Up to 5 million fans will buy or receive a tokenized video or image next year.
Progressively all sports will integrate digital collectibles to encourage their fans.
The sports industry is transforming and the results will be visible in 2022. By then 5 billion fans around the world will own at least a limited edition video of some sensational feat or a unique card of their favorite player, such as Messi, for example. This is how the consulting firm Deloitte envisions the immediate future, that which goes hand in hand with non-fungible tokens (NFT) and their impact on the world of sports competitiveness.
The firm published a report in which its analysts detail how the sports industry is going digital with NFTs as the main flag, following in the footsteps of the art world, where the way of collecting and exhibiting works has changed.
This year, the Sorare platform, of collectible digital soccer cards registered on the Ethereum blockchain, averaged sales of $ 128 million in the first nine months of 2021. And the numbers will skyrocket over the next year as demand for sports NFTs will increase “Generating more than $ 2 billion in transactions in 2022, roughly double the figure in 2021,” the analysts say.
The report argues that demand for sports NFTs will increase because they are the digital equivalent of printed trading cards They sold for up to several million dollars each and have long been a major source of income for teams and leagues, especially in the US market.
For Deloitte, NFTs satisfy the same needs as physical trading cards, but with the added bonus of adding other elements that are attractive to fans, such as videos. In fact, he adds that the ‘most common and lucrative use case for NFTs in the sports industry probably will be the sale of limited edition video clips of sports moments«.
“The value of each NFT will depend on the prominence of the athlete, the importance of the event, any additional content included within each NFT, and the demand. An NFT limited to a single edit of a major event, for example a winning goal, home run, or dunk from a legendary star, along with a comment from that star, could be sold at auction, while the same video But without more content they would be sold and marketed through an online marketplace with 20,000 copies available ”.
Deloitte report on the impact of NFTs on the sports industry.
The format of sports video clips converted into NFT already exists and enjoys great popularity, as evidenced by the NBA Top Shop platform, an auction market for outstanding plays that take place on the court. For example, a cap by New Orleans Pelicans power forward Zion Williamson against the Nuggets in January 2020 sold for $ 250,000.
If you caught a great play, you will no longer post it on social media for everyone to see for free, now you want to convert it to NFT and market it. Its value will surely increase as demand grows.
Sports NFT fever will arrive in 2022
Taking into account that the scarcity of a digital collectible drives the inherent value in itself, Deloitte analysts hope that In 2022 the creators of NFT continue to test different ownership models. This with the idea of determining the optimal balance between fueling consumer demand and maintaining intellectual property rights, as the report points out.
On the other hand, analysts believe that most of the sports-related NFT activity in 2022 is likely to occur in the disciplines with the largest fan base, such as soccer, basketball or baseball. However, they do not rule out that eventually all adopt some use case of the NFT, Especially since collectible tokens can generate additional income for sports leagues, teams, and individual athletes whose income was affected by the long coronavirus quarantine.
Interest in sports NFTs has been fueled by activity in the broader market, as tokenized collectibles are deepening their relationship with soccer, baseball, and the NFL.
In regards to football, several players have launched their NFTs. In fact, last August, the Argentine footballer Lionel Messi presented his own digital collection called Messiverse.
As reported by CriptoNoticias, the world of soccer has also been integrating fan tokens, whose prices will rise in 2022. These tokens, which are named after sports teams, give their holders the possibility of participating in raffles, rewards , surveys and even being taken into account in some decisions of the club or the selected one.
Although their adoption has been wide among clubs, there has not yet been a rampant “rush” to acquire these coins, but everything seems to indicate that things will change next year for sports NFTs and fan tokens.