PwC report calls NFTs ‘the future of digital assets in sports’
Non-fungible tokens, or NFTs, and digital assets are one of the top ten trends in the sports industry, according to consultancy Price Waterhouse Coopers, or PwC, Sports Outlook 2022 report for North America. From changing sports technology infrastructure to driving fan engagement, the report lists three key use cases for NFTs and their likelihood to shape the future of sports.
The first use case is for collectible NFTs – assets used to sell collectible, authenticated, and limited-edition digital content. This refers to traditional memorabilia like player trading cards or ticket stubs from historic matches that can be scanned, minted and traded on the blockchain. The report added that these collectibles could potentially be viewed and shared across metaverses.
The “best known” example of a collectible NFT collection is the NBA Top Shot from Dapper Labs. The market symbolizes strengths or “best” games in NBA history, and recently ranked second, after the game Axie Infinity, for the most NFT transactions in the blockchain gaming industry with $827 million in 2021. Another popular example is NFL quarterback Tom Brady’s NFT collectible. Autograph marketplace, which recently raised $170 million in Series B funding.
Second, Season Pass Members, or STM, NFTs could be considered another big use case. Providing season subscribers with verified passes would enhance the experience of an already loyal fan. STMs used to having access to additional special content and stadium experiences could also receive special edition collectible NFTs for matches they attend. And sponsors could also benefit if the teams they sponsor allow them to ensure that customers who lose their physical tickets will not lose any additional benefits.
Finally, virtual access tokens for fans who prefer to pay more for a virtual experience and who may not be able to attend matches in person are expected to be in demand. Described as a new take on subscriptions, virtual access tokens could give owners access to more behind-the-scenes perks such as player cams, bench cams or even virtual locker room access. Some football clubs that have had successes so far with their fan tokens are Paris Saint-Germain and Manchester City giving fans the right to influence non-strategic matchday decisions, such as background music.
PwC explained that ticket sales, media rights and sponsorship are currently the main sources of revenue for teams and leagues. He expects tokenized tickets, NFT media rights and sponsorship of digital events or metaverses to propel industry growth, saying digital asset sales could also become a “serious” source of revenue. . The report adds that for this to happen, however, teams would need a technology stack that connects their new digital sales data to existing customer databases, and a strong legal team to handle regulatory and tax implications. .
These trends are all on the rise, especially as partnerships between NFT marketplaces and sports associations grow in popularity. Recently, the Solana NFT Magic Eden marketplace announced an upcoming NFT collection in collaboration with Overtime, the sports entertainment platform, to enhance fan engagement during the 2022 NCAA Men’s Basketball Tournament.
