PwC lists tokenized tickets, NFT media rights, and the sponsorship of digital or metaverse events as a catalyst for rapid industry growth. The report says the three primary use cases for NFTs will alter sports technology infrastructure and drive fan engagement.
A new report by PriceWaterhouseCoopers (PwC) says non-fungible tokens (NFTs) are the future of digital assets in sports. According to the report dubbed Sports Outlook 2022, NFTs can fundamentally alter how fans consume sports and interact with their favorite teams.
Citing different factors such as changing sports technology infrastructure to driving fan engagement, the report pointed out three prominent use cases for NFTs in the sporting industry. The first among them is NFTs, referring to the platforms that sell collectible, authenticated, and limited-edition digital content, most of which have already been adopted in mainstream sports.
Among the most successful ones include NBA Top Shot by Dapper Labs
The report specifically mentioned digitization, minting, and trading of players’ trading cards – such as the ones fronted by Paris-based Sorare – match tickets and other materials that can be placed on the blockchain and have the potential to be shared across the metaverse. Among the most successful ones include NBA Top Shot by Dapper Labs.
Season Ticket Member (STM) NFTs are another essential use case. They provide season ticket members with verified tokenized passes that would elevate the experience of an already loyal fan. STMs used to have access to additional unique content, and stadium experiences could also receive special edition collectible NFTs for the games they attended. And sponsors could benefit too if the teams they sponsor enable them to ensure those customers who lose their physical tickets wouldn’t lose any added benefits.
Finally, virtual access tokens are meant for fans that prefer paying a premium fee for a virtual experience but may not wish to attend games in person, which are expected to be in demand. Described as a new version of season tickets, virtual access tokens will give owners more behind-the-scenes perks such as player cams, bench cams, or even virtual locker-room access.
Tokenized tickets and NFT media rights to propel the industry’s growth
Paris-based Saint Germain and Manchester City are among the leading soccer clubs that have had a successful experience with their fan tokens that have the right to influence non-strategic game-day decisions, such as walk-up music. With interest in the metaverse and related spaces spiking to new highs, these virtual tokens would become much more in demand.
As per the PwC report, ticket sales, sponsorships, and media rights are the most significant revenue streams for the teams and the leagues. It also expects tokenized tickets and NFT media rights to propel the industry’s growth, saying that digital asset sales could also become a huge revenue stream. The report added that for this to happen, the teams would need a tech stack that connects their new digital sales data with the existing customer database and a strong legal team to handle all the tax rules.
Tom is a freelance writer with over 10-years’ experience in content creation, blog writing, and SEO specializing in the blockchain and cryptocurrency niche. As a philosophical figurehead, he believes that to make our world a better place, we must invest in incorruptible products and procedures, of which Bitcoin and other cryptocurrencies are leading examples.