Price Waterhouse Coopers report about NFTs in the sports business
According to Price Waterhouse Coopers’ (PwC) Sports Outlook 2022 report, nonfungible tokens, or NFTs, and digital assets are one of the ten key innovations in the sports sector.
The report says that digital assets have the potential to drastically alter how sports fans consume content and connect with their favorite teams. The study examines three key use cases for NFTs, spanning from modifying sports technology infrastructure to encouraging fan interaction, as well as their potential to influence sports’ future.
Collectible NFTs are one of the use cases, which are digital assets that are authenticated, collectible, and limited-edition. This refers to traditional memorabilia that can be digitized, minted, and traded on the blockchain, such as player trading cards or ticket stubs from historic matches. These collectibles might someday be displayed and exchanged throughout metaverses, according to the report.
There are many sports NFTs available for purchase and sale on NFT marketplaces. Collectible NFTs, which are often licensed by leagues, teams, or individual athletes, are essentially digital trading cards. Collectible NFTs are a terrific option for sports companies who are serious about digital assets, the report says.
Season ticket members, or STMs, are another important use case for NFTs. STM NFTs are a guaranteed ticket to any unique content a team can concoct. This could include unique VIP areas of the venue, concession stand discounts, or other customary season ticket privileges — all with complete trust in their validity.
Season tickets that are tokenized, on the other hand, allow organizations to go even further. STMs will most likely receive limited-edition collectible NFTs for the games they attend soon. STMs should expect these to be a common part of their membership in a few years, and they’ll want distinctive tokens to show off their fandom.
Finally, virtual access tokens are predicted to be in high demand among fans who choose to pay more for a virtual experience or who may not be able to attend games in person. Virtual access tokens dubbed a “new form of season tickets,” may allow owners access to more behind-the-scenes amenities like player cams, bench cameras, and even virtual locker-room access. Paris Saint-Germain and Manchester City are two soccer clubs that have had success with their fan tokens, allowing fans to have a say in non-strategic game-day decisions like walk-up music.
Ticket sales, media rights, and sponsorship are currently the most lucrative revenue streams for teams and leagues, according to PwC. It predicts that tokenized tickets, NFT media rights, and sponsorship of digital or metaverse events will drive the industry’s growth, with digital asset sales potentially becoming a “significant” revenue stream as well. The report argues that however, teams would require a tech stack that combines their new digital sales data with current customer databases, as well as a competent legal team to address regulatory and tax considerations.
All these tendencies are on the rise, especially as the popularity of collaborations between NFT marketplaces and sports bodies grows.
NFT Labs is a web3 company exploring big ideas in community, utility and engagement to push the crypto, NFT and metaverse space forward. To learn how your organization can participate in the web3 revolution, write to us at email@example.com.
We’re backed by leading blockchain institutions including Longhash Ventures, Antler, Oracles Investment Group, and Shima Capital among others. NFT Labs is also the issuer of the MYNE token ($MYNE), a BEP-20 utility token for Itsmyne and partner applications. MYNE serves as the gateway between traditional social media and blockchain-based social economies.