Sports NFTs offer teams, leagues guidance
A recent study by the National Research Group surveyed 3,250 sports fans from the US, UK, Brazil and Japan, and the findings may help teams, leagues and even athletes understand how to shape their NFT offerings. The study found that while two-thirds of sports fans prefer a tangible object in their hand, 64% of fans are open to the idea of learning more about NFTs and would “consider” purchasing one in the future. In fact, one in three (34%) sports fans say they have already bought cryptocurrency or an NFT, according to a separate study released this spring by Seton Hall University.
Of sports fans surveyed by the National Research Group, the top reasons for using NFTs were:
- a way to make money (72%)
- an investment vehicle (42%), and
- the opportunity to own something that was limited edition and considered rare (30%).
Leading the study was Jay Kaufman, EVP and Chief Sports Officer at NRG who previously worked as SVP of Global Research and Insights at the NBA. “Ultimately, the long-term value of individual NFTs will be driven by their utility more than their aesthetics. Fans will gravitate towards NFT collections that can act as gateways to unique experiences either in the real world, in online metaverse platforms or in their favorite video game,” Kaufman writes in NRGs The new collectibles report.
Sports NFT’s offer must address safety, education
Sports industry stakeholders need to address the idea fans have that NFTs are risky investment opportunities 84% think there should be more rules around buying and selling NFTs than there are today. That figure is comparable to OpenSea’s admission in January that 80% of NFTs created for free on their marketplace were plagiarized works or fake collections.
Notable NFT scams in the sports industry have included FC Barcelona’s decision last year to suspend cooperation with NFT marketplace Ownix after a consultant for the company was arrested for crypto-related fraud while the NBA star De’Aaron Fox abruptly shut down his NFT project, leaving investors frustrated after spending roughly $1.5 million on tokens. Another NBA player Michael Carter-Williams has been criticized for a similar arrangement.
Education about exactly what NFTs are will also be critical, as there exists a disconnect between how much people think they know about the technology and what they actually know. The study found that 58% of sports fans feel they have at least “some” understanding of NFTs. But according to the same study, nearly half of sports fans (49%) were unable to provide the correct definition of “NFTs.”
An important opportunity: Almost half (46%) of sports fans said they would be more likely to attend a sporting event if they received a commemorative NFT for their attendance, which both NFL and MLB have started doing. For American fans in particular, interest in sports-related NFTs is particularly high for those who follow NBA, WNBA, PGA Tour, UFCFormula 1 and NASCAR.
Candy Digital’s Scott Lawin: Connecting NFTs with in-stadium benefits, physical fan experiences
To help capitalize on fan enthusiasm, NRG’s report highlights the following NFT benefits that fan collectors will be most excited about:
- It allows them to meet or interact with current or former players.
- They get access to sitting in a certain area, benefits at the stadium such as shorter lines or discounts on concessions, and
- They gain access to rewatch a game they previously participated in.
The idea of linking NFTs with in-stadium benefits and physical fan experiences was recently echoed by Candy Digital CEO Scott Lawin when he spoke at SportTechie’s Horizon Summit.
“We’re really seeing a continuum between digital-only, digital/physical and digital/experiential,” Lawin said. “Some people want a physical item, like a signed baseball. If they’re lucky enough, they might get a first pitch with the Phillies or a meet-and-greet between players and fans. “You can get an alert for a scavenger hunt, where you walk around the stadium and scan areas to unlock NFTs or prizes. Or it’s a sponsor night, and Budweiser is the sponsor, and NFT holders get a free beer.”
“In the long term, the markets for physical and digital collectibles will not be in direct competition with each other. Instead, they will be deeply connected and intertwined, Kaufman adds in the NRG report. “Buyers will be able to move seamlessly between the two mediums, and sellers will package physical memorabilia with NFTs – allowing collectors to display their fandom proudly both online and in the real world.”
