Impact Of NFTs In Sports Industry And How Are NFTs Being Used In Sports?

Sports NFTs (non-fungible tokens) allow sports fans to collect digital trading cards, virtual memorabilia, and other items. However, they are a rapidly expanding market segment for NFTs.

What are Sports NFTs?

Sports NFTs are blockchain-based digital assets that are verifiably one-of-a-kind and are used to represent digital trading cards, sporting events, and digital memorabilia. However, other kinds of sports-related items. In addition to giving fans a new way to interact with their favorite teams and athletes. Although, the issuance of sports NFTs gives athletes, clubs, and sports brands a new avenue for monetization.

Many fans are willing to spend a lot of money to acquire limited edition virtual memorabilia of their favorite baseball player or basketball team, for instance. Because of this, sports NFTs frequently trade for tens of thousands of dollars (or more), and some of the rarest items now have significantly higher values.

Where can you buy sports NFTs?

Sports NFTs can be purchased in a variety of markets. Some of the busiest NFT marketplaces for items related to sports are:

• OpenSea
• Autograph
• Rarible

Why are sports fans drawn to NFTs?

The use of NFTs is intended to promote deeper interactions between fan clubs. Virtual collectibles or player cards enable fans to get together and trade stickers featuring special highlights from their favorite athletes. These cards come in a variety of rarities, some of which have a price tag of $1,000. That thrills fans, as it has done for decades in a physical setting, and they are delighted to purchase expensive sports player trading cards.

Using NBA Top Shot by Dapper Labs as an example, the lowest asking price for Ja Morant’s dunk series 1 is $475,000 on this platform’s NFT marketplace. Lebron James exceeded his record-breaking 32 with $535,000. The price tag on Derrick Rose’s storied 59 is currently $1 million.

Leading NFT Sports Card Brands

A few sports NFT brands have emerged to capture the majority of the sports NFT market in addition to well-known athletes, like Rob Gronkowski, releasing collections that make headlines.

• NBA Topshot
• NFL All-Day
• UFC Strike
•  Sorare

Also Read: Explained: What is Physical NFT?

What Are the Benefits of NFTs to the Sports Industry?

NFTs transform the idea of sports memorabilia by enabling fans to own the cards of their favorite players and even game videos. They give sports organizations the chance to build enduring bonds with their supporters.

The way sports organizations interact with their fans is also changed by NFTs. Teams can increase fan engagement by giving members special benefits and occasionally even a way to have a say in key governance decisions.

Sports Leagues Have a New Source of Revenue

Sports teams may receive additional income if they issue non-fungible tokens. Traditionally, the primary sources of revenue for a sports business have been ticket and merchandise sales, media rights, and sponsorships. Even in the midst of a pandemic, teams can use NFTs to tokenize game tickets, stream live games to token holders, or plan holder-only events in the metaverse.

Athletes’ Individual Branding

To interact with their fan base, athletes can launch their own NFT collections. In a manner akin to trading cards, athlete NFTs foster a relationship between the player and their ardent fans. Fans can display mementos of their favorite players on social media, for instance, to display their team colors.

Additionally, by issuing non-fungible tokens on their own, athletes can protect their intellectual property rights. As NFT creators, they are entitled to royalties from the sales of their NFTs, which could provide them with a comfortable cushion and wealth for retirement.

Top 5 most expensive NFTs in Sports

• LeBron James Statue — $35 million
• MLB Champions Brett Gardner — $21.28 million
• Jermall Charlo Lions Only GOLD ULTIMATE — $19.1 million
• Michael Jordan SportPunk — $5.06 million
• Rare Diego Maradona 2020-21 — $4.3 million

Conclusion

Recently, there has been an increase in the number of non-fungible token applications in the sports sector, and this trend is likely to continue. Digital assets give organizations new opportunities to interact with their devoted fans and open up fresh revenue streams. Even though unique badges are still enjoyed by sports fans to own, trade, and wear, NFT sports use cases today go far beyond digital collectibles.

Also Read: NFT Avatars: Why Are NFT Avatars So Popular And What To Expect In 2023