Non-fungible tokens have taken over the sports industry, and this digital asset is one of ten major trends in the sports industry, according to a recent report by PwC Sports Outlook 2022.
NFTs are digital assets that can be used to sell limited edition, authenticated, and collectible digital content. In the world of sports, there are thousands of sports NFTs that can be bought and sold on platforms like OpenSea, which is a secondary market for digital assets. The company in its 2022 outlook report highlights all use cases of NFTs in the sports industry. The first is: NFT-based trading cards.
According to PwC, NFT trading cards are licensed by leagues, teams or individual athletes. For organizations that are serious about digital assets, collectible NFTs are a good opportunity. “Trading cards have been popular for decades and with many organizations already collaborating with NFT companies to build their own digital trading cards, this is more than just a passing fad,” PwC wrote in its 2022 report.
Another use case for Sport NFTs is the Season Ticket (STM) membership card. STM is a token that can elevate a loyal fan’s experience. The token indicates that the card’s ownership is recorded on the distributed blockchain database, which means that it cannot be changed. For example, users who purchase an STM will have access to special content and stadium experiences and can also receive NFTs for the games they attend. Moreover, NFTs can also be traded at a later time.
A recent use case that PwC included in its annual report is the emergence of virtual access tokens in the metaverse. According to PwC, fans who prefer to pay more for a virtual experience and may not be able to attend games in person will be expected to take advantage of virtual access to tokens powered by NFTs. “NFTs can give owners access to more behind-the-scenes perks such as operator cams, bench cams or even access to a virtual locker room.”
The company expects premium tickets, NFT media rights, and sponsorship of digital or metaverse events to drive industry growth, noting that sales of digital assets could also become a “serious” source of income. In order to achieve this, the teams will need a technical suite that links their new digital sales data to existing customer databases, and a strong legal team to deal with regulatory and tax implications, the report added.
“Just like NFTs, the regulatory landscape surrounding blockchain technology is evolving. The industry has always responded well to shifts in customer behavior, and Web3 is almost certainly going to be a major one. Teams must prepare for a sports world that is about to begin to reimagine much of how fans consume for sport,” the company added.
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