The National Football League Players Association (NFLPA) could not collect hundreds of millions of dollars in licensing and sponsorship revenue associated with the crypto industry during the 2022 fiscal year, The Athletic informed ofQuoting sources familiar with the matter.
The NFLPA revealed in its annual filing with the US Department of Labor that OneTeam Partners owed the union $41.8 million in revenue earned through sponsorship and licensing deals using the players’ brands.
NFPL said in its annual report:
“As of February 28, 2023, there is uncertainty surrounding the collection of certain accounts receivable from OneTeam Partners, LLC.”
nft revenue is missing
OneTeam Partners is a company that helps secure sponsorship deals and other licensing opportunities for professional and collegiate athletes who use their brands.
It was established in 2019 as a joint venture by the NFLPA, the Major League Baseball Players Association and private equity to oversee and manage the commercial enterprises of sports associations.
The company also handles merchandising and player trading card making deals.
He also told the news outlet that the missing revenue likely stems from the NFL’s deal with Dapper Labs, which runs NFTs for the NFL and NBA.
The explosion of NFTs during 2021 and the subsequent success of some of the first sports-related NFTs has given rise to a culture of revenue sharing deals in the industry, with several sports leagues signing them.
According to Sportico, some of these deals were done with amounts in excess of $10 million. reports,
However, the ensuing collapse of the crypto market resulted in a rapid decline in the value of NFTs, significantly reducing interest in the nascent sector. This had a sharp impact on the revenues of companies that were primarily involved with NFTs – including Dapper Labs.
Dapper Labs is juggling between the prolonged crypto winter and its impact on the NFT sector. Since the market crash in May 2022, the company has laid off nearly half of its workforce and reported a sharp drop in revenue.
In an effort to alleviate some of the difficulties, the company requested in April to renegotiate the terms of its deal with the NFL.