by the NFL. Restrictions remain for certain cryptocurrency. fan tokensYou can exchange your points for experiences and merchandise.
The memo states that “Clubs will remain prohibited from directly encouraging cryptocurrency.”
After its latest lobbying efforts related to Blockchain, the NFL has taken the decision. CNBC reported February 2nd that NFL lobbied the Securities and Exchange CommissionOn “issues relating to blockchain technology” between July and December 2021. Additionally, the NFL lobbied for the White House Office and Departments of Justice and Commerce.
It is important that in this ever-changing regulatory environment we evaluate potential commercial opportunities using blockchain technology and do due diligence on potential partners as well as their business models.
This memo is coming days before the NFL’s annual meeting, which begins Saturday in Florida. It will provide updates to team owners about business initiatives and the new blockchain guidelines. The league’s first meeting in person since 2019, due to the pandemic.
CNBC was able to obtain a copy the memo from Renie Anderson (NFL chief revenue officer) and Brian Rolapp (chief media business officer). After the NFL and players union reached an agreement, the update was made. with blockchain company Dapper LabsProduce video collectibles. Panini holds the rights to NFT trading cards for the league. Additionally, Panini was approved by the NFL’s media partners to permit blockchain ads during NFL games during 2021.
CNBC’s Joe Ruggiero said that the NFL’s consumer product head Joe Ruggiero told CNBC that the time the NFL deals with Blockchain companies won’t exceed three years. “So it allows us flexibility for long-term.” Ruggiero said that the NFL might also put its official blockchain rights onto the market.
The NFL is not yet clear how much they would like. CNBC had reported earlier that the National Basketball Association reached an agreement with Coinbase worth $192 million over four years. FTX also announced a $10 million deal for cryptocurrency platforms. with the NBA’s Golden State WarriorsThe guidance may provide an example of possible agreements between companies that are blockchain-linked and NFL players.
Ruggiero declared, “We are very bullish on Blockchain technology.” We believe it can really influence innovation and fan engagement in the next decade.”
The blockchain tech is used to create digital ledgers that are similar to bitcoin. It also effectively gives virtual collectibles like nonfungible tokens, or NFTs, unique and non-hackable certificates of authenticity. The memo granted limited access to NFTs for teams on Tuesday.
Monitors displayed Coinbase signage at the Nasdaq MarketSite, New York on Wednesday April 14th 2021.
Getty Images| Bloomberg | Getty Images
The memo states that clubs can now accept advertising without club logos or marks, subject to League approval. It adds that the league will not allow teams to “engage in product licensing or sponsorships for NFTs and NFT companies (other then as allowed in connection with League level NFT partnerships).”
NFL players such as Tom Brady Rob Gronkowski have capitalizedThe blockchain marketplace for NFT transactions. According to Bloomberg, Brady’s NFT platform Autograph raised $170 Million in January. Bloomberg.
E-commerce giant Fanatics – which the NFL co-owns –invested in NFT company Candy Digital. This firm, which was established in 2021, secured Major League Baseball NFT rights. This was October. CNBC reported Candy Digital is valued at $1.5 billionAfter a significant raise by investors including Peyton Manning, the NFL legend.
Ruggiero stated that the NFL will continue to review its restrictions regarding blockchain-related technology.
“Everything is changing so quickly – we all have to be looking at the next areas of innovation,” he said. So, we spend lots of time looking to the future.