Teams in the NFL are now allowed to seek limited sponsorships using blockchain technology, but promoting cryptocurrency is still prohibited.

• The NFL has granted limited permission for teams to seek blockchain sponsorships, but cryptocurrency promotions and fan tokens are still banned.
• The NFL has approved certain permissions, but stadium signage is still restricted. Cryptocurrency and fan tokens are still subject to restrictions.
• The league's decision was influenced by a recent federal lobbying campaign promoting blockchain technology.

The National Football League has granted limited permission for teams to seek blockchain sponsorships, a partial reversal from last summer, as the technology gains popularity among the organization's fans and athletes.

The league decided to allow promotional relationships without excessive regulatory or brand risk after evaluating the technology. The updated team guidelines, pending NFL approval, exclude stadium signage. Currently, specific cryptocurrencies and fan tokens are restricted and can only be exchanged for merchandise and experiences.

"Cryptocurrency promotion is still prohibited for clubs," the memo states.

The NFL's decision is influenced by its recent lobbying efforts related to blockchain technology, which were reported by CNBC in February. The league lobbied the Securities and Exchange Commission, the White House, and the departments of Justice and Commerce from July through December 2021.

It is crucial to exercise caution when assessing commercial opportunities involving blockchain technology and to conduct thorough due diligence on all potential partners and their business models in this ever-changing regulatory landscape.

The NFL's annual meetings, which take place in Florida starting Saturday, will provide team owners with updates on business initiatives, including the revised blockchain guidelines. These meetings mark the first in-person gathering of the league since 2019 due to the Covid pandemic.

The NFL has granted media partners permission to run blockchain advertisements during the 2021 season, and Panini has been granted the league's NFT trading card rights. The update comes after the NFL and the players union reached a deal with blockchain company Dapper Labs to produce video collectibles. CNBC obtained a copy of the memo issued by NFL Chief Revenue Officer Renie Anderson and Chief Media and Business Officer Brian Rolapp.

The NFL's head of consumer products, Joe Ruggiero, stated that the team will only work with blockchain companies for a maximum of three years, allowing for flexibility in the long term. Ruggiero also mentioned that the NFL could potentially sell its official blockchain rights on the marketplace.

The NFL may seek a deal worth an amount similar to the $192 million agreement between the NBA and CNBC or the $10 million pact between FTX and the Golden State Warriors, according to the newly issued guidance.

Ruggiero stated that he is very optimistic about blockchain technology and believes it has great potential to drive innovation and fan engagement in the coming decade.

Blockchain technology functions as digital ledgers and is utilized for cryptocurrencies, such as Bitcoin, as well as providing non-fungible tokens (NFTs) with unique and unalterable certificates of authenticity. Tuesday's memo granted teams restricted access to NFTs.

The memo states that, pending League approval, Clubs are now allowed to advertise NFTs and NFT companies without using club marks and logos, except in connection with a League NFT deal. However, the league will still prohibit teams from engaging in product licensing arrangements or sponsorships for NFTs or NFT companies, except as permitted in connection with League-level NFT partnerships.

NFL superstars Tom Brady and Rob Gronkowski have seized opportunities in the blockchain marketplace through NFT deals. In January, Brady's NFT platform, Autograph, secured $170 million in funding, as reported by Bloomberg.

In 2021, Candy Digital, an NFT company, secured Major League Baseball NFT rights and raised $1.5 billion in funding from investors, including NFL legend Peyton Manning. The NFL co-owns e-commerce giant Fanatics, which also invested in Candy Digital.

The NFL will continue to assess its remaining limitations on blockchain technology, as stated by Ruggiero.

We must focus on the next areas of innovation as everything is changing rapidly," he stated. "Thus, we are devoting a considerable amount of time examining the potential future directions.