University of Arizona athletes are now able to appear on personalized digital collectibles with their likenesses and keep the bulk of the profits under a new commercial license agreement.
The deal between UArizona and Athlete Assets is the first of its kind and allows university-owned copyright, logos to be used to create blockchain digital assets known as non-fungible tokens, or NFTs that look like digital trading cards and depict the athletes.
The NFTs are part of a new opportunity that was made possible last year when college athletes were allowed to start making branding and sponsorship deals with businesses in exchange for money or other compensation.
In the past, such arrangements — called name, image and likeness, or NIL, deals — were against the rules and could lead to serious penalties for athletes, teams and schools.
Under this UArizona deal, athletes will be provided with at least two different individually personalized digital collectibles (60 total units for sale) and will be able to pocket more than 80% of the net revenue from the NFT sales, Athlete Assets said.
Adam Small, the CEO of Athlete Assets’ parent company IPAssets, said the license deal has been years in the making.
"We began discussing the application potentials of blockchain digital assets with Tech Launch Arizona nearly 4 years ago,” Small said in a statement. “We're thrilled to be providing the first NIL NFT program for all student-athletes across all sports, not just the super stars.”
Tech Launch Arizona is the office that helps bring UArizona research and developments to market.
The project launched March 17 with NFTs of the Arizona Football team members. Athlete Assets created collectibles that feature every player, and those are being sold through the company’s website for dollars and cryptocurrency.
"Arizona Football is excited that Athlete Assets has secured this unique license, and we are looking forward to the opportunities they can provide student-athletes,” UArizona Coach Jedd Fisch said in a statement.
A special limited edition set of University of Arizona 5-Star WR Tetairoa McMillan #1 Signature NFTs is part of the new Arizona Football team collection.
Athlete Assets said it is working with other universities and athletic departments on similar deals.
