Recently, Major League Baseball (MLB) informed teams that cannabidiol (CBD) sponsorships were no longer prohibited and that they were free to seek sponsorships in the CBD category under certain conditions. CBD companies will also no longer be prohibited from running commercials during broadcasts of MLB games.
According to MLB’s chief revenue officer Noah’s GardenTo be allowed, CBD sponsorships must promote products that are certified as not containing psychoactive levels of THC, the main active ingredient in cannabis. No CBD product with THC concentrations higher than 0.3% would be allowed, as it is classified as marijuana, which is a Schedule I illicit substance All CBD sponsorships will also require the signature of the MLB Commissioner’s Office.
MLB is the first of the four major US sports leagues to allow CBD sponsorships. Before, only UFC i NASCAR had opened the CBD sponsorship category for sale. And while MLB has opened the door to certain CBD sponsorships, for now, neither MLB nor any of the other major American sports leagues allow sponsorships in the broader cannabis category.
This change follows the new one MLB Collective Bargaining Agreement freeing MLB teams to sell advertising positions on team jerseys and player batting helmets beginning in the 2023 season. MLB has confirmed that these lucrative jersey and batting helmet positions will not be off-limits to the CBD companies. garden specifically noted that “[MLB is] open-minded to a patchwork agreement [in the CBD category], depending on the brand and what that brand stands for. It has to be done [be] a brand that represents sport”.
Time will tell if MLB, its teams and its fans embrace CBD sponsorships, but with the cannabis industry’s valuations exceeding dollars13 billion in 2021, the rule change opens the door to a potentially lucrative sponsorship category.
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