Over the past few years, there has been a jolty relationship between the pro football league and the crypto industry. That’s unlike sports l...
Over the past few years, there has been a jolty relationship between the pro football league and the crypto industry. That’s unlike sports like the NBA and Major League Baseball that have stemmed collaboration with Coinbase. In fact, stars like Shohei Ohtani and Stephen Curry are already ambassadors of FTX.
Like other sectors, the volatility of digital currencies plus partnerships has been a considerable concern. However, lately, the new NFL odds are tipped toward reconsideration—with players and managers noticing a need to give the decade-old fiscal innovation a chance.
Around the last half of 2021, the NFL barred teams from trading sponsorships with crypto companies. The rationale behind this was that they were having a close evaluation of the industry. While that was ongoing, there were a lot of inside deliberations and proposals. One of which is the development of an official strategy for crypto and NFTs in the league. Eventually, this led to the postulation of new rules.
Crypto-based Rules for the NFL
Post-suspension of the sales of ads to crypto coins and marketplaces, the following were the updated regulations.
What was permitted:
Clubs can sign deals with adjacent crypto companies. These include partners with direct ties with crypto, like exchanges, wallets, ancillary services, and payment processors.
NFL players are allowed to be sponsored by crypto and blockchain companies.
For the 32 NFL teams, collaboration must be with sponsor companies with the primary aim of providing fund management and investment advisory services. Most especially concerning cryptocurrency. Moreover, it must be established that the ad sponsorship rights are limited to promoting the company’s corporate brands.
All advertising and sponsorship deals must be pre-approved by the league. And that’ll be centered mainly on the credibility of the sponsor.
Things that were prohibited for NFL teams:
Display of blockchain-related advertisements in the stadium.
Involvement in promotions, particularly about specific cryptocurrencies.
Creation and issuance of crypto fan tokens.
Acceptance of cryptocurrency for official transactions.
Partnership with NFT firms or media that are yet to be NFL affiliates.
Signing a deal with a blockchain company for more than three years. In addition, paperwork should contain club exit clauses in the event of adverse regulatory or legal occurrences.
The Impact of Crypto on the NFL
So far in the NFL lines, the adoption of blockchain has affected things in different ways. Despite the usual event of the digital market downtime, things are still in place with the collaboration. The following are the incredible telltales of crypto in the NFL.
Growing Sponsorship Revenues
From the moment the recast NFL rules endorsed partners, it was a matter of time before the figures started surging. Due to this, the Socios fan token project is a success in the league. Things didn’t stop there as new startups also developed an interest in deals with the NFL teams.
While crypto companies jostle their way through with NFL affiliation, more money rolled into the league. This helps to fund a lot in the tournament, like payment of athletes and other staff. Clubs also can keep their infrastructure polished and invest in new technologies with the proceeds.
Increased Interest in Crypto
The NFL is unarguably one of the most popular leagues in America. And for sponsors, there’s no better way to achieve publicity. Crypto has had a hard fight with acceptance and also complications with technology. So, there’s a need for trusted partners to convince the public and draw their interest.
Attraction of Young Folks
It’s been discovered that young people (usually below 25) don’t watch football as much as the older generation. And to think the crypto market needs a target audience that includes a vast percentage of Gen Z.
Hopefully, with continued partnership with the NFL, young adults will develop a burning desire for the game. Also, with the influence of athletes and socialites, they can patronize and learn more about the blockchain industry and also notice when Vegas NFL odd changes and have more opportunities.
