There is no doubt that the Cannabis/CBD business is steadily finding its way into the mainstream, and that of course includes the billion dollar business of sports. On Monday USA Triathlon became the first National Governing Body to join the partnership growth, announcing a deal with Pure Spectrum, which is based in Colorado and that sells products containing cannabidiol, or CBD. The deal is significant as it will begin to test the waters of the World Antidoping Association (WADA) on the banned substance list, and could signal an even wider shift in the sponsorship area than we have seen to date. Several properties, the NWHL, the Big 3 and the UFC have been working with various companies in the CBD space for a while, but there are still conflicts and some confusion as things play out state by state on both the CBD side and the recreational Cannabis front. Case in point, as reference last week at the Octagon Sports Marketing Summit, NASCAR allows limited sponsorship of racing teams for CBD, yet drivers cannot use the substance for pain relief. The PGA Tour allows players to endorse CBD brands, but the Tour itself will not allow overall sponsorships. The media restrictions also remain tight, with several companies looking to purchase space on arenas or game programs still being held back but teams and leagues, and broadcast rules still heavily restrict ads that can be run.
As former NFL lineman Kyle Turley, also a speaker at the event, pointed out, the use of CBD has been life changing for him and millions of others in terms of pain relief, and it becomes a matter of education that needs to be continuously done to explain to the public the benefits of the products…Turley runs a fast growing company in the space, NeuroXPF…vs. many thinking this is all about hallucinogenic drugs and massive amounts of marijuana being smoked in dugouts and lockerrooms. Turley pointedly explained how the effective use of CBD would be a key way to reverse the growing opioid epidemic plaguing not just athletes but the general public because of the non addictive elements of CBD. The opportunity is growing, and with it will come revenue as the field clears up.
Now let’s be clear there is also a massive business growing in the legalized recreational cannabis business that will also impact sports. One of the first teams to adopt advertising for dispensaries was the Las Vegas Lights of the USL since cannabis is legal in Nevada. While we have seen some in fight sports sign on, few if any, other teams have taken the sponsorship plunge in the recreational space, but most experts in the field see it coming, and are carefully watching booth courts of law and courts of public opinion. One area of particular growth is the infused drink marketplace, which has taken root (no pun intended) in California. Those involved in the market preach the less addictive side effects and the quicker recovery for the casual, legal user, than he or she would have with alcohol, which is of course a key revenue driver for virtually every sport on the planet where the demo is 18 and older.
Is it a fad which will go the way of ZIMA or wine coolers? Maybe not. The UFC, a first adopter in the CBD space, sees the cannabis infused market as ready to explode. How big? Could it surpass beer when all the legalities are worked out. “Yes I believe it will,” said the UFC’s Paul Ascencio last week.
Now is this business still very hazy (OK another pun). Yes it is. Is the health and wellness space in sport growing like crazy? For sure. Will there be more fits and starts before we get clarity and massive business investment? Yes. Is it a business that will grow and all should be watching.
The answer to that; is a clear yes.
