NFL prohibits NFTs and cryptocurrency team sponsorships
The National Football League (NFL) announced that the league’s teams are prohibited from using NFTs or cryptocurrency sponsorship “at this time.”
- The NFL has prohibited teams from taking cryptocurrency sponsors, according to a recent news story.
- The regulations also ban teams from selling NFTs for the moment.
- The NFL is the only major sporting league in the United States to have taken these measures
Professional sports and athletes in the United States have rapidly embraced cryptocurrency, but the NFL has been slower. We’ve got additional details on the subject, according to a recent story from the Athletic.
To everyone’s surprise, the NFL has a set of rules that severely restricts what teams may do with cryptocurrency. The NFL has banned teams from selling non-fungible tokens (NFTs) and accepting any cryptocurrency sponsorships from trading companies. The NFL’s official policy on crypto and NFTs is yet to be established, thus the existing rules remain in place.
Despite the huge NFT craze in sports, the NFL has maintained a historically stagnant pace when it comes to new initiatives. The NFL was the last major sports league in the United States to allow gambling and alcohol advertising.
Moving forward and hopefully adapting
Teams will now be able to collaborate with companies that are close to or involved in crypto. However, working with those who are directly linked to cryptocurrencies, such as exchanges, is prohibited by the new standards.
According to an unidentified team official, “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.”
Many large businesses in the cryptocurrency industry are not covered by these standards. As a result, it will only be a matter of time before NFL teams and crypto firms discover ways to work around the convoluted language..
However, there are exceptions for sponsorships provided by: “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,” according to The Athletic. The NFL also disputes the invention and sale of NFTs. This is in contrast to the niche professional sports leagues like the NHL and MLB. In addition, the National Basketball Association (NBA) saw a surge in popularity while platforms like Top Shot and Sorare are all the rage among NBA fans.
Individuals are allowed to collaborate with cryptocurrency organizations or provide NFTs, according to the guidelines. However, the NFL defines companies that directly deal with cryptocurrencies as follows: “Are cryptocurrency companies or based in countries that prohibit participation of their citizens or are not found on sanctioned exchanges.”
The regulations do contain some exceptions for players, according to The Athletic. Football players will still be able to endorse crypto firms. However, individuals cannot provide them with NFTs prior to a game, postgame press conference or any team-related activity. Furthermore, athletes are not allowed to conduct more than one company endorsement per week during the season.
Cryptocurrency has spread rapidly not only in the United States but also across the world. With so many companies being based on crypto or blockchain, it’s no wonder that professional sports have adopted the trend as well. The National Football League has been relatively slow to adopt this movement despite the huge number of players who endorse it on social media as well as other sports leagues.