The NFL made some significant and groundbreaking announcements on Monday. Along with revealing that Detroit would host the 2024 draft, the NFL also announced that teams would be able to seek out blockchain partnerships with platforms such as Coinbase and FTX.
The introduction of blockchain sponsorships is expected to increase the sponsorship revenue over the next season significantly.
Some Huge Announcements
With Detroit revealed as the host of the 2024 draft, the NFL moved on to other significant announcements during its annual meetings, generating a considerable amount of buzz, with the league announcing that teams are now permitted to partner with blockchain platforms. The NFT had generated a staggering sponsorship revenue of nearly $2 billion for the 2021 season, and with blockchain deals now on the table, there could be a significant increase in the amount of sponsorship revenue for the following season.
Last week, the league had announced that it was loosening its rules and giving teams some leeway, allowing them to deal and strike sponsorships with companies working with blockchain technologies.
The Door Is Ajar, Not Completely Open
While allowing teams to tie up with companies working with blockchain technology is a big step, the teams are still banned from cryptocurrency sponsorships. Speaking about the decisions, Rennie Anderson, NFL Chief Revenue Officer, stated,
“This is a little bit of what we can learn from the marketplace versus us going out and acting like we know everything. We have the ability to let the marketplace tell us what they think about themselves in the category.”
Blockchain Hits The NFL
The league also announced its intention to allow NFL clubs to explore sponsorship opportunities from platforms such as FTX, Coinbase, and others, rolling out its newest asset to potential partners. Anderson believes that the assets could help draw partners to hold rights, including the NFL’s official digital wallet and official blockchain partners. However, Anderson also added that the NFL is still learning about blockchain technology and what it offers. Anderson stated,
“I think we’ll learn a lot about the use cases about how they can transform our future.”
Blockchain technology has significant applications apart from cryptocurrencies, giving collectibles such as non fungible tokens (NFTs) certificates of authenticity and ownership.
Not On Board With Crypto Yet
However, Anderson also stated that the NFL is still not on board with the idea of cryptocurrencies and that it would “protect the business” and ease itself into the crypto sector. This could potentially mean that the NFL is taking a wait and watch approach as government officials debate regulations regarding cryptocurrencies and the crypto space. This approach is in stark contrast to that taken by the NBA, which has gone all-in on crypto. Regarding the NFL’s stance, Anderson stated,
“We don’t have to be the first,” said Anderson. “But when we do something, we’ve got to get it right.”
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.
Source: Crypto Daily