The NFL will now allow the cryptocurrency exchanges that bought Super Bowl ads and nine-figure naming rights deals to do business with its teams — but they can’t use the words “crypto” or “cryptocurrency” to describe the sponsorships. That’s two examples of the fine lines drawn by the NFL in new regulations issued today, which will partly meet teams’ urgent pleas to monetize the white-hot crypto and blockchain space while minimizing brand and legal risk for the conservative league. The new deals also cannot promote the use of any particular cryptocurrency. The rules limit any new deals to three years or less, likely eliminating naming rights deals at NFL game venues. “What should be super clear is we are not promoting cryptocurrency, that’s not part of our policy here,” said NFL Senior VP & Head of Consumer Products Joe Ruggiero. “What we’re exciting about is the broader applications of blockchain technology.” The conservative approach is not a surprise, given the NFL’s track record of moving carefully into fraught new categories such as sports betting, and CRO Renie Anderson’s comments in February about the “volatile” world of cryptocurrency. Speaking privately, some team revenue executives said the rules will prevent teams from fully realizing the value seen by other properties in crypto deals. But they said the policy was a good first step, at least allowing them to develop preliminary relationships with the companies, and they expect the rules to liberalize over time.  

 THE FINE PRINT: Some key features of the new rules include: 

  • Clubs can sign sponsors in crypto exchanges, wallets, payment processors and ancillary services. Clubs cannot directly promote cryptocurrency itself, and those designations must not use the words “crypto” or “cryptocurrency,” instead using terminology such as digital currency. This restriction is intended to keep focus on the legitimate products and services being created in the blockchain-based digital assets space, and to separate the NFL from the links between cryptocurrencies and illegal activity.
  • One team insider speculated this means Crypto.com or other companies whose very brand identity is tied to a particular currency will be at a major disadvantage in pursuing NFL business.
  • Teams still cannot sign intellectual property-based sponsorships with NFT businesses, except with league sponsors — including Dapper Labs, Ticketmaster and Panini — to promote their NFTs. However, teams are now permitted to accept advertising from any NFT business as long as they don’t use club marks and logos.
  • No deal subject to these new regulations can last for more than three years, beyond March ’25, and must have club exit options in the event of adverse legal or regulatory events. Also, clubs are advised against granting any assets to sponsors that cannot be readily unwound. These measures would appear to effectively prohibit large naming rights deals like the blockbuster Crypto.com Arena in L.A. or FTX Arena in Miami, which typically last decades and require millions worth of investment in new, permanent signage. But no assets are specifically banned.
  • Teams can still not issue fan tokens, continuing the status quo. However, brand awareness campaigns from token companies are allowed.
  • Teams can still not accept payments in cryptocurrency. The ban on crypto payments may undercut some interest from exchanges, who have included crypto acceptance part of their deals in some other sports.
  • All sponsorship or advertising deals are subject to an intense pre-approval process by the league, which will mostly center on evaluating the credibility of the sponsor.
  • The league itself will be pursuing deals in the categories as permitted for teams under the new regulations, Ruggiero said. 

AT THE NFL’S PACE: In general, Ruggiero said, a major consideration from the NFL was the degree of regulation that each corner of the blockchain industry is subject to. For instance: exchanges, wallets and payment processors are already touched by standard financial regulatory schemes in the U.S., but tokens and decentralized financial tools are not. “The spaces where we don’t know what’s coming, these are the places we’re going a little bit slower,” Ruggiero said.