In June, the MLB announced that clubs were permitted to form sponsorships with CBD companies that were certified for sport by the National Science Foundation. This foundation is an institution that approves standards for products used by athletes.
Recently, Major League Baseball entered into a sponsorship deal with Charlotte’s Web Holdings Inc. This comes after the league removed CBD from its list of banned substances in 2019, making it the first sports league in the United States to do so. CBD (cannabidiol) is one of the two primary compounds found in marijuana, the other being THC. Unlike THC, however, this compound doesn’t induce any highs. It does have medicinal properties that help alleviate stress and relieve pain.
Charlotte’s Web Holdings produces a range of CBD products, including gummies, topical sprays and tinctures. Following the announcement, the CBD maker’s stock rose by more than 25%.
In its press release, Major League Baseball stated that this deal brought major brands together to fill a gap in the sports channel for a certified portfolio of CBD products, which could help meet the needs of consumers and players who demand natural and safe options to help with focus and sleep cycles, help keep calm under pressure and help to support their recovery.
This new partnership comes at the same time that Charlotte Web launches a new CBD product known as the Daily Edge, which is the first CBD product to be certified for sports by the National Science Foundation. This product will feature the Major Baseball League’s logo on its packaging.
This three-year deal between these legacy brands is said to be worth $30.5 million. Its conditions include the promotion of products manufactured by Charlotte’s Web during games as well as on the league’s streaming digital channels, social media platforms and post-season games. The Major League Baseball’s fanbase is approximately 180 million fans. This will bring a whole new customer demographic to the CBD company.
Currently, the U.S. Food and Drug Administration (FDA) hasn’t approved CBD products. However, this hasn’t hindered the CBD market from growing in popularity, with figures from last year showing that the country’s CBD market recorded sales worth $4.7 billion.
The deal also afforded the league ownership of roughly six shares of Charlotte’s Web. In addition, the CBD maker will pay the league 10% royalty on any products with the Major League Baseball’s branding that are sold, once total sales surpass $18 million.
As more of these deals are signed, the popularity of marijuana and the associated industry actors such as REZYFi Inc. will keep growing as pressure mounts to enact reforms federally.
NOTE TO INVESTORS: The latest news and updates relating to REZYFi Inc. are available in the company’s newsroom at https://cnw.fm/REZY
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