Sport NFTs to generate more than $2bn in 2022
By the end of 2022 4-5 million sports fans will own a sports NFT
Deloitte Global, the multinational professional services network has predicted that non-fungible tokens (NFTs) for sports media will generate more than $2bn (£1.49bn) in transactions in 2022, which is almost double the figure for 2021.
The multinational company also predict that by the end of 2022, 4-5 million sports fans globally will have either purchased or been gifted an NFT sports collectible.
Deloitte also attempted to explain why sports fans and the wider public are willing to pay for NFT versions of video clip that can be viewed by anyone in the world for free. Deloitte states that value for each NFT case is “a function of demand and scarcity” and that each NFT is “unique”.
Deloitte describes NFTs as “unique digital identifiers that use blockchain to record ownership of media”.
2022 most common sports NFTs will be video clips
The company also predicts that the most “common and lucrative” NFTs in the sports industry will likely be the sale of limited-edition video clips of sporting moments or player cards.
The value of each NFT in this case will depend on the prominence of the athlete, the significance of the event and any additional content included within the NFT.
Additionally, the company compares NFTs to pieces of art, as some works of art, which are variants of the same piece of work have different values due to the differing numbers of certified copies.
NFTs can bring additional revenue to sports leagues and athletes
The sale of NFTs can bring “additional revenue to sports leagues, teams, and individual athletes” whose income has declined during the numerous lockdowns.
Also, an NFT contract may require that a commission on each transaction be paid to the owner of the platform that sold the NFT.
The NFTs can also provide an “opportunity” to enhance relationships with fans, which once again COVID has impacted. Due to the inability to attend sporting events during lockdowns.