In a recent announcement, Major League Baseball announced a sponsorship deal with the Charlotte Web for Hemp (CBD).
Major League Baseball (MLB) continues to be a major star in the cannabis industry. In 2019, they removed cannabidiol (CBD) from the list of banned drugs (1), which was the first American sports league to do so. Now, MLB is again the favorite with a sponsorship deal with CBD maker Charlotte Web, the first major US sports leagues to reach a deal with CBD (2).
CBD is a cannabinoid known for its medicinal uses for pain relief and stress relief. Charlotte’s Web Holdings Inc. produces. A variety of CBD products such as tinctures, topical sprays, and gummies. The MLB press release (3) stated, “The rigorous approval process that brought the two legacy brands together fills a significant gap in the sports channel’s NSF Certified for Sport® portfolio of CBD products for gamers and consumers who demand safe and natural options to support recovery, and help keep the under stress, helping sleep cycles and focus.”
In June, the American Athletic Association officially allowed clubs to form sponsorships with CBD companies approved for sport by the National Science Foundation (NSF), an organization that sets standards for products used by athletes. Many celebrities and athletes have endorsed CBD products. For example, Hall of Fame National Football League (NFL) Terrell Davis partnered with investors in 2018 to produce a CBD-infused sports drink (2).
The newly formed partnership between MLB and Charlotte’s Web arrives as the CBD maker releases a product called Daily Edge, a tincture that is also the first CBD product to be approved for sports by the NSF. The item will have the MLB logo on its bottle. The US Food and Drug Administration (FDA) has yet to certify CBD products, but that hasn’t stopped cannabinoids from becoming more popular. As reported in 2021 (2), the total turnover of the CBD market in the United States was $4.7 billion. The three-year MLB and Charlotte’s Web deal is worth $30.5 million (1). One component of the deal will be promoting Charlotte’s web products during games, as well as on MLB’s social media platforms, streaming digital channels, and during post-season games. The tournament’s fan base is estimated to be around 180 million, which will bring a different geographic area of customers to the Charlotte Network.
“Wherever you see MLB, you’ll see Charlotte’s Web,” Charlotte Web CEO Jack Turtoroli told CBS on their MoneyWatch (1). “What we are about is making sure there is a calmness of mind so that you can give your best.”
MLB is also included in their partnership, and has earned a rating of 6.1 Charlotte Network shares (1). CBD is also required to pay MLB a 10% fee on any MLB-branded products sold after total sales exceed $18 million. Shortly after the MLB announcement, Charlotte Web stock rose about 25% and was trading at 75 cents a share.
Noah Garden, MLB chief revenue officer, said in an MLB statement (3,4). Garden also added that the deal makes CBD “a widely adopted part of the health and wellness system for our players and fans.”
“Nature is the smartest and most advanced technological system in our world, and when we work with nature for health and innovate through the lens of community care, we can truly redefine what it means to be an athlete. This is what it means to be an athlete,” said Jared Stanley, co-founder, COO Charlotte’s Web (3). It’s a game changer, and I’m excited about what we can achieve with the MLB partnership.
With this exciting new partnership just made official, it’s definitely a CBD home experience.