Globally, sports fans have had one dream: to have more voting rights on club leadership and more decision-making powers regarding player transfers. The dream might become a possibility in the next three years because Fan Tokens (FTs) are becoming a massive opportunity in sports. The quick adoption of NFTs and Cryptocurrencies makes the opportunity possible.
Fantasy sports and other forms of gaming have revolutionized the use of NFTs in sports, which users can purchase in marketplaces and big digital assets exchanges. Social investing in sports using cryptocurrency is possible via tokens backed by fiat or other cryptocurrencies such as bitcoin and Ethereum. Perhaps the developments in the virtual space are what inspired PSG and Cleveland Cavaliers to create tokens for the fans.
What is the use of Fan Tokens (FTs)?
FTs are coming up when the sports world is experiencing a financial revolution. Clubs are reporting massive revenues, with transfer fees going over the roof for top players. Colossal sums involved in the sports industry help make headlines more than they did a decade ago. Fans want to be a part of this success.
Intriguing developments in sports continue to make the news, and fans are a significant ecosystem of the stories peddled around. Football Tokens are a way for the fans to have a bigger say in the clubs they support. FTs want to destroy the centralized leadership structures that made fans third parties to pillars they helped create.
The fans want to vote out club leaders that do not deliver. They also want to have a significant say on the players contracted to represent clubs.
Sports Tokens have their fair share of issues, though; they have backing from other bigger cryptocurrencies. PSG, a football club in France, witnessed a massive jump in the price of their token once they signed Lionel Messi, one of the best footballers in the world. The development means that fans holding the PSG token could resale it for a higher value.
Barcelona, another top football club in Spain, is flirting with the idea of a club token to compete with other clubs that allow 100 percent private ownership. Clubs allowing 100% one-person ownership benefit from billions of dollars splashed in by their owners with little bureaucracy in decision-making.
Liverpool has recently launched an NFT project that lets their fans have a piece of a player in the form of an image, which they buy to help the club financially and can sell when the value rises. The project’s objective is to have the fans engage more with the club and to learn the intricacies surrounding digital assets.
Crypto Involvement in US Sport
The Cleveland Cavaliers are among the first in the USA to announce a fan-centered token offering. The NBA-affiliated basketball team wants to bask in the glory of success together with its fans all over the world by bringing them closer with the token. The FTs are platinum-like cards that will create super fans for the club in many ways. The token is significant in areas such as ticket allocation, early access to player merchandise, and close interaction with star players.
The future seems ripe for the growth of FTs in America, as massive crypto companies are scrambling for a piece of the sporting industry that is constantly growing. For example, the Los Angeles arena has witnessed a substantial injection of $700 million from a crypto company for the naming rights.
Voyager digital has targeted the women’s soccer league in a move that will see the players have personal cryptocurrency wallets, and receive education on trading the crypto already in their wallets. The commercial interests of the company might spark the idea of a crypto token for the fans soon.
Massive developments in crypto, in the US, are the driving force that pushes for the creation of more FTs for the fans by different clubs.
Ultimately, fans will be more willing to buy the tokens, creating a more compact ecosystem between them and the clubs they support.