Sports, as an industry, have realised the potential cryptocurrencies and blockchain technology could offer in terms of further monetising fan engagement, engaging sponsors, and engaging the global marketplace in ways unimaginable decades ago. One of these technological advances is Blockchain, which has introduced changes to underlying paradigms in traditional sports industries. Blockchain technologies can efficiently help sports teams to monetise their fanbases and enhance fan engagement without any effort. Sports, as an industry, has recognised the potential for Blockchain to revolutionise revenue streams and the fan experience, either by increasing cryptocurrency-based sponsorships, fan tokens, Non-fungible Tokens (NFTs), or even by bringing blockchain providers to the market.
The growth in fan tokens is part of a more profound acceptance by the sports industry of crypto. Far more famous players and former pros, like Paul Pogba and John Terry, are also pushing cryptocurrencies, trading platforms, and non-fungible tokens (NFTs), the controversial digital art form. Fans and investors can buy and exchange non-fungible tickets (NFTs) in the form of legally licensed game highlights videos on the websites owned by the National Basketball Association.
On Socios, a fan engagement platform, users can exchange tokens called Fan Tokens, which enable them to engage with their favourite pro sports teams. A Fan Engagement Token is a digital utility token fully fungible, which gives fans access to and influence specific decisions made by their favourite sports teams. Tokens can be used to access voting rights on polls, VIP rewards, exclusive promotions, AR-enabled features, chat forums, games, and contests.
Fan tokens can be traded for items, collectables, and unforgettable experiences for fans. With Fan Tokens, fans and sports enthusiasts unintentionally feel more connected with their teams, even from far away. Today, domestically and internationally, several famous clubs and leagues are innovatively using fan tokens to monetise revenue and increase engagement amongst fan bases. These executives and others at significant clubs have said that tokens have helped increase engagement with fans, who are typically scattered around the globe.
Having a way to interact with fans in a time of lockdown is a boon to clubs and fans, said Giorgio Ricci, Chief Revenue Officer of Italian side Juventus. He launched their coin before the pandemic. Tim Mangnall, the chief executive of the sports cryptocurrency consulting firm, is now consulting leading clubs on how to roll out NFTs for their fans. Mangnall believes people need to stop considering NFTs as an investment opportunity. When approached correctly, they could be used by the sports world, particularly soccer clubs, to promote fan engagement.
As crypto companies seek access to a mass audience, some platforms spend hundreds of millions to sponsor sports teams, stadiums, and even leagues to attract new fans. Flush with cash from eager investors, many cryptocurrency brands are spending heavily to appeal to mass audiences via sports sponsorships and grassroots events.