Non-fungible-tokens have taken the sports industry by storm, and these digital assets are one of the ten major trends within the sports industry, according to a recent report by PwC Sports Outlook 2022.
NFTs are digital assets that can be used to sell collectible, authenticated, limited-edition digital content. In the sports world, there are thousands of sports NFTs that can be bought and sold on platforms such as OpenSea, a secondary market for digital assets. The company in its 2022 outlook report highlighted all the use cases of NFTs in the sport industry. The first one is: NFT based trading cards.
According to PwC, NFT trading cards are licensed by leagues, teams or individual athletes. For sports organizations that are serious about digital assets, collectible NFTs are a good opportunity. “Trading cards have been popular for decades and with multiple 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 of Sport NFTs is season ticket member (STM) pass. STM is a tokenised pass that could elevate the experience of a loyal fan. Tokenised means that the ownership of the pass is recorded on the blockchain distributed database, meaning that it cannot be altered. For instance, users who buy STMs will have access to special content, stadium experiences and could also receive NFTs for the games they attend. Moreover, these NFTs can also be traded later.
The last use case that PwC listed in its annual report is the emergence of virtual access tokens into the world of metaverse. According to PwC, fans who prefer to pay more for a virtual experience and may not be able to attend games in person, are expected to utilize the potential of virtual access of tokens powered by NFTs. “NFTs could give owners access to more behind-the-scenes perks such as player cams, bench cams or even virtual locker-room access. ”
The company expects that tokenized tickets, NFT media rights and sponsorship of digital or metaverse events to propel the growth of the industry, stating that digital asset sales might also become a “serious” revenue stream. The report added that in order to make this happen, teams would need a tech stack that connects their new digital sales data with existing customer databases, and a strong legal team to handle regulatory and tax implications.
“Much like NFTs, the regulatory landscape surrounding blockchain technology is evolving. This industry has always responded well to shifts in customer behavior, and Web3 is almost certainly going to be a major one. Teams should prepare for a sports world that is about to embark on a reimagination of so much of how fans consume sports,” the company added.
Forget a simple majority — OpenSea, one of the largest online NFT marketplaces — announced this week that a solid 80 percent of the NFTs minted through its free creation tool are spam, scams, or otherwise fraudulent.
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