Most people were skeptical when the first crypto came out. Nowadays, digital money is part of something as big as the NFL. Many popular players have asked their teams to pay them with cryptocurrencies instead of regular cash.
While you could see this as something normal, the truth is that it has more effects than you could imagine. This changes how the league’s economy works. Besides that, it could also push crypto developers to invest more in making digital currencies better.
Do you want to learn more about how crypto may change NFL draft deals? This is the page for you. Here, you will learn the effect using digital currencies will have in the league and what you can expect from it in the future.
Check out our website to read more blog posts related to cryptos and how they evolve each day. You don’t want to miss the opportunity to benefit from this technology, so it’s best to stay tuned to its development.
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Why Are Players Choosing Crypto Over Money?
Crypto offers many benefits over regular currencies. The first is the potential for growth and long-term wealth-building it gives you. Bitcoin, for example, works as a hedge against inflation.
What does that mean? In a nutshell, Bitcoin’s price goes up when other currencies lose their value. Therefore, diversifying your portfolio to get crypto helps you stay in business when inflation strikes.
Besides that, the fact that crypto can become more valuable in the future represents a more lucrative option than a fixed-dollar salary. It’s risky, of course, but it’s a chance to increase your income without charging more for your contract.
The average NFL career is relatively short, like it happens with other sports. Hence, players need to find a way to keep getting money after they retire. Cryptocurrencies give them that.
Although crypto is a volatile asset, it offers financial security after you retire if you know how to manage it. Saquon Barkley, for example, started to receive endorsement deals in Bitcoin in 2021. He did this through a partnership with Strike.
Sean Culkin also stated that he believes crypto will protect his purchasing power in the future. Cryptocurrencies are still developing, but we may see more NFL players switching to them in the long run.
What Effect Does This Have on NFL Draft Deals?
The fact that more NFL players are asking for crypto payments will significantly impact how NFL draft deals work, especially if this shows good results. Why? These are a few of the reasons:
Contract Structure
Switching to cryptocurrencies could alter the regular contract structure in the NFL. Teams can now, for example, tie their salary to a specific token. They could also have crypto signing bonuses and tax advantages to make working with them more appealing.
If this crypto thing goes well, the way draft deals work will change completely. Teams will have a new way to compete with others and get important players to work with them.
Let’s say the owner of a team wants to work with a specific player but doesn’t have enough money to bring them in. They now have a unique way to convince them to play for them.
In this case, offering crypto gives players the opportunity to build their future wealth, which is better than a fixed-dollar salary.
Thanks to that, all teams will start negotiating with crypto to get the best players in the draft. Some athletes may only work with specific assets, so teams will have to adapt to what they ask for.
Fan Engagement
Although the NFL is already famous worldwide, switching to crypto may increase fan engagement. Digital currencies give sports enjoyers a new way to interact with every match.
Someone could buy shares of a rookie quarterback’s future earnings or a portion of a team’s ticket sales. That way, fans can invest in their favorite teams and get money for it.
Legality and League Regulations
If a sports league as big as the NFL starts dealing with crypto, the government may promote more regulations on how players can use it for their contracts. This includes the terms for the conversion and taxation of digital assets.
Besides that, if crypto breaks the NFL draft system, the league could impose regulations on how teams negotiate with these currencies.
Are There Any Regulations on How People Can Use Crypto in Sports Contracts?
Currently, there are no specific regulations on how players can use crypto in their sports contracts. That means teams have all the freedom they want to include them in their initial offer to players.
Regardless of that, some specific regulations could indirectly limit what people can do with crypto. The Securities and Exchange Commission (SEC) is an example of that.
Digital currencies could be classified as securities depending on the case. This allows the SEC to control how people use them.
The IRS sees crypto as property for tax purposes. That’s something athletes need to consider when they think about getting paid with digital currencies.
What’s Next?
Players started to notice the benefits of cryptocurrencies a few years ago, so the true effects of this are not here yet. However, depending on the results they get, this could change how things work in the draft.
First, the league will more likely establish internal regulations on how teams can include crypto in their contracts. The competitiveness of the draft season will increase a lot, and players may get pickier.
Online crypto platforms may start collaborating with NFL teams to catch more players. This will help the development of digital currencies.
Final Thoughts
Cryptocurrencies can be a powerful tool in the right hands. The problem is that people are often too scared to try them due to scams. Likewise, it’s often complex to understand how crypto works when you first hear about it.
Now, if NFL players start asking for crypto in their draft contracts, things will change a lot. Digital currencies will gain more visibility, and more people will try to invest in these assets. This could even alter the actual price of the currency.
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