For clubs and leagues, token sales and metaverse events have the potential to become significant revenue streams.
According to PricewaterhouseCoopers, digital assets have the potential to fundamentally alter how fans interact with their favourite teams and sportsmen, as there will be more opportunities to “meaningfully connect” than ever before (PwC).
Additionally, digital assets can provide significant money for sports companies. According to PwC, the three greatest revenue streams for teams and leagues are ticket sales, media rights, and sponsorship.
The paper said that all three streams might see significant growth as a result of tokenized tickets, non-fungible-token (NFT) media rights, and sponsorship of digital or metaverse events.
NFTs are blockchain-based digital assertions that reflect ownership of virtual or real goods. While collectible NFTs and season ticket member tokens are evolutions and expansions of existing loyalty programmes, the paper stated that integrating the metaverse with digital assets (both fungible tokens and NFTs) creates a new market for additional fan segments.
The analysis indicated that digital asset sales might become a significant revenue stream for several teams and leagues during the next five years.
The capacity to develop digital asset infrastructure will be the most difficult task for the teams, and they will require sophisticated technology to connect digital sales data to current client bases, the report noted.
Additionally, firms must anticipate and reduce legal risk and tax issues associated with digital assets, according to PwC.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
