The NFL is reportedly telling its franchises to sign only short-term deals with daily fantasy sports websites, which could be setting the stage for the future of DFS and the league.
The news came from a short story over at Street & Smith’s Sports Business Daily:
The NFL told teams they could only sign daily fantasy deals for one year, conveying that message at the league’s annual meeting in Arizona. Several teams have begun signing the deals, and the league wanted to formalize the space because it had no policy in the category. …
Teams that have been signing the deals with companies like FanDuel and DraftKings have had to include one-year opt-out provisions in those contracts, sources said.
That development came to light soon after two teams — the St. Louis Rams and the Baltimore Ravens — reportedly agreed to terms on a sponsorship deal with FanDuel. It brought the number of NFL teams that have deals with FanDuel or Draft Kings to a total of six. The others?
The NFL is clearly high on fantasy sports — commissioner Roger Goodell said as much in an interview at NFL.com last year. And the first thing you can click on at the NFL’s website is the section labeled “Fantasy.” However, it’s not clear that the league is ready to become a player in daily fantasy sports.
So, with the NFL reportedly mandating one-year deals for teams with individual DFS sites, what could the league be planning or thinking? Here are some possibilities/speculation:
The NFL is one of the few major dominoes left to fall for real-money DFS sites as they try to secure sponsorship deals with leagues for increased marketing opportunities. Clearly, if FanDuel or DraftKings got a deal done with the NFL, it would be a major coup for one of them.
Here is where the other major North American leagues and commissioners stand on the issue:
The reported one-year-deal mandate by the NFL is far from a clear indication that it is ready to move forward on DFS. But it is the first official action we have seen out of the league in the DFS space, and everyone in the industry will be waiting to see what it will do next.