College Football’s Cash Crunch: Can Cannabis Save the Day?

SF Pot Brand Cookies Inks First NCAA Sponsorship in College History

Gilbert “Berner” Milam Jr., founder and CEO of the cannabis brand Cookies, never imagined that the University of Southern California (USC) would agree to a sponsorship deal with his company. “That would never happen,” he recalled thinking when he first heard about the proposal. Yet, in a groundbreaking move, Cookies and USC announced a three-year sponsorship deal this month, marking the first time a college team has partnered with a cannabis company in NCAA history.

Navigating a Complex Landscape

Marketing agreements for cannabis brands are notoriously tricky, with major platforms like Google and Facebook banning their advertisements outright. The NCAA has historically been no different, explicitly listing “marijuana” as a prohibited category for college sports partnerships. Despite these barriers, the Cookies-USC deal is set to place the Cookies name on official USC merchandise and throughout the Trojans’ iconic Coliseum during games.

While the sponsorship is officially tied to Cookies’ CBD and wellness brand, the promotions will prominently feature the well-known Cookies logo. There will be no distinction made for fans in the stands, potentially leading to confusion regarding the cannabis connection.

Pressures for New Revenue Streams

The sponsorship deal comes at a time when college sports are seeking new revenue sources, particularly in the wake of changing rules around name, image, and likeness (NIL) compensation for athletes. Jim Andrews, a sports marketing expert, noted, “They are really under pressure to find new sources of revenue, and this is one that is potentially going to be very large.”

Cookies’ visibility will expand significantly as its branding will reach millions of viewers across the country during USC’s Big Ten football games, along with tailgating events and merchandise displays. This exposure could also pave the way for additional cannabis sponsorships in college sports.

Mixed Reactions and Ethical Concerns

Despite the excitement surrounding the deal, it has generated mixed reactions. Drew DeHart, a vice president at Playfly Sports, which manages USC’s media deals, acknowledged that some may disagree with the partnership. USC Athletics declined to comment on the specifics of the deal, referring inquiries to Playfly Sports, which did not respond.

The partnership focuses on Cookies’ CBD products, a federally legal compound that doesn’t produce the psychoactive effects associated with THC. However, the lack of clarity around the legal separation between Cookies’ CBD and THC operations raises questions about how this sponsorship aligns with NCAA guidelines.

A Shift in NCAA Policies?

Andrews speculates that the NCAA may have quietly altered its stance on cannabis advertising, especially since cannabis was removed from the list of banned substances for football players earlier this year. However, the NCAA has not officially clarified its current position regarding sponsorships from cannabis companies.

The Cookies deal arrives at a pivotal moment for NCAA sports, which have faced legal challenges over athlete compensation. With the recent loss of gambling ad revenue, many college programs are eager to explore cannabis partnerships as a lucrative alternative.

Future Implications

As Cookies leads the charge in this uncharted territory, the implications for college sports could be significant. The partnership not only legitimizes cannabis branding within a collegiate context but also opens the door for other cannabis companies to follow suit.

Berner’s journey from a garage startup to the forefront of a historic sponsorship reflects a changing landscape for both college athletics and the cannabis industry. Whether this partnership will inspire a broader trend remains to be seen, but for now, Cookies has made a mark that could redefine the future of college sports marketing.