According to the PwC report, NFT is the future of the digital asset market for sports.
What’s the future of NFT?
According to a report by consulting firm Price Waterhouse Coopers (PwC), NFTs are one of the top ten trends in the sports industry. The document lists their use cases.
The first is collectable NFTs related to sports gadgets (e.g. trading cards or tickets from historical matches, which can be digitized today).
The most famous example of the NFT collector’s collection is NBA Top Shot from Dapper Labs. It’s about tokenized clips showing the most important events in the history of the NBA.
In addition, there are season tickets for matches, which are also associated with the NFT. Their owners can receive special NFT collector’s editions from clubs for the events in which they participate.
Finally, the market is expected to create a demand for digital tokens for fans who prefer to pay for “virtual experiences” because they cannot attend matches in person at stadiums. The report describes this as a new form of ticketing – virtual tokens that can give owners access to more experiences. With the help of VR, it will be possible to access the view from cameras mounted, for example, in cloakrooms or behind the scenes of sports facilities.
Some football clubs that have been successful so far with their fan tokens include Paris Saint-Germain and Manchester City. Their NFTs give fans the right to influence some of the decisions the club’s management has previously made – such as what kind of music the band will play to cheer up players and fans.
New sources of income
PwC explained that ticket sales, media rights and sponsorship are currently the biggest sources of revenue for teams and leagues. Tokenized tickets, media rights associated with NFT, and sponsorship of digital events, or metaverse technology are expected to drive the industry’s growth. It added that the sale of digital assets could also become a “serious” revenue stream for athletes. However, the report also says that for this to happen, teams will need technologies that connect digital sales to existing customer databases, and a legal team that will address the regulatory and tax implications associated with the topic.