According to a report, the NFL has informed teams that they cannot accept or sign sponsorship deals with Cryptocurrency trading firms and other cryptocurrency products. Teams are also banned from selling their own Non-fungible tokens (NFTs). The league is also working on drafting a strategy for sports trading cards and digital collectibles.
While other professional leagues and athletes have welcomed cryptocurrencies and crypto products with open arms, the NFL is being extremely cautious when it comes to adopting the net technology according to The Athletic,
A Stifling Set Of Rules
The NFL has a set of rules that severely limit the use of cryptocurrencies and NFTs. The league has already communicated to teams in the league that they cannot issue or sell non-fungible tokens and cannot accept sponsorships from cryptocurrency trading firms. These rules will stay in force until the NFL can draft an official strategy for the use of crypto and non-fungible tokens in the NFL.
While NFTs and crypto have gained significant appeal and adoption in the sporting world, the NFL has been dragging its feet and continuing its historically lax response towards newer ventures. The NFL was also the last major league to allow gambling and liquor sponsors.
Slow Adoption Of Crypto
As mentioned earlier, other leagues have welcomed crypto and NFTs with open arms. However, the NFL is being cautious as they have always been when it comes to the adoption of new technology. Currently, the league only plans to allow teams to associate with companies that are removed from the trading field and the asset managers that sell the funds to track the digital currency markets when it comes to cryptocurrencies.
A team official who requested anonymity read out a section of the new official guidelines, which stated,
“Clubs are prohibited from selling, or otherwise allowing within club controlled media, advertisements for specific cryptocurrencies, initial coin offerings, other cryptocurrency sales or any other media category as it relates to blockchain, digital asset or as blockchain company, except as outlined in this policy.”
Notable Exceptions To The Rules
The new rules do allow some room to maneuver, allowing sponsorships with “companies whose primary business is providing investment advisory and or fund management services in connection with cryptocurrency, provided that such advertising sponsorship rights are limited to promoting the company’s corporate brands.” states The Athletic.
These limitations come when the NBA, with their Top Shot and Sorare, are creating an unbelievable amount of interest. The restrictions seem to exclude some of the bigger players in the crypto space, with one prime example being FTX. FTX is a digital currency exchange that is endorsed by Tom Brady. Tom Brady has also announced other sporting deals, including a 19-year $135 Million naming rights agreement for the Miami Heats Arena and a 10-year agreement to switch the name of popular esports organization Team SoloMid to TSM FTX.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.