According to the Sports Outlook 2022 report for the North American market by consultancy Price Waterhouse Coopers (PwC), digital assets and NFTs are predicted to be one of the ten major trends in the sports industry.
Thanks to the ability to replace the technological infrastructure that sports fans interact with, the report analyzes 3 key use cases for NFTs and their ability to shape the future of sport.
The first use case is to create a collection – the assets used to sell limited edition digital content that can be collected and authenticated. This means that trading cards (e.g. Baseball cards) and ticket stalks of historical matches can be digitized, minted and traded on the blockchain. These collections can be displayed and shared on Metaverse.
The best example for the NFTs collection is nba top shot from Dapper Labs. NFT's NBA Top Shot represents moments in basketball history in the form of a short video. In 2021, Dapper Labs raked in nearly $827 million, indicating that this is a project that could certainly grow further in the future. Another common example is Autograph, the NFT collectible market founded by legendary NFL quarterback Tom Brady, which has just raised $170 million in a Series B funding round.
Second, NFTs are for members who purchase seasonal tickets called STMs, another important use case. By providing membership tickets with verified encryption tags, loyal fans will have a better experience. STMs that are accustomed to receiving exclusive content and unique stadium experiences can also earn limited edition collection NFTs for the games they attend. Sponsors can also benefit if the teams they support allow them to ensure that customers who lose their real tickets won't lose any further benefits.
Finally, tokens with digital access are predicted to be in high demand in fans who want to pay more for a virtual experience where they are not directly involved in the game. This privileged token, known as the "new season ticket form," can give owners access to more behind-the-scenes gadgets such as players' cameras, bench cameras, and even access to virtual locker rooms. Paris Saint-Germain and Manchester City are two football clubs that have been successful with their fans, allowing fans to have a say in non-strategic decisions on game day, such as promenade music.
PwC said ticket sales, media rights and sponsorships were now the most profitable sources of revenue for teams and leagues. As a result, they hope that once tickets are encrypted, media activities and sponsorship of digital events are likely to become a significant source of revenue. However, according to the report the groups will require the technology base to combine their new digital sales data with the old customer database, as well as a competent legal team to address regulatory and tax issues.
These trends are on the rise, especially as partnerships between NFT markets and sports bodies become increasingly popular. Magic Eden, solana's NFT marketplace, has unveiled a new NFT collection in conjunction with Overtime, a sports entertainment platform, aimed at enhancing fan interaction during the NCAA men's basketball championships in 2022.
