PwC says NFTs and digital assets will boost sports revenue
PwC foresees three major shifts in ticket sales, media rights, and sponsorships.
NFTs and digital assets will be at the center of fan engagement and sports industry revenue streams.
Metaverse and Web3 integration also holds huge promise for the industry, the firm said in a report.
NFTs have vast potential and are likely to become “the future of digital assets in sports,” Big Four auditor PwC has said in a new report.
The firm’s Sports Industry Outlook 2022 report highlights non-fungible tokens as one of the top ten trends that could significantly boost the sports sector.
According to PwC, the growth in NFTs and overall adoption of digital assets is a development likely to “shape fan experience” and boost revenue opportunities.
Per the report, collectible NFT sales, season ticket member NFTs and virtual access tokens are likely to play a big role in revolutionising fan engagement. But more than that, as is with ticket sales, media rights and sponsorships, the fast-growing NFT space could open up new revenue streams for teams and leagues.
“For sponsors, tokenization presents a great way to align themselves with a team or league and create unique activations that build equity for both brands,” the firm noted.
Sports organisations and teams can explore collectible NFTs, moving into tokenised tickets, team memorabilia and even match highlights.
These can become key collectible NFT series, with their sale and trading an avenue that can bring in new revenue on a level not seen before. The same concept could apply to season ticket members (STM) and virtual access tokens.
The metaverse and Web3 are also going to be major “shifts” in coming years, with growth around these seeing “a reimagination of so much of how fans consume sports.”
As teams and organisations look to integrate and benefit from this technology, PwC advises investments in the infrastructure and talent key to its realisation. It’s also important to work towards legal and tax compliance.
NFT sales amounted to over $17.7 billion in 2021, growing two hundredfold from a total of about $8.5 million in 2020. Profits from reselling and buying also increased exponentially, reaching over $5.4 billion in 2021 from $12 million a year earlier.