More and more big companies are participating in the blockchain industry, such as McDonald’s, Burger King, Louis Vuitton, Nike or Starbucks, which brings us some interesting news about blockchain.
In its April 2022 report, Deloitte identified the NFT as the next revolution in the sports industry. This could be the bridge to an exclusive experience for every fan and supporter. In addition, NFT technology can be a new opportunity to generate revenue for any type of sport and athletes around the world.
1. Fragmentation of NFT – ticket resale, co-ownership, etc.
There is a new emerging project in NFT where you can decompose a complete NFT into segments. These pieces are then available for people to invest in and own. So allowing people to co-own individual NFT makes it easier for people to invest and own assets.
The same approach can be seen in the NFT world for tickets, memberships, etc. We could even witness better ticket resale values, and even more if they become available in the blockchain world.
People can have the opportunity to display these tickets as their Metaverse collectibles. They can also share them and even sell them. Fake or counterfeit tickets and pass tickets will not be a problem. Scams will slow down, and we may see a more seamless connection with fans.
2. The possibility of integrating physical and digital VR/AR
Virtual reality and augmented reality are two prominent aspects of the metaverse. Many athletes have begun to roll out some form of NFT and endorse others. Either way, NFT’s highest quality allows owners to experience VR/AR events, sports and more.
Digital concerts have been successful for the music industry in the past. The same goes for the sports industry. Digital parties, virtual reality events and sports may be the new frontiers. And that’s easier to do with blockchain technology.
3. Launch NFT and cryptocurrency in the metaverse.
Eventually, we may look at various NFT and blockchain projects. Sports bodies or teams can release their unique NFT almost like a commodity. There could be cryptocurrencies for different sports for people to invest in and own. It can blow out of proportion or turn into something profitable.
All this has laid the foundation for new revenue generation. From successful NFT to integrated cryptocurrencies, a whole new untapped dimension awaits the sports industry.
4. Build a stronger connection with your fans
People like NFT because it gives a sense of exclusivity. It is also a personal asset that you own, unique. These feelings can also be linked to the sports industry. If the NFT offered is complete, and if athletes and teams manage to provide an exclusive experience for fans, it will bridge the connection.
A good example is through YouTube NFT. They plan to make it easier for creators to reward or connect with fans through NFT. The sports industry and teams can do the same.
Potential Challenges
Either way, if the right approach is taken, the Sports NFT world or the sports blockchain industry could grow into at least a $2 billion industry. But it poses a number of challenges:
The tax code needs to be strengthened and restructured. Especially since there are no clear guidelines for generating revenue via blockchain or NFT. Similarly, the economic balance between tokens and NFT in the digital world will require in-depth analysis and proper planning. For unskilled athletes, there will be struggles. Either way, blockchain and NFT education will be key.
New prospects for NFT and blockchain
There are countless reasons why sports are turning to the NFT. These are becoming popular and many people in the digital world can enjoy sports. All they need is the right assets, utilities and access.
There is little demand for advertising and other activities. By adopting the hype train of NFT and blockchain, activities will be made easier. In the future, collaborations with various NFT projects, such as how we work with Web 2 games and websites, could lead to huge breakthroughs.
Conclusions – iGaming, GameFi et al
There are a number of sports-related NFT projects, particularly in the horse racing sector, under development in the Meta. If the sports industry can offer real-world connectivity and more value faster, the metagames may change forever.
It will open up prospects for iGaming, the gamification of various NFT’s, and the potential growth of GameFi sports programs. All of this could lead to attracting lucrative opportunities.
The importance of Web 3.0 as a new frontier. No matter how much we deny it or try to hinder it, it will expand, just as Web 2.0 did.
