PwC report calls NFT ‘the future of digital assets in sports’

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According to a report by consulting firm Price Waterhouse Coopers’ or PwC, Sports Outlook 2022 for North America, unusable tokens, or NFTs and digital assets are one of ten major trends in the sports industry. sports. From transforming sports technology infrastructure to driving fan engagement, the report lists three key use cases for NFT and its ability to shape the future of sport.

The first use case is collectible NFT – the asset used to sell limited edition, authenticated, and collectible digital content. This refers to traditional memorabilia such as player trading cards or ticket stubs of historic matches that can be digitized, minted and traded on the blockchain. The report adds that these collections could eventually be displayed and shared across metaverses.

The “most famous” example of a collectible NFT collection is the NBA Top Shot from Dapper Labs. Crypto Market Highlights or the “best” play in NBA history and was recently ranked second, behind the Axie Infinity game, for most NFT transactions in blockchain game industry with $827 million dollars in 2021. Another popular example is the NFT Collectible Market Signature of Tom Brady, retired NFL quarterback, recently raised $170 million in Series B . funding.

Second, season ticket membership, or STM, NFT can be seen as another big use case. Providing season-ticket members with verified tokenized tokens enhances the experience of a loyal fan. STMs that once had access to additional special content and stadium experiences can also receive special edition collectible NFTs for the games they attend. And sponsors could also benefit if the teams they sponsor allow them to ensure customers who lose their physical tickets don’t lose any additional benefits.

Finally, virtual access tokens for fans who prefer to pay more for a virtual experience and may not be able to attend the game in person, is expected to be in demand. Described as a new version of the season ticket, the virtual access token could give holders access to more behind-the-scenes perks like player cams, bench cams or even even access to a virtual dressing room. Several football clubs had success to date with their fan tokens are Paris Saint-Germain and Manchester City, who allow fans to influence non-strategic decisions on game day, such as like instrumental music.

PwC explains that ticket sales, media rights and sponsorships are the current biggest sources of revenue for teams and leagues. It hopes that tokenized tickets, NFT media rights, and sponsorship of digital or metaverse events will spur industry growth, while stating that selling digital assets can also become a reality. into a “serious” source of revenue. The report adds that for this to happen, however, teams will need a technology system that connects their new digital sales data to existing customer databases and a strong legal team. powerful to deal with tax and regulatory impacts.

All of these trends are accelerating, especially as partnerships between NFT marketplaces and sports associations grow in popularity. Recently, the Solana NFT market Magic Eden announced an upcoming NFT collection in partnership with Overtimesports entertainment platform, to enhance fan interaction during the 2022 NCAA men’s basketball tournament.