This is how Canopy Growth is targeting the NFL…
In 2018, the NFL brought in $15 billion, and Commissioner Roger Goodell has a plan to reach $27 billion in revenue by 2027.
As a reference point, that’s about as much money as all of Twitter Inc. is worth right now.
And here’s an interesting note – ratings fell 10% last season.
However, merchandise sales were still up 40% year-over-year.
Unfortunately, this season – and for many, many seasons – my New York Jets haven’t given me much to be excited about.
Quarterback Sam Darnold gave some life to the team when he returned from an injury against the Dallas Cowboys, but I’m not getting my hopes up. It will be a long road to displace the New England Patriots from their spot at the top of the AFC West.
But whether you’re rooting for Patriots or the winless Miami Dolphins, the fact remains that the NFL still owns a day of a week.
And it’s going past just Sunday. Millions are watching Monday Night Football and Thursday Night Football.
Canopy Growth’s Next Big Bet
Canopy Growth Corp. (NYSE: CGC) recently bought a majority stake in BioSteel Sports Nutrition.
Biosteel Sports is a sports-beverage firm that focuses on hydration and recovery products for athletes.
But this is far more than just your average beverage company.
Its products are used by athletes in the NFL, MLB, and NHL.
BioSteel also has an impressive roster of brand ambassadors that includes former NHL great Wayne Gretzky and running back sensation Ezekiel Elliott.
Now with the resources of BioSteel at its disposal, Canopy Growth can create CBD-infused sports drinks. While NFL players aren’t allowed to use CBD right now, there’s belief that change is coming.
Carson Palmer, a former NFL quarterback, was asked on a sports talk show if the NFL would ever partner with a CBD company.
“I absolutely think so. I think it’s already in locker rooms in all sports,” Palmer said.
Would BioSteel be able to score a deal with the NFL?
That’s not worth speculating on until the league changes its policy on cannabis.
But BioSteel is already selling non-CBD products, so it is generating revenue in the here and now.
I’ve written before about the shifting views in the cannabis industry.
We know how the story will end; this is unlike any other market I’ve seen in my lifetime. Eventually, marijuana companies will be seen as a defensive stocks that can ride out recessions.
One way to do that is to “buy growth.”
Building something from scratch works in certain situations, but it requires a lot of capital and time to get things up and running. On the flip side, if you buy an established company, you immediately get access to a customer base and the revenue generated from those customers.
Ultimately, this is a very strategic move and, when Canopy gets a new CEO, he or she should benefit from BioSteel being under Canopy’s umbrella.
Executive Director, National Institute for Cannabis Investors
15 responses to “Canopy’s Next Big Target Is the NFL”
October 24 2019