NFLPA reportedly unable to raise $41.8 million in revenue from crypto logins

[ad_1]

The NFLPA appears to have lost money in the crypto meltdown. (Photo by Rich Graessle/PPI/Icon Sportswire via Getty Images)

Another major sports entity has apparently lost money in the cryptocurrency meltdown.

The NFL Players Association was reportedly unable to collect $41.8 million in revenue from OneTeam Partners, LLC, which the NFLPA disclosed in its annual report to the U.S. Department of Labor, according to Daniel Kaplan of The Athletic. . That could mean a loss of around $20,000 per active NFL player.

As of February 28, 2023, there is uncertainty regarding the collection of certain accounts receivable from OneTeam Partners, LLC,” the union wrote in the annual report, according to the Athletic. “As a result, a provision has been recorded from this date for these amounts. .”

OneTeam Partners works with sports unions like the NFLPA, MLBPA, MLSPA, WNBPA and the United States Women’s National Soccer Team on licensing, marketing and investment, according to the company’s website. . He paid $66 million to the NFLPA and $36.4 million to the MLBPA in 2022, according to The Athletic. Neither OneTeam nor the two sports unions commented on The Athletic when asked about the missing revenue.

Although not explicitly stated in the filing, a source told The Athletic that the revenue is likely tied to the organization’s efforts with NFTs, which are essentially digital versions of highlights or trading cards that can be bought and sold online. A source also hinted to The Athletic that the problem is likely related to Dapper Labs, the platform that handles NFTs for the NFL and NBA, which asked to renegotiate its deal with the leagues in April after the collapse of cryptocurrency.

OneTeam reportedly expected about $60 million from Dapper & DraftKings, of which $41 million would go to the NFLPA, the source told The Athletic. Now, NFTs are relatively new, so most of the money usually comes from Madden and Trading Cards.

While nearly $42 million in missing money is a relatively large number, The Athletic noted that doesn’t mean the NFLPA will go bankrupt. The annual report indicates that the syndicate has more than a billion dollars in assets, certainly enough to continue its activities.

But this potential loss is just the latest example of the sports world’s big misfire with NFTs and crypto in general.

Sports stars like Tom Brady, Steph Curry and Shaquille O’Neal were attached to a high-profile investigation in 2022 after promoting cryptocurrency trading platform FTX. Company founder Sam Bankman-Fried was arrested in January 2022 and charged with a litany of crimes including wire fraud, securities fraud and money laundering after FTX filed for bankruptcy. This event effectively triggered a domino effect that swept through the crypto industry and affected many other digital currency-related businesses.

And the NFLPA seems to be just the most recent victim.

[ad_2]