According to the consultancy Price Waterhouse Coopers‘ (PwC) Sports Outlook 2022 study for North America, nonfungible tokens, or NFTs, and digital assets are among the ten significant developments in the sports business. The paper identifies three primary use cases for NFTs and their potential to change the future of sports, ranging from changing sports technological infrastructure to promoting fan engagement.
In fact, Collectible NFTs – assets used to offer collectible, authenticated, and limited-edition digital material — are the initial application. This refers to traditional memorabilia that may be digitised, minted, and traded on the blockchain, such as player trading cards or match ticket stubs. These items might be displayed and shared throughout metaverses, according to the article.
The marketplace tokenizes NBA highlights or “greatest” performances
The NBA Top Shot from Dapper Labs is the “most famous” example of a collectible NFT collection. The marketplace tokenizes NBA highlights or “greatest” performances. And it recently placed second in the blockchain gaming sector for most NFT transactions, with $827 million USD in 2021, behind the Axie Infinity game. Tom Brady’s NFT collectible marketplace Autograph, which just raised $170 million in Series B funding, is another prominent example.
Second, season ticket member NFTs (also known as STM NFTs) are a popular use case. Season ticket holders would enjoy a better experience if they took validated tokenized passes. STMs who accustomed to receiving exclusive content and unique stadium experiences may be eligible to receive limited-edition collector NFTs for the games they attend. Sponsors may gain as well if the teams they support allow them to ensure that customers who lose their actual tickets do not lose access to any further advantages.
Finally, virtual access tokens predicted to be in high demand among fans. Who choose to pay more for a virtual experience and may not be able to attend games in person. Virtual access tokens, which seen as a new type of season tickets, could provide owners access to more behind-the-scenes amenities like player cams, bench cameras, and even virtual locker-room access. Paris Saint-Germain and Manchester City are two soccer clubs that have had success with their fan tokens. Allowing fans to have a say in non-strategic game-day decisions like walk-up music.
Digital asset sales perhaps becoming a “significant” revenue stream
Ticket sales, media rights, and sponsorship are the three main sources of revenue for teams and leagues, according to PwC. It predicts that tokenized tickets, NFT media rights, and sponsorship of digital or metaverse events will drive the industry’s growth. With digital asset sales perhaps becoming a “significant” revenue stream as well. Teams would require a tech stack that combines their new digital sales data with current customer databases. As well as a competent legal team to deal with regulatory and tax consequences, according to the report.
All of these tendencies are growing in popularity, especially as NFT marketplaces and sports bodies form more alliances. Magic Eden, a Solana NFT marketplace, just announced a forthcoming NFT collection in conjunction with Overtime. A sports entertainment platform, to boost fan interaction during the NCAA men’s basketball championship in 2022.