Franchises and athletes are getting in on the Sports NFT action. Always in search of new revenue streams, teams are trying everything from NFT card collections to meet-and-greet smart contracts.
First: What Is an NFT?
NFT stands for non-fungible token, an offshoot of the cryptocurrency ecosystem. Think of NFTs as digital files that can be bought and sold for cryptocurrencies, like Bitcoin and Ethereum.
NFTs can be digital photos, documents, videos, and even .gifs. Basically, any electronic entity managed by smart contracts qualify as NFTs. For example, Jack Dorsey’s first tweet was an NFT that sold for US $2.9 million.
So what are smart contracts? They’re legal agreements that reside in digital files on blockchain networks. Since they’re electronic, smart contracts can serve as digital bodyguards and include access-blocking parameters. Smart contracts can also limit allowable copies.
Financially speaking, NFTs are digital assets that you can trade, buy, and sell for cryptocurrency. But like the modern art market, NFT prices are subjective.
Sports Teams and NFTs: A Match Made in Profit Heaven?
Covid-19 clobbered the professional sports industry. Some leagues, like the NHL, made a demi-season work in highly controlled bubbles, but billions of dollars in ticket and concession revenues were lost to the pandemic’s greedy jaws.
But teams and leagues are now using NFTs to bolster their bottom lines. And it makes sense. The investment output is minimal, and the profit potential is sky high. Plus, since little infrastructure is needed to support NFTs, if they don’t sell well, it’s not a huge deal.
Notable Sports NFT Action to Date
Many teams, leagues, and athletes have already dove into the NFT market.
| Team / Athlete / League | NFT | Price |
| Rob Gronkowski of the Tampa Bay Buccaneers | Partnered with Medium Rare, a content agency, on an NFT card collection featuring clips of in-game action shots | About $1.8 million in sales (so far) |
| Golden State Warriors | Launching NFT collection of digital rings, ticket stubs from famous games, one-day experience contracts to do meet-and-greets with the team | Has yet to launch; proceeds will support the Warriors Community Foundation |
| National Basketball Association (NBA) | The league collaborated with Dapper Labs, a FLOW-fueled blockchain initiative, to sell, buy, and trade NFTs of licensed video highlights | $500 million in revenue (so far) |
| Major League Baseball | The league collaborated with the Topps Company to create a series of NFT baseball card sets that range from $5 to $100 per pack. | No revenue info available at the time of writing |
| Evan Mobley | Created an NFT to commemorate his decision to enter the NBA draft that was auctioned on OpenSea | Sold for $2,163.36 |
| Taijuan Walker | NFT of a digital baseball card, featuring Walker throwing a bullpen session in a sparkly blue uniform with his signature inscribed over the top | Sold for over $4,274 at auction (2.35 ETH) |
The Future of Sports NFTs
Though the cryptocurrency market remains volatile, it’s not going away, and professional sports leagues are diving into NFT action. Vivek Ranadivé, owner of the Sacramento Kings, allows his players to get paid in Bitcoin, and franchises are now considering NFT options in collective bargaining agreements and individual player contracts.
If you’re interested in sports NFTs, get in touch. The Kelly Law Firm will help you get the project off the ground while ensuring compliance with all local, state, federal, and international regulations.
