The NFL will now let teams seek limited blockchain sponsorships, but cryptocurrency promotion remains banned

A football with the NFL logo

In a memo issued Tuesday, the National Football League granted teams limited permission to seek sponsorship with the technology, a partial reversal from late last summer.

The league decided to allow promotional relationships without the need for excessive regulators or brand risk after completing an evaluation of the technology. The permission that is subject to the NFL's approval excludes stadium signs. For now, restrictions remain in place for specific cryptocurrencies and fan token, which can be exchanged for merchandise and experiences.

The memo states that clubs will not be allowed to directly promotecryptocurrencies.

The decision of the NFL comes after its recent lobbying push. CNBC reported in February that the National Football League was lobbying the Securities and Exchange Commission on issues related to the technology. The White House Office and the Departments of Justice and Commerce were lobbied on.

In this evolving regulatory environment, it remains essential that we proceed carefully when evaluating potential commercial opportunities, and conduct appropriate diligence on all potential partners and their business models.

The annual meetings of the NFL start Saturday in Florida. The league will update team owners on their business initiatives. It will be the first time in a while that the league will hold its meetings in person.

A copy of the memo was obtained by CNBC. The players union and the NFL have a deal with Dapper Labs to produce video collectibles. The NFT trading card rights are held by Panini. During the 2021 season, media partners will be allowed to advertise for the first time during the games.

The head of consumer products for the National Football League told CNBC that the team deals with companies in the space will not last more than three years.

It's not clear how much the league would want. CNBC reported that the National Basketball Association struck a deal with Coinbase worth $192 million over four years. FTX's $10 million deal with the NBA's Golden State Warriors is a good example of a potential deal between companies linked to the internet and sports teams.

We think that it has a lot of potential to shape innovation, shape fan engagement over the course of the coming decade.

Digital ledgers are similar to the one used for cryptocurrencies. Non-hackable certificates of authenticity and virtual collectibles are some of the things it gives. Tuesday's memo gave teams limited permission on NFTs.

Monitors display Coinbase signage during the company’s initial public offering (IPO) at the Nasdaq MarketSite in New York, on Wednesday, April 14, 2021.

The memo states that if the League approves, clubs can accept advertising for NFTs and NFT companies without using club marks or logos. The league will continue to prohibit teams from engaging in product licensing arrangements or sponsorships for NFTs or NFT companies.

Tom Brady and Rob Gronkowski are some of the athletes who have capitalized on the NFT deals. Brady's NFT platform, Autograph, raised $170 million in January.

The NFL co-owns a company called Candy Digital. Major League Baseball NFT rights were locked up by that firm. CNBC reported in October that Candy Digital was worth 1.5 billion dollars after a raise from investors.

The NFL will continue to evaluate its remaining restrictions.

We all have to be looking at the next areas of innovation.