The NFL Players Association (NFLPA) has reportedly been unable to collect $41.8 million in revenue from OneTeam Partners, according to the annual report submitted to the U.S. Department of Labor. This equates to an approximate loss of $20,000 per active NFL player.
In their annual report, the NFLPA acknowledged the uncertainty surrounding the collection of certain accounts receivable from OneTeam Partners. As a result, an allowance has been recorded as of February 28, 2023, for those amounts.
OneTeam Partners, known for working with various sports unions including the NFLPA, MLBPA, and others, specializes in licensing, marketing, and investing. In 2022, the company paid $66 million to the NFLPA and $36.4 million to the MLBPA. Both OneTeam Partners and the sports unions declined to comment on the missing revenue when approached by The Athletic.
NFTs are digital assets, often representing highlights or trading cards, that can be bought and sold online. The issue is potentially linked to Dapper Labs, the platform responsible for NFTs in the NFL and NBA, which requested a renegotiation of its deal with the leagues following the cryptocurrency market collapse in April.
While the $42 million revenue loss is substantial, it does not pose a threat to the financial stability of the NFLPA. The annual report confirms that the union holds assets worth over $1 billion, providing sufficient resources to sustain ongoing operations.
This incident adds to the growing list of examples where the sports industry has struggled to fully capitalize on NFTs and the broader crypto market.