Every day, we wake up to find a new enterprise acknowledging the potential of blockchain technology. Some giants, like McDonald’s, Burger King, Luis Vuitton, Nike, or Starbucks, bring us some fascinating news about the blockchain.
Now, in their report of April 2022, Deloitte has recognized NFTs as the next revolution in the sports industry. That could be the bridge to provide each fan with a more intimate and exclusive experience. Furthermore, NFTs could turn into a new opportunity of generating revenue for any kind of sports worldwide, along with the athletes.
Let’s take a better look:
There is a new, emerging trend in NFTs where you break down a full NFT into fragments. These fragments are then available for people to invest and own. Thus, allowing people to co-own a single NFT, making it easier for people to invest and own assets.
The same approach could also be seen in the NFT world for tickets, memberships, and more. We could even witness a better resale value for tickets and more if they are available in the blockchain world.
People could have a chance to showcase these tickets as their Metaverse collectibles. They could also share them or even sell them. There won’t be a problem with fake or counterfeit tickets and passes. The scams would slow down, and we could be looking at more seamless connectivity to the fans.
Virtual Reality and Augmented Reality are two prominent aspects of the Metaverse. Many athletes have already started launching some form of NFTs and endorsing others. Either way, the supreme quality of NFTs could allow owners to experience VR/AR events, sports, and more.
Digital concerts have been successful in the past for the music industry. The same could be said for the sports industry. Digital meetups, virtual reality events, and sports could be the new frontier. And these are easier to achieve with blockchain technology.
Ultimately, we could be looking at various NFT and blockchain projects. Sports Agencies, or Teams, could release their unique NFTs, almost like the merchandise. There could be cryptocurrencies for different sports for people to invest and own. It could blow out of proportion or turn into something lucrative.
This all proposes a foundation for new revenue generation. From successful NFTs to integrating cryptocurrencies, an entirely new untapped dimension awaits the sports industry.
People love NFTs because it gives a feeling of being exclusive. It is also a personal asset that you own, one-of-a-kind. These feelings can also connect to the sports industry. If the NFTs provided are complete, and if the athletes and teams manage to deliver an exclusive experience to the fans, it will bridge the connection.
An excellent example of it would be through YouTube NFTs. They plan on making it easier for the creators to reward or connect with their fans through the NFTs. The same could be integrated for the sports industry and teams.
Either way, Deloitte predicts that the Sports NFT world, or the Sports Blockchain industry, could grow to be at least a $2 billion industry if the right approach is taken. However, it comes with an array of challenges:
- The tax regulations would need to be reinforced and restructured. Especially since there aren’t clear guidelines for revenue generation through blockchain or NFTs.
- Similarly, the economic balance in the digital world for tokens and NFTs will need in-depth analysis and proper planning.
- There will be struggles for non-tech-savvy athletes. Either way, education on blockchain and NFT would be pivotal.
There are countless reasons for sports to move towards NFTs. These are becoming popular, and many people in the digital world can enjoy sports. All they need is the right kind of assets, utility, and access.
There won’t be much need for advertisements and other campaigns. By employing the hype train of the NFT and blockchain, campaigns will become easier. In the future, tie-ups with various NFT projects, like how we tie up with Web 2 games and websites, could lead to a massive breakthrough.
There are many sports-related NFT projects, especially in the Horse Racing department, that are under development in the Metaverse. If the Sports Industry could strive faster to provide real-world connectivity and something more worthwhile, the Metaverse could change for good.
It will open prospects for iGaming, Gamification of the various NFTs, and potential development of GameFi projects for the sports. All this could lead to attracting lucrative opportunities.
Deloitte also shares the importance of acknowledging Web 3.0 as the new frontier. It is here to stay, and regardless of how much we deny it or try to hinder it, it will expand, just like how Web 2.0 did.