PwC says NFTs and digital assets will boost sports revenue
- PwC is planning three major changes to ticket sales, media rights and sponsorships.
- NFTs and digital assets will be central to fan engagement and revenue streams for the sports industry.
- Metaverse and Web3 integration also holds great promise for the industry, the company said in a report.
NFTs have vast potential and are likely to become “the future of digital assets in sports“, said the auditor of the Big Four PwC noted in a new report.
That of the firm Sports Industry Outlook 2022 The report highlights non-fungible tokens as one of the top ten trends that could significantly boost the esports industry.
According to PwC, the growth of NFTs and the overall adoption of digital assets is a development that has the potential to “shape the fan experience” and increase revenue opportunities.
According to the report, sales of collectible NFTs, subscription member NFTs and virtual access tokens are likely to play an important role in the fan engagement revolution. But more than that, like ticket sales, media rights, and sponsorships, the fast-growing NFT space could open up new revenue streams for teams and leagues.
“For sponsors, tokenization is a great way to align with a team or league and create unique activations that build equity across both brands.“, noted the firm.
Sports organizations and teams can explore collectible NFTs, upgrade to token tickets, team memorabilia, and even game highlights.
These can become key collectible NFT series, with selling and trading them an avenue that can generate new revenue at a level never seen before. The same concept could apply to Season Subscribers (STM) and Virtual Access Tokens.
Metaverse and Web3 are also going to be major “changes” in the coming years, with growth around these seeing “a reimagining of much of how fans consume sports.”
As teams and organizations seek to integrate and benefit from this technology, PwC advises investments in the infrastructure and talent essential to making it happen. It is also important to work on legal and tax compliance.
NFT Sales was rising to more than $17.7 billion in 2021, doubling from a total of approximately $8.5 million in 2020. Resale and purchase profits have also increased exponentially, reaching more than $5.4 billion in 2021 compared to $12 million a year earlier.