Major League Baseball signs Charlotte's Web as first CBD sponsor
Major League Baseball has signed a sponsorship deal with cannabis brand Charlotte's Web, becoming the first major U.S. league to sign a CBD sponsor.
Why it matters: As with gambling, the increasing legalization of marijuana use opens another once-taboo category for sports. Expect other leagues to quickly follow suit.
Details: Charlotte's Web's deal makes it the "Official CBD of MLB" and covers this year's playoffs and the next three years.
- The company will launch an MLB-branded line of CBD products and will have signage during the playoffs and World Series games.
- Sports Business Journal first reported the deal and describes the agreement as "non-traditional," with a rights fee and revenue sharing. MLB also gets shares in Charlotte's Web Holdings, which trades on the Toronto Exchange.
- This is Charlotte's Web's second major sponsorship deal. In June, it signed as the official CBD sponsor for NWSL club Angel City FC.
- "We are excited about the possibilities this partnership offers as CBD becomes a more widely adopted part of the health and wellness regimen of our players and fans," MLB chief revenue officer Noah Garden said in a statement.
Catch up quick: MLB announced in June it would allow teams to start selling CBD sponsorships.
- The companies have to be certified by the testing organization NSF that their products do not have psychoactive levels of THC.
- The UFC signed its first CBD deal in 2019 with Aurora, and last year signed a five-year deal with Love Hemp. Earlier this year, NASCAR's Richard Childress made 3Chi the racing league's first CBD car sponsor.