With the cryptocurrency market expanding, it’s no surprise that the sports industry is now looking towards the world of digital assets for capital gain.
The use of cryptocurrencies in sports, such as the Australian Football Association (AFL), has increased rapidly in recent years, resulting in cryptocurrency becoming one of the fastest rising sponsorship categories in the sporting world.
This has not only led to large multinationals attempting to use popular sports to increase their brand’s exposure but has inspired the sports industry itself to embrace the crypto market in numerous ways.
According to research by global data intelligence company Morning Consult, almost a third of sports fans currently own cryptocurrency.
Sports fans are also twice as likely to be familiar with digital currencies than non-fans. It’s perhaps inevitable, therefore, that clubs and associations are capitalising on the interest in cryptocurrency among sports fans.
Sponsorships and Deals
Sports companies are realising the potential for blockchain technology in transforming the fan experience while boosting their revenue, and they are doing this through attracting more crypto sponsors.
The AFL, for instance, and Crypto.com – the world’s fastest growing digital currency exchange platform – have just recently announced a five-year deal. The new deal will see the network become the exclusive cryptocurrency exchange and trading platform of the men’s and women’s leagues.
Crypto.com will also function as the naming rights partner of the AFL Score Review for all regular season and Final Series games.
Cryptocurrencies have also been used by international football clubs to secure deals.
When David Barral was transferred to Dux International, he was bought with Bitcoin, making him the first footballer to be signed using cryptocurrency as payment.
Furthermore, this historical transfer was made possible due to sponsorship from Criptan, a digital asset trading exchange platform.
Rimini FC have also embraced the crypto revolution by using Quantcoin in their stake sale; as have Watford FC who now display the Bitcoin logo on their team shirts.
Fan Tokens
Clubs, teams, and sporting authorities are always striving to create new innovative ways to thrive in the digital age. This is particularly apparent in the current climate, where more sports industry organisations have to ensure that fans stay connected in a socially distanced society.
Non-Fungible Tokens (NFTs) are digitally generated tokens using blockchain technology that have been used in the gaming world for some time. The sports industry has adopted something similar in Fan Tokens. These are cryptocurrencies used by sports clubs that offer fans access to various membership perks, such as merchandise, voting rights on club decisions, unique experiences, and more.
Many of the larger soccer clubs offer their own unique Fan Tokens. Not only can fans watch their favourite team playing at matches, but they can reap numerous benefits befitting the digital age.
Some of the Premier League clubs, such as Chelsea FC, have launched Fan Tokens that allow their supporters to attend matches on a digital platform. Socios.com is a fan app that uses blockchain technology to offer supporters interactive experiences as well as access to trading tokens. While the main – and traditional – way for fans to engage with clubs is to find Chelsea tickets at SeatPick or buy shirts, Socios.com attempts to offer another means of ‘being a fan’.
The sports industry has realised the potential that digital assets can bring about and is aiming to monetise on it. It is doing this by using crypto sponsors, trading in cryptocurrencies, and offering tokens to fans. How the sports industry will continue to use the crypto market in future remains to be seen.
