Soccer with the NFL logo
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In a memo issued Tuesday, the National Football League has given the team permission to seek blockchain sponsorship as technology becomes more popular among fans and athletes in the organization.
The league said it had decided to allow “promotional relationships without undue regulatory or brand risk” after completing the evaluation of the technology. Permits that require NFL approval do not include stadium signs. So far, there are limits to the specific cryptocurrencies and fan tokens that can be redeemed for goods and experience.
“Clubs are still prohibited from promoting cryptocurrencies directly,” the memo says.
The NFL decision will also be made after recent lobbying related to the blockchain. CNBC reported in February that the NFL lobbyed the Securities and Exchange Commission on “issues related to blockchain technology” from July to December 2021. The NFL has also lobbied the White House Office and the Department of Justice and Commerce.
“In this evolving regulatory environment, it is still essential to carefully assess the potential commercial opportunities associated with blockchain technology and pay due attention to all potential partners and their business models,” he said. Is written in.
This memo arrives a few days before the NFL’s annual meeting, which begins Saturday in Florida. The league will update team owners for business initiatives that include revised blockchain guidelines. Due to the pandemic, the league will meet in person for the first time since 2019.
CNBC has obtained a copy of a memo issued by NFL Chief Revenue Officer Lenny Anderson and Chief Media Business Officer Brian Lorap. This update will take place after the NFL and the Players Union have signed a contract with blockchain company Dapper Labs to produce video goods. Panini holds the rights to the league’s NFT trading cards. In addition, the NFL has approved media partners to allow blockchain advertising in-game for the first time in the 2021 season.
Joe Ruggiero, head of consumer products for the NFL, told CNBC that transactions with blockchain companies will not exceed three years. Ruggiero added that the NFL may also bring official blockchain rights to market.
It’s unclear how much the NFL wants. CNBC previously reported that the National Basketball Association has signed a deal with Coinbase worth $ 192 million over four years. Similarly, the $ 10 million deal with the NBA’s Golden State Warriors on the crypto platform FTX is a potential deal blue between blockchain-linked companies and the NFL team under newly issued guidance. It may be a photo.
“We are very bullish on blockchain technology,” Ruggiero said. “I think there are many possibilities over the next decade to actually shape innovation and shape fan engagement.”
Blockchain technology acts as a similar digital ledger and is used for cryptocurrencies such as Bitcoin. It also effectively provides a unique and non-hackable authenticity certificate for virtual collections such as non-fungible tokens (NFTs). Tuesday’s memo also gave the team limited permission for NFTs.
The monitor will display the Coinbase sign during the company’s initial public offering (IPO) on Wednesday, April 14, 2021 at the Nasdaq Market Site in New York.
Michael Neagle | Bloomberg | Getty Images
“With the approval of the league, clubs can now accept advertisements for NFTs and NFT companies (without using the club’s mark or logo unless related to a league NFT contract),” he said in a note. Is written. Nevertheless, the league will continue to prohibit teams from engaging in product licensing agreements or sponsorships for NFTs or NFT companies (unless permitted in connection with league-level NFT partnerships).
NFL stars such as Tom Brady and Rob Gronkowski are taking advantage of NFT trading from the blockchain market. According to Bloomberg, Bloomberg’s NFT platform, Autograph, raised $ 170 million in January.
Fanatics, an e-commerce giant co-owned by the NFL, has invested in the NFT company Candy Digital. The company was founded in 2021 and has locked up the rights to NFTs in Major League Baseball. In October, CNBC reported that Candy Digital would be worth $ 1.5 billion, funded by investors, including NFL legend Peyton Manning.
Ruggiero said the NFL will continue to evaluate the remaining restrictions on blockchain-related technologies.
“Everything is changing rapidly. We all need to look to the next area of innovation,” he said. “So we spend a lot of time seeing where the future goes.”