Can crypto currencies and NFT’s benefit from sponsoring big sport leagues?

Crypto currency is quickly becoming one of the business industries most highly developing sectors as there has since been a significant upsurge in the amount of crypto-related endeavors for a variety of professions, which includes some of the latest marketing trends utilized by other respected firms.

New Yorkamericajuly 2020 Closeup Cryptocurrency App Stock Photo 1791709877 | Shutterstock

There are many forms of crypto currencies which can range from the likes Bitcoin and its related blockchain’s as well as other variants such as Litecoin and Dash, with all of these major crypto assets providing their own unique method of earning income via a digital forum or platform.

One individual piece of crypto currency that has continuously garnered a widespread amount of approval and merit from its users and other innovators is the NFT (Non-Fungible Token) circuit which is a digital piece of artwork, or other related forms of media such as videos, which can be purchased across a crypto marketplace but cannot be reused or replicated in any way from its original design.

Following this surge in popularity of crypto products and NFTs in particular, the market has now spanned into numerous acclaimed firms that include the likes of individual NFT marketplaces such as ‘The Sandbox’, ‘Illuvium’ and GALA, who all provide a full listings of the numerous NFT products that many crypto artists now produce on a daily basis.

Due to this trend now growing to such an unprecedented level of attention and further investment, there is now a much greater demand for further promotion of crypto products to be included in various forms of media and in other industries, with sports being a particular hot commodity for future crypto promotion and commercial opportunities.

• How has crypto currencies benefited from the sports industry?

There are many individual ways that crypto products and digital services have been able to benefit from various sporting events, with one such asset being the ability to purchase gameday tickets for any fans who have an interest in using crypto expenses for a chance to watch their favorite players in action, as well as checking out all the latest MLB odds on the BetUS sportsbook.

Alongside this developing way of purchasing match tickets, there is also a possibility that sporting organizations and related promotions could use crypto currency as a way to gather revenue for future fees or contracts for their latest incomings, which can include new signings or endorsements.

Blockchain technologies have also helped to improve the security and flexibility of exchanging tickets upon entry into any venue of choice, with other facets likely to be introduced upon the continuous development of the crypto circuit.

 

Bitcoin American Football Golf Tennis Ball Stock Photo 1963192411 | Shutterstock

• Could crypto currencies become a part of sports advertising?

There have been a few cases where crypto firms have been involved in the endorsements of several sporting organizations as well as the top athletes featured in the industry today, with one recent example being the Staples Center venue in Los Angeles (which is the home arena of the LA Lakers and Clippers franchises’) changing its name to the Crypto.com arena which it is now fully identified by in the heart of the city’s sprawling downtown area.

However, there are several implications that have since been raised by authorities surrounding the potential naming rights or sponsorships of such assets that are catered to the sporting and entertainment industries, which is mainly due to the bankruptcy of popular crypto currency firm FTX.

This company had previously acquired the naming rights to the Miami Heat’s home arena before its shocking collapse into liquidation which has now left any further collaborations with future crypto companies as a questionable endeavor for any sporting organization to undertake.

Even before the FTX bankruptcy, there was already a well-documented market downfall for crypto products which has had a great affect in the further development of any further sponsorships.

Signage outside the FTX Arena in Miami, Florida, US, on Thursday,… News Photo – Getty Images

A reported figure estimated that the number of sports deals with crypto currencies was down by 50% in July of 2022 compared to the start of the calendar year, with other digital firms now pulling out of negotiations for any further sponsorship opportunities.

There remains other issues surrounding the roles that celebrities and athletes can provide in the legitimacy of crypto currencies and how costly these products could truly be for the average sports fan or individual, which raises other ethical concerns surrounding the disparity between high-profile names and a regular individual as there have been issues raised about whether this sort of investment is out of reach depending on a consumer’s financial status.

There have been several athletes who themselves promote their own release of NFTs and their collaboration with crypto currencies, which includes star names such as Stephen Curry and Tom Brady, yet it remains unclear as to whether there is a potential spot in the marketing of crypto products at this current juncture within the sporting industry due to the ethical issues that are being currently raised.

To conclude, crypto currencies will likely remain a viable trend with significant upside and potential but one that will stir up lively controversies surrounding its place in the industry at this moment in time.