Major League Baseball (MLB) has become the first American pro sports league to allow sponsorship and advertisement from CBD brands.
The new rules will come into effect next year with specific regulations over the psychoactive levels of THC.
The MLB is the first such American sports league to allow CBD sponsorships but it may not take long for the other top American sports to follow suit.
The NFL has relaxed its rules on players using cannabis in the off season while the NBA suspended random cannabis testing during Covid-19. Both are clear examples of the growing cannabis movement.
Despite this, for now it remains CBD rather the cannabis that will take the first step with the MLB with the Chief Revenue Office of the MLB making it clear that while they are open to CBD, cannabis remains a no go zone.
Much will depend on the economics behind both the sponsors and the success of the deals however.
It is common for newly regulated or new booming business ventures to become leading sponsors. The sport, and teams, gain a large cash windfall and the brands finally get their name into a mainstream audience.
Gambling and cryptocurrencies are two examples of this. Although illegal in most of the USA gambling sponsors have become a major player in the English Premier Division and below.
Cryptocurrency is the latest example with crypto.com sponsoring Formula 1 while FTX now have the FTX Arena, home to Miami Heat. Both deals were astronomically expensive.
With the latest downturn in the cryptocurrency market it might be possible for CBD and legal cannabis brands to fill the void.
This is particularly true in the US where 38% of the public have tried CBD products. The other major American sports will be keeping a close eye on the MLB sponsorship.
