The synergy between sport and crypto has numerous benefits for both industries, influencing the global fan base engagement, creating new revenue channels, and possibly introducing innovative technologies to enhance the overall experience for fans and shareholders.
Through partnerships with sports teams and individual athletes, crypto companies are looking to expand their reach to younger, tech-savvy generations of sports enthusiasts. On the other hand, sports organizations benefit by tapping into new revenue streams and creating unique fan experiences. This article presents how and why the collaboration between sports and crypto is a win-win.
Massive Sponsorship Deals
Crypto companies sponsor the world’s best teams and athletes in many professional sports, which has become a big part of their marketing strategies. Nowadays, you can notice countless sports teams wearing crypto companies’ names on their jerseys.
Crypto.com took this to a whole new level after signing a new deal with the Los Angeles Clippers for a whopping $700 million. The previously known Staples Center is now Crytpo.com Arena. The same company is also an official crypto partner of FIFA and the 2022 World Cup in Qatar.
There are multiple other examples in other sports like the FTX and Major League Baseball deal, Red Bull Racing and Bybyt, Sri Lanka and Ireland cricket teams and CoinDCX, and so on.
On the other hand, many sports teams and athletes have embraced non-fungible tokens (NFTs) for creating unique digital collectibles. As a result, sports organizations and individuals can tokenize valuable moments like iconic plays and sell them as digital assets.
Crypto platforms engage with targeted audiences through sports sponsorships. This way, they’re able to target specific demographics through sports teams and individual athletes they sponsor.
Is it (All) About the Money?
From an economic perspective, sports teams accepting crypto companies’ sponsorship deals makes sense, as it opens new avenues for revenue generation, enhancing financial stability and the long-term success of teams. But there’s more to it.
The interest of younger generations in professional sports is rapidly declining. In reality, Generation Z is turning toward streaming TV, social media, video games and – crypto.
In 2022, Manchester City, the UK football (soccer) club, signed a $27 million deal with OKX as its official exchange partner.
Given the fact the famous English club is owned by Sheikh Mansour, the chairman of the International Petroleum Investment Company, worth more than $14 billion, the deal with the popular crypto exchange wasn’t necessary from a financial standpoint.
The overarching objective was to leverage the positive associations of crypto enthusiasts, potentially converting them into loyal Manchester City consumers who resonate with the club’s forward-thinking approach and technological embrace.
Through direct proximity to the mentioned crypto platform, a strong connection to the club is established, and the brand is emotionalized. Given that almost 76% of UK crypto owners are under 45, we can conclude Manchester City was looking to attract both crypto-curious and crypto-serious Gen Z-ers.
Now, will such a trend bring any result is an entirely different question. Looking at the Ethereum live chart, a Zoomer would rather buy 0.3156 ETH than a Level 1 Manchester City season ticket for $640. From a logical standpoint, the majority would lean towards the option with the potential for financial gain.
From Touchlines to Transactions: The Seamless Integration of Sports and Cryptocurrencies
Crypto could play a significant role in reshaping the sports industry as we know it today. It could have a gigantic impact on both fans and sports organizations in more than one way.
Introducing decentralized finance into the sports world could revolutionize how fans purchase tickets. Such a system would allow fans to track the entire lifecycle of a ticker, from issuance to resale. Smart contracts could reduce the need for intermediaries and streamline the overall transaction process.
The use of blockchain could improve the security and privacy of fan data. Sports clubs could use blockchain technology to store data related to the personal information of ticket holders and reduce the risk of data breaches.
Cryptocurrencies could help sports organizations create blockchain-based loyalty programs to engage crypto-enthusiasts by incentivizing them to attend games, purchase merchandise or participate in various fan events.
To conclude, the synergy between crypto and sport offers a vast ocean of possibilities not just for crypto companies and sports organizations but also for fans all over the world.
Conclusion
The symbiotic relationship between sport and crypto can bring many benefits for both realms. The presence of crypto has opened sports organizations new doors for generating extra revenue and attracting the tech-savvy audience who is more interested in crypto than sports. On the other hand, crypto companies are looking to expand their reach through global partnerships.
The seamless integration of cryptocurrencies into the sports industry, especially through decentralized finance and blockchain, offers a promising future. We are looking into transparent ticketing systems, personalized fan experiences and secure data management as the next logical step in sport and crypto evolution. In essence, the synergy between crypto and sports could reshape the future for sports and crypto fans, bringing them closer together than ever before.
