The National Football League Players Association (NFLPA) failed to raise tens of millions of dollars in licensing and sponsorship revenue related to the cryptocurrency industry during fiscal year 2022, reports The Athletic. reportsaid, citing a person familiar with the matter.
In its annual filing with the U.S. Department of Labor, the NFLPA revealed that One Team Partners owed the union $41.8 million in income from sponsorships and licensing agreements using player brands.
The NFPL said in its annual report:
“As of February 28, 2023, there is uncertainty regarding the collection of certain accounts receivable from OneTeam Partners, LLC.”
I can’t find my NFT earnings
OneTeam Partners is a company that helps secure sponsorship deals and other licensing opportunities for professional and collegiate athletes using their brands.
The company was formed in 2019 as a joint venture by the NFLPA, the Major League Baseball Players Association and private equity to oversee and manage the commercial operations of sports unions.
The company also deals in the merchandising and creation of player trading cards.
A person familiar with the deal told The Athletic that the lost revenue was related to NFTs launched in collaboration with the NFL in 2021-2022.
They also told news outlets that the lost revenue was likely due to the NFL’s contract with Dapper Labs, which operates NFTs for the NFL and the NBA.
dapper lab
The explosive growth of NFTs in 2021 and the subsequent success of some of the first sports-related NFTs has created a culture of revenue-sharing agreements in the industry, including with many sports leagues.
According to Sportico, some of these deals were closed for more than $10 million. report.
However, the subsequent collapse of the cryptocurrency market led to a rapid decline in the value of NFTs, greatly diminishing interest in the emerging sector. This has had a significant impact on the bottom line of companies primarily involved in his NFTs, including Dapper Labs.
Dapper Labs is struggling amid a prolonged crypto winter and its impact on the NFT sector. The company laid off almost half of its workforce and reported a significant drop in revenue since the market crash in May 2022.
To alleviate some of the pain, the company asked in April to renegotiate the terms of its contract with the NFL.
Officials told Sportico at the time that the talks could reduce revenue-sharing guarantees by more than 50%.
The post-NFL players union, unable to recover $41.8 million in NFT-related revenue, first appeared on CryptoSlate.
