NFL, NBA, and Disney Pivot to Digital NFT Collectibles Amid Tariff Uncertainty

As global trade tensions and tariff volatility continue to disrupt supply chains, major brands like the NFL, NBA, and Disney are increasingly turning to digital collectibles to sustain fan engagement and revenue streams. The shift, driven by rising costs and unpredictability in physical merchandise production, highlights the growing role of non-fungible tokens (NFTs) in the sports and entertainment industries.

Tariff Challenges Reshape Brand Strategies

Recent fluctuations in U.S. tariffs, particularly on imported goods, have increased the cost and complexity of producing physical merchandise like jerseys, apparel, and collectibles. Ridhima Kahn, Vice President of Business Development at Dapper Labs, noted in a Cointelegraph interview that brands are rethinking their revenue models. “A lot of franchises, like the ones we work with — NBA, NFL, Disney — have already had years of success with digital collection, and we’re seeing a lot of brands express interest in digital collectibles as a way to engage with fan bases at a time when physical costs are riskier and unknown,” Kahn said.

Dapper Labs — the force behind NBA Top Shot and NFL All Day — continues to gain traction as digital collectibles gain mainstream attention. According to Kahn, NBA Top Shot, which offers tradable video highlights like a “LeBron Dunk” or “Steph Curry 3-Pointer,” generated $5.6 million in sales in the latest quarter, while NFL All Day reported $2.5 million, reflecting a 7% quarter-over-quarter increase in NFL All Day’s average NFT sales. These platforms allow fans to own and trade digital assets directly within official apps, providing a seamless and engaging experience.

Why Digital Collectibles?

The appeal of digital collectibles lies in their ability to bypass the logistical challenges of physical goods. Unlike traditional merchandise, NFTs bypass delays, shipping costs, and tariffs — they can be instantly created, distributed, and traded on blockchain platforms. This efficiency is particularly valuable amid ongoing U.S.-China trade tensions, which have led to proposed tariffs as high as 35% on certain imports, according to a May 2025 report by Reuters.

Moreover, digital collectibles offer brands a direct line to fan engagement. For example, NFL All Day’s commemorative NFTs are tied to game highlights, allowing fans to own a piece of memorable moments, while Disney’s partnerships with Dapper Labs have explored digital collectibles for iconic characters and franchises. “When you look at the amount of time folks are spending online or in digital environments, it’s only increasing,” Kahn explained, emphasizing the data-driven insights brands gain from tracking NFT ownership and trading patterns.

Market Performance

The pivot to digital collectibles comes at a time when the NFT market is stabilizing after the collapse of its speculative bubble. According to CryptoSlam, global NFT sales volumes reached $242.5 million in April, down 35.08% from the previous month. Among these, NBA Top Shot and NFL All Day recorded sales of $2.6 million and $0.15 million, respectively, in April. Despite brands embracing digital merchandise, user enthusiasm for NFTs remains mixed. Fan communities show mixed acceptance of digital assets. Supporters praise the convenience of trading digital collectibles, especially compared to traditional physical trading cards, while skeptics argue that digital assets cannot replicate the experience of owning physical memorabilia like signed jerseys.

As the initial speculative frenzy around NFTs has faded, NFT products are now seeking new value propositions and enhanced experiences. For instance, blockchain platforms like Flow, which powers Dapper Labs’ projects, have prioritized scalability and user-friendly interfaces to attract mainstream audiences. This has enabled brands like the NBA and NFL to integrate NFTs into their existing apps, lowering the entry barrier for fans unfamiliar with crypto.

However, this shift is not without challenges. Compared to traditional memorabilia, digital merchandise requires significant consumer education costs to help fans understand blockchain technology and recognize the value of digital collectibles like NFTs.

Broader Industry Context

As tariff uncertainties persist, the NFL, NBA, and Disney are likely to deepen their investments in digital collectibles. For fans, this means more opportunities to engage with their favorite teams and characters in innovative ways. As Kahn put it, “If we’re able to continue to offer utility to fans for what they do in a digital space — and what they do in a digital space benefits them in a physical world — that’s going to be the recipe for success.” With physical merchandise facing ongoing supply chain hurdles, the digital pivot may well become a playbook for the future of fandom.