Future of Blockchain Sports Sponsorships
The 2022 global sports marketing report claims that blockchain companies investing in sports sponsorship is expected to reach US$5bn by 2026. Crypto sports sponsorships present an effortless entry towards the ultimatum of integration. Crypto payments for sports merchandise, tickets or salaries being paid in crypto are closer than they have ever been.
OpenSponsorship’s association with the Dallas Mavericks is an excellent example. The NBA team, a step ahead, already accepts crypto payments for merchandise and tickets. Sports partnerships like these are a testament to overall growth and importance to various sports industries. But, how can one leverage crypto to assist in the success of their sports sponsorship business? There is arguably no better method to promote your business than to partner with a worldwide athletic property that can deliver your message to your target demographic directly. Already, we're seeing blockchain and crypto firms form partnerships with sports teams, such as Arsenal and Cashbet in English soccer or Dragon Coin and Techeetah in Formula E.
What are fan tokens and how do they work?
The sports sponsorship industry is continuously monitoring new synergies within the trending space of cryptocurrency. Fan tokens are cryptocurrencies linked to a certain team or league that can be used to exchange team-related value such as tickets, voting on club matters, granting retail discounts, and increasing fan participation. Fan tokens have already been implemented by Atlético Madrid, FC Barcelona, Paris Saint-Germain FC, AC Milan, Juventus, and AS Roma.
Why is cryptocurrency essential to the sports sponsorship ecosystem?
There should be more opportunities for companies within the ecosystem willing to participate. Legitimacy and fan engagement are marked as the two key components for the success of sports sponsorship companies. Sport sponsorship organizations can leverage blockchain technologies by implementing a more secure and transparent ticket exchange system. This technology opens up the door for both sponsors and rights holders to forge new relationships by effectively democratising the sports sponsorship playing field so any brand can play on sport’s grandest stages.
What should Sports Sponsorship industries keep in mind moving forward?
Despite the surge in interest in digital money, sports teams should be aware of the dangers that this new technology poses. The value of crypto-assets remains unpredictable, and the legal and regulatory landscape remains unsettled, despite the extraordinary rise. Due to the lack of consistency in this field, sports organizations will be forced to make agreements that hedge a contingency in order to save money if valuations shift. The emergence of crypto-assets, on the other hand, provides potential and excitement for the sporting world.