The NFL now lets teams chase blockchain sponsors but bans specific crypto and fan token deals

Photo by Brian Rothmuller/Icon Sportswire via Getty Images

The National Football League will allow teams to sponsor. According to a report from CNBC, it will still prohibit them from promoting specific cryptocurrencies. The previous decision by the NFL to bar teams from using cryptocurrencies completely was reversed.

In an internal memo seen by CNBC, the NFL says it will allow promotional relationships without undertaking excessive regulators or brand risk. It also states that clubs will not be allowed to directly promotecryptocurrencies.

Joe Ruggiero, the NFL's head of consumer products, said in a statement to CNBC that teams can only sponsor for a maximum of three years. This will prevent long-term deals like the $700 million 20 year deal with the LA Staples Center, which is now known as the Crypto.com Arena. He told the outlet that the league is considering selling its rights to a company.

The rule change won't allow the use of official logos and other markings in any of the ads. It will allow the use of logos and direct sponsorships, however, if they are engaged in product licensing arrangements or NFT companies.

It is understandable that the NFL is hesitant towards backing specific cryptocurrencies. In December, the UK's advertising regulator banned the soccer team from promoting its own fan token for misleading fans about the risks. The CEO of the popular Socios exchange was accused of manipulating the value of the currency used on the platform.

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 changes to the rules surrounding the blockchain will be discussed by the team owners of the National Football League on Saturday.

The NFL hasn't been very conservative when it comes to experimenting with NFTs and cryptocurrencies. The league attached NFTs to the tickets of some of its games last year and did it again for the Super Bowl. The first NFT trading card packs were developed with the help of the trading card company.

Despite banning ads on cannabis, the Super Bowl still aired a popular ad from Coinbase. Tom Brady created his own NFT agency, called Autograph, after receiving a portion of his salary in thecryptocurrencies.