NFL working on its own strategy
It is believed that the NFL is developing its own league-wide digital strategy. In such a case, other businesses in the market could compete with NFL offerings. The NFL is in the process of hiring officials to develop a strategy for this sector.
The team at The Athletic reportedly read the following guidelines:
Clubs will be prohibited from selling cryptocurrencies or advertising them within club-controlled media. The same goes for other digital assets or offerings that rely on blockchain companies.
This new policy by the NFL follows a number of other sports leagues that have already dipped their toes into their own digital assets. As always, the NFL is being cautious with these new commercial categories and taking it slow before making big moves. The same behavior was seen when the league relaxed its rules on gambling and alcohol.
In terms of cryptocurrencies, teams are currently only allowed to work with companies that don’t directly participate in crypto trading. They are asset managers that sell funds to track digital currency markets.
The new restrictions will affect many crypto giants. Among them is crypto exchange FTX, which is backed by NFL players like football icon Tom Brady. The exchange has made big gains recently after signing a $210 million agreement to change the name of esports organization Team SoloMid to TSM FTX.
The National Football League has also banned the trading of team NFTs. However, this ban is only temporary and will undoubtedly change once the league develops its own strategy.
Successes of the NBA
The NBA has had a lot of success lately with NBA Top Shot. These are the league’s own NFTs with digital highlights that are marketed as unique to the buyer. Top Shot is run by the NBA league and not by individual teams. It is believed that the NFL strategy may involve something similar.
NFL policy does not allow sponsorship with
Companies, whose primary business is to provide investment advisory and/or fund management services related to cryptocurrencies.
Before this rule was enacted, digital currency investment firm Grayscale sponsored the New York Giants. This is one of the only blockchain partnerships in the NFL space.
The NFL is currently hiring a Director of Emerging Products. Required is expertise in NFTs, blockchain, and cryptocurrencies. This is an indication that the league is beginning to develop its own blockchain strategy and capitalize on the proven popularity of sports NFTs seen in the NBA.
Fans of the NFL may soon be able to collect their own unique Non-Fungible Tokens, giving them additional insight into the sport. And of course, they’ll be able to use them to make investments.