According to Price Waterhouse Coopers’ (PwC) Sports Outlook 2022 study for North America, nonfungible tokens, or NFTs, and digital assets are one of the ten significant developments in the sports sector. The research outlines three primary use cases for NFTs, ranging from changing sports technological infrastructure to increasing fan involvement, and their potential to impact the future of sports.
Collectible NFTs are the first use case, which are assets used to offer collectible, authenticated, and limited-edition digital material. This refers to traditional memorabilia that can be digitized, minted, and traded on the blockchain, such as player trading cards or ticket stubs from historic matches. These collectibles might someday be displayed and exchanged throughout metaverses, according to the report.
The NBA Top Shot from Dapper Labs is the “most well-known” example of a collectible NFT collection
The marketplace tokenizes highlights or “greatest“ plays from NBA history, and it recently placed second in the blockchain gaming sector for the most NFT transactions, with $827 million USD in 2021, behind the Axie Infinity game. Autograph, the NFT collectible marketplace founded by legendary NFL quarterback Tom Brady, just raised $170 million in Series B funding.
Second, NFTs for season ticket members, or STMs, could be a significant use case. Season ticket holders would benefit from validated tokenized passes, which would enhance their already positive experience.
STMs who are accustomed to receiving exclusive content and unique stadium experiences may also earn 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 forfeit any additional benefits.
Finally, virtual access tokens are predicted to be in high demand among fans who choose to pay more for a virtual experience but may not be able to attend games in person. Virtual access tokens, dubbed a “new form of season tickets,” may allow 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 such as walk-up music.
Ticket sales, media rights, and sponsorship are currently the most lucrative revenue streams for teams and leagues, according to PwC. It expects tokenized tickets, NFT media rights, and sponsorship of digital or metaverse events to drive the industry’s growth, with digital asset sales potentially becoming a “significant” revenue stream as well. However, teams would require a tech stack that combines their new digital sales data with old customer databases, as well as a competent legal team to address regulatory and tax issues, according to the report.
However, 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 address regulatory and tax considerations, according to the report.
All of these tendencies are on the rise, especially as the popularity of collaborations between NFT marketplaces and sports bodies grows. Magic Eden, a Solana NFT marketplace, just unveiled a new NFT collection in conjunction with Overtime, a sports entertainment platform, to boost fan engagement during the NCAA men’s basketball championship in 2022.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews