Popular U.S. CBD company Charlotte’s Web Holdings (CW) will pay Major League Baseball $30.5 million plus a 10% royalty on sales and grant the professional sports organization 4% of the company’s shares in a historical marketing deal that was announced last week.
In return, Charlotte’s Web-branded products will become the “Official CBD of MLB” under the exclusive agreement. This marks the first time a professional sports league formed a sponsor partnership with a CBD company.
The deal will last till 2025 and will increase the visibility of the CW brand and raise awareness of CBD products in general. It will hopefully create more opportunities for similar deals in the sector.
MLB said in a press release that it entered the agreement after CW’s products underwent independent testing by NSF International, a consumer safety and product-testing organization, through which it met the league’s scientific standards. The league also said the products are in line with its policies on banned performance-enhancing substances.
As part of the deal, Charlotte’s Web is set to release a sports-themed line of “Daily Edge”-branded tincture, gummies, topicals and oral sprays that will feature the MLB logo.
“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,” said Noah Garden, MLB’s chief revenue officer.
