The NFL has a new sponsorship category in crypto. Franchises can now seek partnerships with various cryptocurrency advertisers. But they are advised to refrain from promoting unproven blockchain projects.
Digital currencies gained much attention last year after bitcoin skyrocketed to an all-time high of $69,500. The limelight got to the NFL. And soon, it forged new partnerships.
This year, crypto is experiencing a market crash. Still, its relationship with Major Football is intact. Here’s how the blockchain industry is impacting the National Football League:
Increased Sponsorship Revenues
Last March, the NFL sent a memo to all 32 NFL teams that they could seek crypto sponsorship deals. This is one of the reasons that made Socios’ fan token idea a success.
Before the announcement, only the New England Patriots were interested in creating a fan token. Post the decision; a dozen more franchises got interested in the deal.
Over time, more crypto startups have partnered with different NFL franchises. Crypto companies seek NFL sponsorships because it’s the biggest Major League in the country. It provides tremendous exposure to brands.
In turn, crypto sponsorships mean more money to NFL teams and the league. More money helps pay athletes and non-playing staff. It helps maintain infrastructure and invest in new sports technologies.
The NFL has sought new sponsorship opportunities in the past couple of years. Last year, the league added $1.8 billion in revenues thanks to new sponsorship deals with sports betting companies.
The US legalized sports betting at a state level in 2018. Since then, over 20 states have passed legalization laws. Some states don’t permit sports betting yet. And in these states, fans can use offshore betting sites that can be trusted.
Crypto Fan Tokens Fan tokens are digital currencies NFL franchises can use to keep their fans engaged. The tokens can gain monetary value, which keeps them in great demand.
They also have a maximum cap, ensuring their value grows over time. Importantly, NFL tokens have important use cases. Fans can use them to vote on essential team decisions.
So far, 13 NFL franchises are interested in launching fan tokens through the popular crypto platform: Socios. The teams include the Atlanta Falcons, Chicago Bears, Tampa Bay Buccaneers, and Washington Commanders.
Socios has created fan tokens for major soccer giants like PSG, Man City, and Juventus. Some of these tokens skyrocketed in price after their initial release, indicating sports fans want a piece of the crypto pie.
Attracting Gen Z to Football
When you think about it, companies sponsor sports teams to get the attention of their target audience. That’s half the case in the NFL. There are a lot of football fans who love crypto.
That audience often needs to include Generation Z, though. According to Yahoo Sports, young people under 25 don’t watch football as much as millennials and older generations.
It may soon change as crypto continues to partner with NFL teams. By partnering with crypto, the NFL shows Gen Z that it cares about them and what they love.
Likewise, athletes’ crypto endorsement is increasingly grabbing young players’ attention. Athletes and celebrities often hold a lot of influence on their fans. By
endorsing crypto products, NFL players aren’t just creating visibility for different brands. They are also popularizing football with young people who love the blockchain.
Athletes Getting Paid in Bitcoin
Last November, NFL Wide Receiver Odell Beckham hit the headlines after announcing that he would convert his salary worth $750,000 into Bitcoin. Since then, more players have joined the trend.
For example, legendary quarterback Aaron Rodgers partnered with Cash App last year to allow him to accept part of his income through Bitcoin. Showing some support for crypto, the Green Bay Packers legend announced he would donate $1 million worth of bitcoin to charity.
Rodgers’ long-term rival Tom Brady is yet another NFL athlete heavily invested in Bitcoin. Last year, Brady bought a stake in the almost bankrupt crypto exchange FTX, fueling rumors that he may have lost over $500 million in the deal.
For clarity, most NFL players are only accepting part of their pay in crypto. They either take a percentage of it or invest in crypto projects. Saquon Barkley is still accepting his base pay in FIAT. But all income earned through endorsement has to be done in Bitcoin.
Commemorative NFTs
2021 was the year of NFTs—Non-Fungible Tokens. Former Twitter CEO Jack Dorsey sold an NFT of his first-ever tweet for $2.8 million. Then celebrities started creating NFTs centered on their projects.
In a few months, NFTs were a billion-dollar industry. They got so popular that the NFL launched commemorative NFTs during the 2021-22 season and the Super Bowl.
For the uninitiated, NFTs are digital art pieces you can’t duplicate. They can also gain value, especially if they are rare and hold a use case. For example, some NFTs grant you the right to own real-life items like houses and cars.
The commemorative NFTs the League gave its fans last year were a way to test the ways. But ever since crypto entered a bear market, talks about NFTs have been minimal.
Growing Interest in Crypto
Crypto has long had to fight the notion that it’s a complicated technology. It has often been misunderstood and misrepresented. By advertising on the largest sports league in the country, crypto is getting the kind of attention it deserves.
People are talking about it. Americans are learning more about the blockchain and the opportunities that lie within it. These conversations could build the foundations for what’s next for crypto.
Although crypto prices have plummeted for the majority of this year, there’s a growing adoption of blockchain projects around the world. It means people are aware of the technology and what it can do. Bitcoin prices may not be appealing. But the future of crypto and the blockchain, in general, looks bright.
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