Digital assets can fundamentally alter how fans interact with their favorite teams and athletes, as there will be more ways to “meaningfully connect” than ever before, according to a report from PricewaterhouseCoopers (PwC).
- Digital assets can also provide a significant revenue opportunity for sports organizations. Ticket sales, media rights and sponsorship are the three largest revenue streams for teams and leagues, PwC said.
- All three streams could see notable growth with tokenized tickets, non-fungible-token (NFT) media rights and sponsorship of digital or metaverse events, the report added.
- NFTs are digital asserts on a blockchain that represent ownership of virtual or physical items. Collectible NFTs and season ticket member tokens are evolutions and enhancements of traditional loyalty programs, but combining the metaverse with digital assets (both fungible tokens and NFTs) enables a whole new market for more fan segments, the report said.
- Digital assets sales could become a major revenue stream for many teams and leagues in the next five years, the report noted.
- The ability to build digital asset infrastructure will be the biggest challenge for the teams, and they will need sophisticated technology to connect the digital sales data with existing customer bases, it added.
- It is also essential that organizations anticipate and mitigate legal risk and tax implications from digital assets, PwC said.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.