How NFTs can boost fan engagement in the sports industry

NFT media rights, and sponsorship of digital or metaverse events could all lead to significant growth

How NFTs can boost fan engagement in the sports industry
Companies will also need to strike a balance between collectibility and utility in order to provide fans uniqueness and long-lasting value

It seems with the entry of non-fungible tockers has given sports are new way to engage with users as well as earn money. “Ticket sales, media rights, and sponsorship are the three most important revenue streams for teams and leagues in any sport. Tokenised tickets, NFT media rights, and sponsorship of digital or metaverse events could all lead to significant growth in all three,” Alok Joshi co-founder, CEO, Lepasa Metaverse Ecosystem told FE Digital Currency.

As per industry observers, engagement will be of many forms including watching or going to live games, buying things, or going to special events. “From selling video clips to auctioning souvenirs and from trading merchandise to offering contests, NFT platforms will help the sports industry to take its engagements with fans to a different level altogether,” Tushar Gandotra, founder, CEO, FiEx Global, added. For instance, national basketball league (NBA) which collaborated with Dapper Labs to launch the NFT marketplace in 2020, within a year it clocked revenue of more than $230 million. 

It is believed that a comprehensive change is seen in the way fans are engaging with their favourite sporting game. The focus of stakeholders are now more on the digital aspects of engagement and these changing priorities have boosted the prospects of the creator’s economy. For industry experts, one of the key challenge is to balance utility and collectibility to provide fans uniqueness and long-lasting value.”The NFT and esports market is growing at a rapid pace in India. The esports market is growing at a rate of 45% CAGR while the NFT market has seen a surge in trading volumes in over triple-digit percentages year-on-year. Hence, the future looks very bright for the NFT gaming space,” Parth Chadha, Co-Founder, CEO, STAN, said.

It is believed NFT has provided esports fans worldwide to engage in the form of tokens or cryptocurrencies to unlock access to VIP spaces, clubs, besides channels hosted by the leading esports teams and players. “NFTs will revolutionise traditional ticketing in sports be it single use, seasonal access, or virtual access tokens. NFT media rights, and sponsorship of digital or metaverse events could all lead to significant growth,” Joshi added. 

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