US NFL star Odell Beckham becomes the latest player to be paid in cryptocurrency
The Los Angeles Rams wide receiver has requested that his new employer pay him entirely in bitcoin as part of his contract with the team.
Odell Beckham Jr. signed a one-year deal with the Rams in November, worth around $4.25 million, having left the Cleveland Browns.
On Twitter, he announced: “It’s a NEW ERA & to kick that off I’m hyped to announce that I’m taking my new salary in Bitcoin thanks to CashApp.”
The Rams already have a close association with the cryptoasset industry, announcing that the world-famous Staples Center sports and entertainment arena in downtown Los Angeles will be renamed the Crypto.com Arena, under a new agreement with the leading crypto website.
The NFL has been an early adopter of cryptocurrency payments for players, with the New York Giant’s running back Saquon Barkley and Green Bay Packer’s quarterback Aaron Rodgers already receiving part of their salary in Bitcoin, according to Bitcoin Magazine.
Mohit Pasricha, Head of Sports and Entertainment at Mackrell.Solicitors, said: “A growing number of sports stars are turning to cryptocurrency instead of fiat currency to get paid, as they seek to reap the rewards of the boom in cryptocurrency prices – and often to tie in with other deals they are doing with large crypto brands.
“This may prove very lucrative for them if the price of cryptocurrencies like Bitcoin continues to go up, but like many forms of traditional investments, cryptocurrencies are subject to market forces and could suddenly drop in value.
“Players need to consider this not only in the short-term when signing a contract, but also in the long-term beyond their career. They may wish to ensure they also have an income in regular currency in case there is a significant market correction.”
Mohit said that players also needed to consider how they might be taxed, should they later decide to dispose of their cryptocurrency in a large transaction, as well as their ability to quickly liquidate digital currency should they need to.
To find out more about Mackrell.Solicitors’ Sports, Entertainment and Cryptoasset services, please contact Mohit Pasricha by calling +44 (0) 207 240 0521 or emailing mohit.pasricha@mackrell.com or Asim Arshad by emailing asim.arshad@mackrell.com