How web3 is transforming the world of sports
By Tim Dierckxsens, CEO of Venly
The arrival of web3 heralds a new era of sports, driven by advancements in the technology of the internet. Within the sports sector, Blockchain technology is leading a new digital transformation era by offering enhanced experiences, allowing sports organizations to diversify their revenue and connect with fans in entirely new ways.
The foundational challenge for many early Web3 technologies often revolves around putting the tech first and then searching for a use case, rather than focusing on actual problems and crafting the tech to address them. Once the tech-first hurdle is crossed and more user-centric functionalities are developed, Web3 will revolutionize multiple industries.
Web3 offers a deeper level of fan engagement by providing more personal, unique, and interactive experiences. With web3, fans can receive personalized tokens or NFTs for their loyalty, redeemable for exclusive content or experiences. For instance, in June, FC Barcelona partnered with the World of Women (WoW) to launch an NFT collection.
The launch of the ‘Empowered’ NFT series was a tribute to Alexia Putellas, captain of the team, and served to highlight the role of women in sports. The digital collectibles encapsulated her incredible performance during the Women’s Champions League semi-final match last year when she led the team to victory.
Then there is the NBA Top Shot digital collection, which gave fans the ability to own their favorite moments in Basketball. It focused entirely on the NBA and allowed them to access exclusive highlight content from matches that could be sold, traded, or bought within their marketplace. The collection was incredibly successful, achieving $45 million in peak sales.
The arrival of web3 also allows for more interactive and immersive experiences for fans. Additionally, Blockchain-based platforms can host virtual events or interactions between fans and their favorite artists or sports stars, bridging the gap between them.
With web3, there are also interoperable rewards. Unlike traditional loyalty points, which are limited to one platform, Blockchain-based rewards may be usable across various platforms, increasing their utility and attractiveness. Web3 can also ensure fair compensation for creators and artists – for instance, through the resale of royalties. In other words, every time an NFT or tokenized asset is sold, artists can receive a percentage of the sale, ensuring continuous compensation.
They can also host virtual events or experiences on the Blockchain, which can enhance brand loyalty and engagement. Web3 can foster collaborations that were previously impossible. For example, Liverpool FC’s digital collectibles invited buyers to join their ‘LFC Heroes Club’.
This club was an online community for fans which included a forum enabling virtual hang-outs. Fans who joined the community were also able to avail of a discount on Liverpool merchandise. Token-based loyalty systems can ensure fans and users get tangible rewards for their loyalty, which are secure, transparent, and can be traded or redeemed easily.
We’re seeing this through cross-promotion, where different entities can collaboratively release tokenized assets or experiences, promoting both brands simultaneously. For sports clubs, there are also exciting monetization opportunities, such as increased revenue from selling digital collectibles and traditional tickets and merchandise.
With platform interactions, users can interact, trade, share, and collaborate all within a single decentralized platform, making the experience that bit more seamless. Digital collectibles have surged in popularity among fans. They can increase brand loyalty as customers no longer need to purchase merchandise, membership, and tickets separately. The collectible combines all these things.
Moreover, they have the potential to drive loyalty by offering new ways for fans to collect items from and engage with a brand. This can create a sense of scarcity and exclusivity since the collectibles may only be available for a limited time. Therefore, by offering collectibles, brands can tap into an ever-growing trend of trading and collecting digital assets and establish a dedicated customer base.
Sports clubs can reach a new generation of sports fans by embracing web3 technologies. Young people are increasingly seeking new and improved digital experiences. While they often follow the same teams as their parents, they are spending more time online and in the digital world. Digital collectibles will enable fans to own part of their favorite sports. Being a fan of a sports club is a way of identifying with a group with that same passion.
Fans typically have a deep emotional connection to the team, so the ability to own part of their favorite clubs or sports is monumental. In this digital world, they can wear their identity through digital collectibles. They can also share the digital collectibles on their social media channels.
The 2022 FIFA World Cup witnessed many collaborations between web3 companies and brands selling NFTs to create digital memorabilia for sports fans. Lionel Messi, for example, launched a collection in November of last year and raked in $3 million. The collection was in celebration of his 17-year-long career with the Argentina national soccer team. It had 549 rare, limited edition items, offering a next-generation NFT experience for fans.
When a platform can combine all the above aspects of loyalty, fan engagement, brand activation, partnerships, and a wide array of utilities, it only becomes a more robust ecosystem. And it is an ecosystem that not only retains its existing users but attracts new ones. The real trick here is ensuring that the technology serves these functionalities and not the other way around.
Web3 technology is allowing sports organizations to engage with their fans more directly but they can also benefit from the data they provide. This has paved the way for new opportunities for sponsorship and fan ownership. There’s no denying that web3 technology is transforming the sector, and this transformation will benefit players, clubs, and fans alike. Digital collectibles will play a key role in this transformation, creating new opportunities for connection and monetization.
Bio
Tim Dierckxsens is the CEO of Venly, a Blockchain technology provider creating products to help companies succeed in Web3. Venly has been recognized as a digital pioneer delivering groundbreaking innovation to Web3 trailblazers. They have recently partnered with FIBA on a FIBA Basketball World Cup 2023 digital NFT collection, allowing fans to celebrate their love of basketball.
Uma Rajagopal has been managing the posting of content for multiple platforms since 2021, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune. Her role ensures that content is published accurately and efficiently across these diverse publications.