PwC report calls NFTs key future revenue stream for sports industry

NFTs are the key future revenue stream for the sports industry reports PwC

A recent report from PwC, one of the large four accounting firms, names non-fungible tokens (NFTs) “the future of digital assets at sports.”

According to the report tagged Sports Industry Outlook 2022, NFTs and digital assets will be one of the ten major trends across the industry in 2022.

PwC detects three key use cases around NFT’s “potential to shape fan experiences and enhance bottom lines.” The first and most apparent use case is collectible NFTs, which PwC represents as “trading cards for the digital world”. In the future, these collectibles may be exhibited and shared across the metaverse.

By digitizing traditional sports memorabilia such as trading cards, ticket stubs, or match highlights, sports organizations can build an ecosystem of exclusive edition digital content for their fans.

NBA Top Shot from Dapper Labs is a highly thriving example of a collectible NFT series. Its tokenizer highlights the NBA history and ranked second behind the play-to-earn game Axie Infinity for the entire value of NFT transactions within the blockchain gaming industry.

Another apparent use case is to convert season ticket passes to NFTs. Tokenised passes will take a new digital element to the engagement of fans with their clubs.

Fans can be awarded special collectible NFTs based on how many successive seasons they’ve held a season pass for, and the idea provides a whole host of ideas for sponsorships and branding partnerships.

As fans turn to more virtual means of experiencing their favorite sports, one last major use case can be found in virtual access tokens. Like the more digital season pass, virtual access can require NFT owners behind-the-scenes benefits such as player cam and virtual locker room access.

PwC noted that sponsorship, ticket sales, and media rights are currently the biggest revenue streams for most sports. However, it hopes that the sponsorship of Metaverse events, tokenized tickets and NFT media rights will all contribute to growth in the sports industry.

To make this a reality, the report said, it would need to recruit technical and legal teams familiar with blockchain programming and regulations.

Author

  • Vinayak Rajagopalan

    Hi, I'm Vinayak Rajagopalan, Blockchain Consultant at Dconn. I stumbled into blockchain when I was an undergrad and a friend of mine introduced me to Bitcoin. I've never left it since. The one thing that got me so intrigued by blockchain is that it is not a zero-sum game. Once I realized that, all I wanted to do was tell more people about this revolutionary technology. This is my way of doing that.

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