For the time being, the National Football League (NFL) is purportedly prohibiting clubs from selling non-fungible tokens (NFTs) or engaging into sponsorship partnerships with crypto trading firms.
According to The Athletic, the league is enforcing the temporary prohibition as it develops a strategy for entering the market for sports digital cards and arts.
The NFL is also prohibiting NFL teams from selling sponsorship arrangements with cryptocurrency exchanges such as FTX. According to The Athletic, NFL teams can collaborate with asset management firms that market products that monitor the success of crypto currencies.
An unnamed team executive explains the NFL’s new digital asset sector restrictions.
“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.”
Although the NFL has been hesitant to enter the burgeoning NFT market, the National Basketball Association (NBA) is making hundreds of millions of dollars through digital collectibles sales. According to the NFT portal CryptoSlam, the NBA Top Shot, which offers short snippets of NBA highlights as digital collectibles, has produced over $704 million in total sales.
Earlier this year, the NBA’s Miami Heat agreed to a $135 million deal to name its home venue in Florida after crypto exchange FTX. In addition, the Chicago Bulls collaborated with online commerce site Shopify to produce their own NFT collection.