A new PwC report says NFTs are the future of digital assets in sports as they can fundamentally alter how fans consume sports and interact with their favorite teams so let’s find out more in today’s latest crypto news.
Nonfungible tokens or NFTs and digital assets are one of the ten major trends in the sports industry according to a PwC report, Sports Outlook 2022. From altering sports technology infrastructure to boosting fan engagement the report listed three main use cases for NFTs and their chances of reshaping the future of sports.
The first use case is a collectible NFT which represents an asset used to sell collectibles and limited edition digital content. This often refers to memorabilia like trading cards of players or tickets of stubs or historic matches that can be digitized and then traded on the blockchain. The report also added that the collections can be displayable and then shared on the metaverse.
The best example of a collectible NFT collection is the NBA top shot from DApper Labs. The marketplace tokenized top shots of the best plays from the NBA history and ranked second place right aFter Axie Ifnintiy for most NFT transactions in the blockchain gaming industry with $827 million in 2021. Another popular example is the retired NFT quarterback Tom Brady’s NFT collectible marekt Autograph that raised $170 million in Seris B funding.
The season ticket member or STM NFT can be considered another big use case. It provides season tickets with a verified tokenized pass that can elevate the experience of the fans. STMs used to have access to tokenized special content can also receive special edition collectible NFTs for games they will attend. The sponsors can benefit as well if they team up with the clubs and enable them to ensure customers who lose their physical tickets will not lose any added benefits.
The virtual access tokens for fans who prefer to pay more for a virtual experience and could not be able to attend games in person are also expected to be in demand. The new version of a season ticket, virtual asset tokens can give owners access to more behind-the-scenes perks like player cams and beach cams.
PwC explained that ticket sales, sponsorships, and media rights are the biggest revenue streams for the teams and the leagues. It also expects tokenized tickets and NFT media rights to propel the growth of the industry, saying that digital asset sales could also become a huge revenue stream. The report added that in order for this to happen, the teams will need a tech stack whcih connects their new digital sales data with the existing customer database and a strong legal team to handle all the tax rules.