NFL Bans Teams From Taking NFT And Cryptocurrency Sponsorships For The Time Being

According to reports, the NFL informed teams that they can’t accept sponsorship deals from Cryptocurrency trading companies and other cryptocurrency products. The league also prohibits teams from selling non-fungible tokens. The league is currently working to develop a strategy for digital collectibles and sports trading cards.

According to The Athletic, while other professional sports leagues and athletes have been open to crypto products and cryptocurrencies, the NFL is cautious about adopting this technology.

A Stifling Set Of Rules

The NFL has strict rules regarding cryptocurrency and NFT use. The league has communicated to all league teams that they can’t issue or sell non-fungible tokens, and cannot accept sponsorships from crypto trading firms. These rules will remain in effect until the NFL drafts an official strategy to allow the use of non-fungible and crypto tokens in the NFL.

NFTs, crypto and other forms of digital currency have been very popular and adopted in the sporting industry. However, the NFL continues to lag behind and continue its lax approach towards new ventures. The NFL was also one of the last major leagues to allow gambling sponsors.

Slow adoption of crypto

Other leagues, like the NFL, have welcomed NFTs and crypto with open arms. The NFL is still cautious about the adoption of new technology. The league currently plans to only allow teams to associate to companies that are not in the trading field or the asset managers who sell funds to track digital currency markets.

An anonymous team official read out the section of the updated official guidelines that stated:

“Clubs are forbidden from selling or allowing in club controlled media advertisements for specific cryptocurrency, initial coin offerings or other cryptocurrency sales, or any other media categories that relate to blockchain, digital assets or as blockchain companies, except as stated in this policy.”

Notable Exceptions to the Rules

The Athletic states that the new rules allow for sponsorships with companies “whose primary business is to provide investment advisory and/or fund management services in relation to cryptocurrency.”

These restrictions come as the NBA’s Top Shot and Sorare are generating an incredible amount of interest. Some of the larger players in crypto are being excluded by these restrictions, one example being FTX. Tom Brady endorses FTX, a digital currency exchange. Tom Brady also announced other deals in sports, including a $135 million naming rights agreement for Miami Heats Arena over a period of 19 years and a 10-year deal to change Team SoloMid’s name to TSM FTX over a 10-year term.

Disclaimer: This article is intended for informational purposes only. This article is not intended to be used for legal, tax, financial, investment, or any other advice.

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https://www.cryptodaily.co.uk/2021/09/nfl-bans-nfts-and-cryptocurrency-sponsorships-for-teams