Non-fungible tokens have taken the sports industry by storm, and these digital assets are one of the top ten trends in the sports industry, according to a recent PwC Sports Outlook 2022 report.
NFTs are digital assets that can be used to sell collectible, authenticated, and limited-edition digital content. In the world of sports, 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 for NFTs in the sports industry. The first is: NFT-based trading cards.
According to PwC, NFT trading cards are licensed by leagues, teams or individual athletes. For sports organizations that take digital assets seriously, collectible NFTs are a good opportunity. “Trading cards have been popular for decades and with several organizations already collaborating with NFT companies to create their own digital trading cards, it’s more than just a passing fad,” PwC wrote in its 2022 report. .
Another use case for Sports NFT is the Season Member Pass (STM). STM is a token pass that could enhance a loyal fan’s experience. Tokenized means ownership of the pass is recorded on the blockchain’s distributed database, which means it cannot be changed. For example, users who purchase STMs will get access to special content, stadium experiences, and could also receive NFTs for matches they attend. Moreover, these NFTs can also be traded later.
The final use case that PwC listed in its annual report is the emergence of virtual access tokens in the metaverse world. According to PwC, fans who prefer to pay more for a virtual experience and who may not be able to attend matches in person should utilize the virtual access potential of NFT-powered tokens. “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 tokenized tickets, NFT media rights, and sponsorship of digital events or metaverses to propel industry growth, saying digital asset sales could also become a “serious source of revenue. “. The report adds that to achieve this, teams would need a technology stack that connects their new digital sales data to existing customer databases, and a strong legal team to handle regulatory and tax implications.
“Like NFTs, the regulatory landscape surrounding blockchain technology is changing. This industry has always responded well to changes in customer behavior, and Web3 is sure to be a major one. Teams must prepare for a sports world that is about to embark on a reimagining of much of the way fans consume sports,” the company added.