The emergence of NFTs in the sports world was seen by some as a revolutionary new way for what is sometimes considered a conservative, old-fashioned sector to become more relevant in today’s digital landscape. But others were more suspicious of this new format. What cannot be argued is the impact it had on sports in general.
We have now become used to NFTs creating a greater role in mainstream society, as a generation used to dealing with digital artifacts became more involved in the way things are done. NFTs have become more attractive to consumers as they have become more used to their existence.
In the last five years or so, there have been two particularly important new aspects of the sports world. One was the easing of restrictions for online sports betting sites and the other was the introduction of blockchain technology, cryptocurrency, and digital assets, such as NFTs. But how did sports wake up to the 21st century?
Exploding into the Sports World
As with all things digital when it comes to sports, it may seem to outsiders that everything has happened very quickly. Sports has not always been the most forward-thinking sector of society in the past and the way that crypto and NFTs have become part of the conversation may have taken some by surprise.
The rise of digital culture has been a much more gradual process, of course. But the way that sports embraced assets like NFTs was remarkable. It was as though teams and players immediately saw the potential a few years ago and suddenly it was a big thing. Now the market has quietened down a little but there is still a lot of interest.
Club Tokens
Soccer clubs in Europe, in particular, have been very keen to get involved with NFTs. Companies such as Socios realized there was an immense amount of loyalty in the sports world – a relationship between fans and clubs that could be very profitable, while at the same time forging even stronger ties.
A number of top European soccer teams began schemes involving NFTs and there have also been some high-profile sponsorship deals between Socios and individual clubs. It is this brand awareness that is also important for NFTs to be considered legitimate in many eyes and having the name on a jersey is a positive move in that regard.
Fan Participation
The tokens system that NFT companies have incorporated into the business model of many sports organizations is a perfect example of how digital assets have been advertised as a way for fans to become more involved with their favorite teams. A more immersive experience is possible thanks to NFTs.
The practice can be different from team to team but in most cases, fans have been able to purchase NFTs to take greater control in the way the club is run. Tokens give the fans the opportunity to vote on club decisions as well as qualify for benefits, such as discounts for tickets and merchandise.
Collectibles and Memorabilia
NFTs have also transformed the sports memorabilia market. Collectibles have always been a major part of sports fandom and items such as baseball cards have been sold for huge amounts. There is an entire industry based on sports memorabilia and NFTs are just the modern version.
Just like a fan could buy a physical baseball card in the past, there is now the opportunity to purchase digital assets. These can then be traded in the same way. But there is a further opportunity with NFTs, in that they can act as athlete tokenization. Fans can now own a unique part of sporting history – and that market is huge.
Celebrity Endorsements
One major reason for the increased popularity of sports NFTs has been the involvement of some of the biggest athletes in the world. In the same way that crypto businesses across the sector have used high-profile names to increase brand awareness, sports athletes have been used to push sports NFTs.
The pieces of sporting history that we were talking about earlier have been very popular thanks to the athletes themselves being involved in the process. There has also been a crossover with athletes promoting other NFTs, giving the entire process more legitimacy for a wider audience.
NFT Challenges
Obviously, the relationship between sports and NFTs has sparked a lot of interest. There is a lot of excitement about what might happen next, as well as the realization that there is potential to become a very profitable business sector. But that is not to say that there are not challenges as well.
The environmental impact of blockchain technology has been an issue across the board in recent years, as those involved look to become more sustainable. There is also still a level of distrust from the general public. Some high-profile relationships have failed dramatically and NFT devotees will need to ensure that the positives get the same kind of exposure.
The Future of NFTs and Sports
There does seem to be the potential for a very bright future for sports and NFTs. But, as with any new and emerging phenomena, there will still be a settling down period after the initial rush of excitement. This is only natural and is a process that needs to be followed for development to occur.
There is still a lack of knowledge about NFTs and crypto in general and that will need to change for it to be successful on a wider scale. Experts agree that there is the potential for a large market with sports NFTs – we will see how much closer to that we get in the coming years.
