The NFL Players Union has reportedly missed out on tens of millions in sponsorship and licensing revenue tied to the burgeoning crypto industry during the 2022 fiscal year, according to The Athletic.
- The NFL Players Association (NFLPA) was unable to collect $41.8 million in licensing and sponsorship revenue related to the crypto industry during the 2022 fiscal year, due to the downfall of the crypto market and subsequent devaluation of NFTs.
- The missing revenue is linked to NFTs launched in collaboration with the NFL and Dapper Labs, a company that runs NFTs for sports leagues, which has been severely impacted by the crypto market crash.
- Amid the crisis, Dapper Labs has proposed renegotiating its deal with the NFL, potentially leading to a 50% or greater reduction in revenue-sharing guarantees.
NFL Players Union Claims Unpaid Millions
According to The Athletic, OneTeam Partners owes the NFL Players Union a significant $41.8 million. This shortfall pertains to revenues generated through the use of players’ brands in licensing and sponsorship deals.
OneTeam Partners, established in 2019, has been pivotal in securing these deals. It also manages merchandizing and player trading card creations. However, a cloud of uncertainty now hangs over the firm’s ability to deliver on its financial obligations.
Inside sources have disclosed that this missing revenue is intrinsically tied to the NFTs launched in partnership with the NFL.
A Partnership with Dapper Labs
The NFTs were part of a deal with Dapper Labs, the firm also responsible for running NFTs for the NBA.
The rise of NFTs in 2021 led to revenue-sharing agreements in the sports industry, some exceeding $10 million. The crypto market collapse resulted in a sharp decline in NFT values. This decline had a ripple effect on associated revenues. Dapper Labs, heavily reliant on NFTs, has been hit hard. This resulted in large-scale layoffs and a significant drop in revenue.
Dapper Labs entered into negotiations with the NFL in April 2023 to revisit the terms of their existing agreement. This renegotiation process carries the potential for a substantial reduction. possibly surpassing 50%, in the previously agreed-upon revenue-sharing guarantees.
As a result, the NFL Players Union now faces significant challenges, as it is unable to secure an anticipated $41.8 million in NFT-related revenue.
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