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From the 30.6 million international viewers of the recent Paris 2024 Summer Olympics to the local pub broadcasting an entry level FIFA qualifier, the love of sports runs deep regardless of culture. Sitting back and relaxing with friends while cheering on a fan favorite is a beloved pastime regardless of team, history, or geography.
With so much interest in the industry, new technologies and adaptations are being introduced to maintain high levels of consumer engagement. Some of the more exciting developments include utilizing Blockchain technology, NFC (Near Field Communication, and improving fan interaction through NFT (Non-Fungible Token) offerings.
While companies like Lab 42 remain on the cutting edge of such integrations, any sports club owner or league development officer needs to keep updated with industry trends.
The Blockchain is a digital ledger. It is a way to have records of transactions (using peer-to-peer verification) that are decentralized and distributed, so there is no governing control. You typically hear about Blockchain through cryptocurrency, but the technology can be used in a number of new and exciting ways to cultivate transparency and trust.
For example, the secondary ticket market has grown to a value of $2.6 billion due to scalpers and online bots swiping up tickets and then selling at a markup to consumers. Using Blockchain-backed ticketing could provide an unalterable record of ownership and transfers. This also cuts down on potential counterfeiters.
Smart contracts are another way this technology is changing the sports world. The Blockchain ensures transparency when it comes to contract conditions, payment schedules, and performance benchmarks. With such innovation, automation concerning the management of royalties, payments, and broadcasting rights can be streamlined and more secure.
Tokenization is another way Blockchain can drive innovation and new revenue for club owners. Fans get more engagement when they have the chance to purchase digital tokens to collect, trade, or redeem for exclusive events. You can already see the positive growth of such revenue streams ahead of this year’s international soccer schedule. There is no limit to how we can integrate Blockchain into daily operations.
While Blockchain certainly provides fascinating innovations, NFC is also transforming the fan experience. Many of the NFC integrations came as a result of the recent global pandemic. The drive to include contactless solutions for ticketing, payments, and data collection meant using QR codes and NFC communication – forcing teams, clubs, and locations to modernize.
Imagine being able to create branded “smart cards” where fans can purchase items at concessions or get into various events, all while owners get to track behaviors and fan data for more significant insights into decision making. Not only does this speed up service quality, but it reduces the administration burden on a club.
The easier you make a purchase, the more items will be bought. When you partner NFC technology with personalization based on the communicated data, loyalty programs and tailored offers on exclusive content or discounts suddenly become a reality. The partially engaged fan is transported into a system where everything becomes tailored to their unique needs and desires, helping you expand revenue opportunities.
NFT technology is still new. While early adopters flooded the market a few years ago, the industry is still going strong by helping athletes and fans build digital assets for one of a kind collectibles.
With NFTs, you create a sense of scarcity. Merchandising takes on a whole new meaning when only one or a few individuals can own certain digital assets like online baseball cards or the sounds of a cheer after a home run. You can use NFTs for:
NFTs also provide leagues and clubs with futureproofing sponsorship deals. Sponsors can have brands “embedded” into digital assets, ensuring high volume visibility and securing new revenue for the club.
When you take into consideration the combination of Blockchain, NFC, and NFT technologies, one thing becomes extremely apparent – smaller clubs now have tools to generate larger revenues. Instead of increasing overhead with an army of new hires, these tools allow for digital automation, streamlining operations and opening doors to new revenue.
The automation behind ticketing and asset control alone could revolutionize the industry. All the manual processes are thrown out the door, and scalability becomes a real asset for a sports club. While this is happening, you’re also building new engagement pathways for consumers who want to continue the rabid love of a player, team, league, or sport.
The most difficult challenge of integrating new technologies is adoption from internal users. Blockchain may seem like the perfect solution upfront, but you could face an uphill battle without the “know-how” to leverage this tech. The easiest way to integrate Blockchain, NFC, or NFT solutions is by seeking system-wide support. Using a suite developed by industry leaders ensures a system-wide governance platform with clear communications that enhances sports clubs, players, and visitor experiences.
To survive in today’s world, you must break through the barriers of resistance from traditional sports leaders unfamiliar with the technology. Having someone like Lab 42 help with the transition ensures wide company adoption and an inclusive culture of change.
The future of sports clubs looks bright. The ripple effect of the pandemic that leads to lower attendance rates is slowly easing, allowing clubs of all sizes to come out of the bunker and begin expanding new revenue streams and fan interactions.
Automating any advancement using Blockchain, NFC, and NFT technology is one of the best ways to ensure a strong future for a club, league, or venue. New revenue streams are unlocked while fans get interactive and personalized ways to enjoy their favorite teams, and back-office operations are finally streamlined to reduce human error and streamline mundane tasks.
Build a custom solution aligned with your brand and sports club goals by contacting an industry leader. Emerging technologies are the ticket to a revenue-generating future in an industry where crowd sizes make all the difference.
