NFTs
How Digital Collectibles Are Shaping Athletes’ Legacies
Since the beginning of sports, athletes have built their legacy on the field of play. We admire their accomplishments; we cling to their records, their milestones, and the countless moments that make up their victories. Starting in the 2010s, the introduction of social media transformed the playing field: giving us more access and insight into famous players. A decade later, the rise of NFTs gave fans and their favorite athletes a new way to connect. Now, blockchain-based collectibles and games are changing the way we view and engage with athletes: as fans increasingly have the tools to contribute, own, and expand the playing field for their favorite stars.
In preparation for the upcoming Summer Olympics in Paris, Michel Cadot has advised the Prime Minister’s Office to implement blockchain ticketing for all major sporting events surrounding the Olympics held in Paris. Individuals would receive their tickets as rotating QR codes via blockchain technology, with NFT tickets sent out a few days before the event. These tickets will be activated within a specific perimeter of the event venue to reduce ticket fraud, but also allow event attendees to have a lasting memory on the blockchain.
As we see events like the Olympics and leagues like the NFL, NBA, and MLB all experimenting with blockchain and NFTs in different ways, the question arises: are on-chain assets the future of athlete legacies? Let’s dive into how this technology is used today and what it could mean in the coming decades.
NFTs allow fans to own a piece of the game by immortalizing iconic moments as digital collectibles. This preservation extends the impact of the game beyond the venue, creating a timeless connection between fans and their favorite sports. By owning these unique digital recreations, fans can engage with the sport on a deeper level, experiencing a sense of ownership and participation that goes beyond just watching or interacting on social media. This innovative use of blockchain technology ensures that memorable plays and legendary highlights can live on forever, increasing fan loyalty and engagement.
For example, a recent collaboration between AC Milan and Fanblock tokenized the stadium experience. Fans can own virtual plots of land inside stadiums, earning rewards based on in-game events that occur in their area during official matches, such as goals, assists, and yellow cards. In 2022, To the announced a commemorative NFT collection called Art Balls, featuring 6,776 unique digital tennis balls. Fans and creators can submit designs for these NFTs. Owning an NFT grants access to a digital tennis court in the Decentraland Metaverse, where historical highlights of the competition are streamed. Additionally, each NFT is tied to a specific section of the physical court, and owners of the section where the winning shot lands will receive exclusive in-game data.
Additionally, Major League Baseball (MLB) now offers highlights of recent and historic games, allowing fans to access content they couldn’t before that can forever memorialize a favorite moment or game they watched. MLB also allows fans to own player memorabilia in a digital format, opening up a new way to support their favorite players that goes beyond a physical piece of memorabilia or trading card that can be lost, stolen, torn or broken. With these assets living on-chain and verified forever, fans mitigate these previously associated risks, giving these valuable pieces a longer life.
Professional athletes, some of the most physically and mentally gifted individuals, have long struggled to fully capitalize on their personal value. Traditional physical auctions often fail to capture revenue for the athlete or their estate. By leveraging NFTs, athletes can create new revenue streams that extend beyond their active career years, which typically last only 5 to 7 years. Agencies like Young Money APAA Sports are now providing clients with their own digital player cards, allowing athletes to profit from their name, image, and likeness and collect royalties on any resales.
This digital approach allows athletes to capitalize on their fame and achievements in perpetuity, ensuring that they benefit financially from their legacy. NFTs not only democratize the auction process by eliminating middlemen, but they also provide athletes with ongoing opportunities to monetize their career highlights, memorabilia, and exclusive digital content directly to fans. Tiger Woods, Khabib Nurmagomedov, Stephen Curry, Micah Johnson, Son Heung Min, Rafael Nadal, Lionel Messi, Tony Hawk, Tom Brady, Usain Bolt, Wayne Gretzky are just a few examples of athletes who have officially licensed NFT collections.
We have also seen the emergence of sports organizations that use Fan Tokens – unlike NFTs, these are fungible or interchangeable cryptographic tokens that can be used as currency to exchange for merchandise, VIP experiences, and more. These tokens are used in an almost DAO-like structure, meaning that when a holder accumulates enough tokens, they have the ability to vote on club matters such as designs, ticketing issues, and match venues. Fan Tokens open up new and exciting possibilities for fans who are already rooted in their favorite club’s activities, allowing them to feel the rewards of a team’s successes and further increase their loyalty.
While the Chiliz Fan Token emerged as the first of its kind, popular clubs such as Manchester City and AC Milan have also integrated this system. These tokens not only benefit the fans who choose to participate, but also provide clubs with a new revenue stream that benefits the club as a whole, its players, and the fans.
Web3 has also wrapped its business around gaming, offering a plethora of possibilities for iteration when it comes to traditional gaming. While there have been hits and misses when it comes to Web3 gaming, there has been a lot of success when it comes to how Web3 games interact with different aspects of sports. These games give fans the ability to take on the role of general manager of their favorite teams or interact with their favorite players, bridging the real world and the virtual world. Games that leverage blockchain as an underlying technology engine allow users to own, trade, and manage digital assets, while also using cryptocurrencies to blend investment with strategy and entertainment.
Mobile and browser-based Web3 games are truly at the forefront of the growth of Web3 sports games. For example, Sorare is a fantasy football game where users can collect officially licensed digital collectibles to build teams and play in tournaments. In this, users act as general managers to make strategic decisions for their teams, all while earning rewards. NBA Top Shot is another example where users can build teams, participate in challenges, collect highlights, and earn rewards. Finally, games like “FootballCoin,” a browser-based Web3 game, allows users to be the manager of their team using player cards of varying rarity and value to influence strategy and gameplay. Platforms like these engage existing and new fans in innovative ways, paving the way for athletes and clubs to shape legacies in the digital age.
Web3 games serve as more than just a new form of entertainment; they rethink how fans interact with sports and athletes. Allowing fans to directly engage with their favorite teams, sports, and athletes helps preserve and enhance how fans think about their favorite athletes in the present, but it also serves as a way to keep legacies alive by bringing fans closer to the action and deepening the connections they feel with the game.
The role of digital collectibles in shaping athletes’ legacies will be transformative. These new experiences not only redefine how athletes engage with their fans, but also democratize access to sports memorabilia and preserve pivotal moments in sports history. Blockchain-based collectibles and games empower athletes to take control of their digital presence and narrative, offering them a new way to share their stories and connect with fans around the world. By embracing them, athletes can transcend the boundaries of traditional sports marketing and leave a lasting mark on the digital landscape.
Please note: The opinions expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.