Ghana Latest Football News, Live Scores, Results - GHANAsoccernet

Ghana's No. 1

NFTs in Sports: What you Need to Know

Published on: 10 November 2021
NFTs in Sports: What you Need to Know
NFT Tokens

The digitization of sports has transformed the way brands, and their fan base connect. New technologies such as Non-Fungible Tokens (NFTs) and fan tokens is helping sports brand to create new avenue streams.

The covid-19 pandemic struck and closed the traditional revenue streams, but it accelerated the uptake of NFTs in sports.

In that regard, NFT development in sports has also skyrocketed as the arrival of NFTs is driving massive growth in the industry. NFTs have become the latest craze among brands, athletes, celebrities, and sports influencers, giving fans unmatched experiences.

Why NFTs and Sports are a Good Match 

For sports fans, particularly football, their justification for their devotion to their teams is simply in their word. And while it is, as they say, it still never delivers a logical answer to others who are not football fans. But NFTs emergence and its implementation in sports, now the fan base can back up the passion for their teams.

NFTs open up new levels for fans to participate and partake deeper into their favorite sports and at the same time get rewarded for their passion and loyalty. Blockchain—the technology behind the development of NFTs, provides a way to make something unique and scarce. This creates a new level of fan engagement.

This is enough incentive for fans to continue following their teams. In return, NFTs also create an avenue for fans to explore their earning potentials by using their knowledge of a sport.

How NFTs are Reshaping Sports

NFTs are changing the way people look at sports, including football, in many ways. They’re adding freshness, uniqueness, and new means of generating revenue. These new ways are more appealing to the industry players and fans alike. They include the following:

Enabling uniqueness in Digital Media

Today, technology enables the creation of sophisticated media and has also facilitated the commoditization of the same. However, this makes it easy for things to be replicated, replaced, or easily substituted by others. But with the advent of NFTs, creators can now apply the principle of scarcity to both analog and digital content.

For example, in football and other sports, its major application is in enabling the scarcity of video clips for special sporting moments. A fan can uniquely own a famous goal. Because NFTs come with a price, ownership, and number of copies available, it makes each link made to the video clip unique.

Sports Collectibles 

This carries a huge benefit for fans as it upgrades the traditional sports cards that have been there for years. These sports cards, when made into NFT sports collectibles, can sell at high prices. This is because, apart from scarcity, the value of the cards also comes from their intrinsic value. Meaning they have their own value.

Notably, when you acquire a sports NFT collectible of any kind, you get the ownership but not the copyright to it. As the owner, you can only display it as part of your collectibles but not generate revenue from it. The value of sports collectible, as with other NFTs, is based on how much a buyer wants to pay for it.

However, securing digital collectibles with NFTs lowers the risks associated with counterfeiting and copying significantly.

Facilitating Digital Ownership by Fans

While this may be unfamiliar for most sports fans, virtual currencies are increasingly being used to purchase video games and sports artifacts. This opens up a new avenue for investment into blockchain technology and cryptocurrencies. Football happens to be one of the sports with the largest fan bases of all sports. A combination of NFTs and football can be quite compelling.

That makes this an excellent time for exploring how to create and sell NFT in football. Currently, the most prominent digital collectible platform in football is Sorare, having signed more than 135 football clubs globally. This includes some Premier league teams.

Takeaway

The entry of NFTs in the sports industry has facilitated the creation of sports marketplaces for fans to engage more with their teams and favorite athletes. In the same line, it has opened doors for revenue streams that didn’t exist a few years ago. By looking at how NFTs and sports have married so seamlessly, it’s evident that the future still has more to offer. Either way, it seems like a win-win situation for the sports industry and sports fans alike.

This website uses cookies to ensure you get the best experience on our website.
Learn more