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NFLPA reportedly unable to collect $41.8 million in revenue stemming from crypto connections

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

Another major sports entity seemingly lost money in the cryptocurrency collapse.

The NFL Players Association reportedly has been 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 The Athletic's Daniel Kaplan. That could mean a loss of around $20,000 per active NFL player.

“As of Feb. 28, 2023, there is uncertainty surrounding collection of certain accounts receivable from OneTeam Partners, LLC," the union wrote in annual report, per the Athletic. "Therefore, an allowance has been recorded as of that date for those amounts."

OneTeam Partners works with sports unions like the NFLPA, MLBPA, MLSPA, WNBPA and U.S. Women's National Soccer team on licensing, marketing and investing, according to the company's website. It paid the NFLPA $66 million and the MLBPA $36.4 million in 2022, per The Athletic. Neither OneTeam nor the two sports unions commented to The Athletic when asked about the missing revenue.

Though not explicitly stated in the filing, a source told The Athletic that the revenue is likely tied to the organization's endeavors with NFTs, which are basically digital versions of highlights or trading cards which can be bought and sold online. A source also insinuated to The Athletic that the issue is likely tied to Dapper Labs — the platform that runs NFTs for the NFL and NBA — which asked to renegotiate its deal with leagues in April following the cryptocurrency collapse.

“OneTeam would have expected around $60 million from Dapper & DraftKings, of that, $41 million would go to the NFLPA,” the source told the Athletic. “Now, NFTs are relatively new, so most of the money typically comes from Madden and trading cards.”

While almost $42 million in missing money is a relatively large number, The Athletic noted it doesn't mean the NFLPA will go broke. The annual report stated the union has more than $1 billion in assets, certainly enough to continue operations.

But this potential loss is just the most recent example of the sports world's big miss with NFTs and crypto in general.

Sports stars like Tom Brady, Steph Curry and Shaquille O'Neal were attached to a wide-reaching investigation in 2022 after promoting the cryptocurrency trading platform FTX. The company's 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. That event effectively triggered a domino effect that swept through the crypto industry and hit many other companies attached to digital currency.

And the NFLPA appears to be only the most recent victim.