The National Football League (NFL) is ready to venture into the non-fungible token (NFT) market after inking a deal with Dapper Labs.
The agreement with the producer of the National Basketball Association’s (NBA) major digital collectibles, which also comprises the league’s players association the NFLPA, will allegedly be publicized this week.
There are not many details available regarding the deal but it is believed that it will look like the NBA’s Top Shot offering. It has also been reported that the contract will see the Vancouver-based Dapper Labs become the NFLPA’s second major source of digital licensing income behind EA Sports, the creator of the Madden video game.
It is to be estimated that both the NFL and NFLPA will try to invest in Dapper Labs as part of an agreement that also comprises of least guarantee and royalties. It was also observed last week when the company elevated US$250 million in a funding round which was headed by global investment manager Coatue, providing Dapper Labs with a value of US$7.6 billion as said by various reports.
Reports have revealed that the new NFT marketplace is predicted to be vigorous before the end of the ongoing NFL season. Supposedly containing exclusive confederation and player rights, Dapper Labs will generate packed NFL highlight videos which will be termed as digital trading cards.
NFL first became interested in NFTs in March. To be precise, it was when the league’s principal media and business officer, Brian Rolapp, directed a memorandum to sides announcing the NFL was in discussions with possible associates to progress a digital collectibles tactic. According to reports, this was in reply to some clubs protesting to a leaguewide exclusive agreement, instead of supporting a team-by-team approach.