On October 17, recreational marijuana use will be legal in Canada. This development has sent multiple cannabis companies’ stock price into the stratosphere; Tilray, a major cannabis producer in Canada, has seen a 750 percent increase in share prices since their IPO in July. Given that Tilray is just one of the many companies jockeying for position in the new marketplace, the feeding frenzy—which financial pundits have named “the green rush”—has no end in sight. And yeah, the money is nothing to sneeze at; the consulting firm Deloitte estimates that that legal weed sales in Canada will generate $7B in 2019.
Anytime there’s potential for a new, untapped revenue stream, no one is paying closer attention to this development than the world of pro sports, who always want a piece of the action.
According to Sports Business Journal, Canadian cannabis company Aphria has an offer on the table with the Canadian Football League for a league-wide sponsorship deal. However, it would be complicated for the CFL to accept sponsorship money without striking cannabis—as well as drug tests for cannabis—from their Collective Bargaining Agreement. A league can’t take money from a company that promotes a substance that’s banned among the league’s player population. With weed being federally legal in Canada, though, a previous hurdle is removed, clearing the way for further progress.