Crypto is something that is transforming the world of finance right now. However, it is also making inroads into sports (often in ways that a lot of people simply don’t expect).
But what specifically is happening? How is crypto making a difference?
Greater Athlete Empowerment
One of the things that’s happening is greater athlete empowerment. Crypto is changing the ways that sports stars get paid, allowing them to become independent from conventional banking.
What’s interesting about this process is that it is opening up more opportunities for decentralized payments in sports. These models are allowing athletes to get paid what their fans think they’re worth instead of having to take the contracts forced on them by their employers or team owners.
Integration With Existing Technologies
On the fan side, we’re also witnessing the integration of various crypto and blockchain technologies with things that fans want. For example, the blockchain is merging with the metaverse to create new sports environments that allow people to observe or even bet from the sidelines.
The best example of this at the moment is the virtual reality experiences being offered to fans. Instead of going to physical matches, they can watch in 3D through their visors and believe that they are there.
At the same time, there are virtual betting lounges and storefronts for teams. Again, these give fans the experience of being at the sports ground itself and being there, right alongside all their favorite players.
Finally, crypto combining with existing technologies in sports entertainment could lead to more NFTs. Fans could collect these if they are officially sanctioned by players, increasing the value substantially.
Crypto Sponsorships
Crypto is also teaching us that the future of sports may have a lot of blockchain-based sponsors. As the real economy crumbles, it may be these entities that shore up the sports industry and continue to finance it.
You already see quite a few crypto companies investing in the sports world. For example, Crypto.com put $700 million into the naming rights for the Los Angeles Staples Center. Similar things have been done by other crypto players, looking to cash in on sports’ visibility.
What’s interesting about a lot of these investments is that they have global reach. Crypto is something that appeals to people on every continent.
Revolutionized Sports Betting
Crypto could also have profound effects on sports betting, changing how fans place bets for football, soccer, tennis and other sports. These systems would use smart contracts to determine who had placed bets and automatically transfer funds, perhaps without a bookie.
Smart contracts are already being tested on decentralized platforms, showing how blockchain technology can simplify sports betting and reduce the role of intermediaries.
You already see this trend in action on some sportsbooks. The idea is to lower fees for players and increase the probability of returning funds to players
Furthermore, blockchain gives bettors finer control over how they place their bets. The idea is to make betting more decentralized and prevent it from suffering from high overheads, which is a significant problem in the industry right now.
Global Accessibility
Accessibility to global sports is challenging today because of the need for currency conversions (which is a problem for a lot of people who live in smaller countries). However, crypto is genuinely international and borderless, meaning that it doesn’t require any conversions. People simply accept it on merit, like gold.
This change means that the nature of sports is likely to change, too. Many more people will be able to participate in the financial services and systems built around sport, not just those holding USD, GBP, CAD, or AUD.
What this means for the sports industry as a whole is unclear. The most likely outcome is that it will grow significantly, allowing it to expand beyond its current size and really start becoming international. Those based in the biggest sporting countries in Europe and the U.S. will be able to take advantage of these trends and benefit from increasing foreign exchange. Eventually, it should be just as simple for a Nigerian to bet on the state of play in American football leagues as it is for someone already living in the U.S.
Improved Transactions
Another perk in a future world of crypto-based sports will be improved transactions. These will essentially make player transactions tamper-proof, preventing anyone from intercepting merchandise or ticket sales.
Clubs themselves might also benefit when making larger transfers. Sending millions of dollars’ worth of bitcoin is often more secure than trying to do the same with cash. Security is inherently built into the system.
The Turkish football league has already experimented with this idea. In 2018, one of the teams transferred a player using crypto, showing that it could be done.
Enhanced Fun
Another way crypto could change the future of sports is to make them more fun. The idea is to tie digital assets via fan tokens to various teams and players and then use these to offer additional “stake.” For example, fans could be involved in exclusive content, club decisions, or could even have VIP experiences with the players.
These sorts of setups are quite complicated to arrange through traditional websites and banking, but far easier on the blockchain. All that’d be required would be for fans to simply use their tokens or make purchases, or perhaps even earn tokens that they can then use toward perks relating to the club.
Currently, there are very few real-world examples of these concepts. However, it could be something that arrives soon, given the current progression of the technology.
The rise of fan tokens and NFTs highlights how crypto adoption is reshaping the global sports economy, giving fans more direct ways to participate.
Decentralized Revenue Streams
Finally, the use of crypto in sports will open up new revenue streams that increase the transfer of wealth from fans to players and team owners. What shape this takes depends on how things evolve, but it could mean selling fans unique digital collectibles via the blockchain in exchange for their money.
FC Barcelona actually tried this recently, selling fan tokens for more than $1.3 million in a matter of hours. The club was then able to distribute this money to wealthy shareholders and executives, showing how profitable crypto could be in the sports world.
