Blockchain use cases in the sports industry

We’ve talked about the blockchain and crypto technology taking over the world of gaming. But there’s another huge industry in which the technology has taken great steps: sports. The sports industry is estimated to be worth around $2.65 trillion. Money is generated by everything from ticket sales, sponsorships, brand deals, merchandise, betting, and viewership - all of these are large industries in and of themselves. 

With such potential and wide-reaching scope globally, it’s unsurprising that blockchain has entered the world of sports. Here are some ways blockchain, and more specifically crypto, is being used across the industry. 

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Ticketing

Ticketing is a huge issue for sports teams and venues. Ensuring they can be bought, transferred, and verified easily is key for revenue and reputation management. Blockchain is a perfect technology to apply to ticketing needs. Blockchain is decentralized, meaning that there is no need to pay for or shoulder the risk of intermediaries and third-party systems. Fans are able to more easily switch tickets between themselves, improving user experience, and being an immutable and secure network means that price and authenticity cannot be argued. Rescheduling is also much simpler when everything is held on the blockchain, for both the users and the organizers. 

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Fan engagement

Whether it’s NFTs, fan tokens, or fan experiences, blockchain offers huge opportunities for better fan engagement. Juventus FC, for example, has a famous fan token to ‘influence the team and earn rewards for loyalty’. Digital collectibles have been created through Non-fungible tokens, offering unique sports memorabilia for dedicated fans. Memorabilia comes hand in hand with authentication, and blockchain is incredibly useful for distinct digital proof of authenticity - the memorabilia industry itself is worth about $5 billion for sports items alone. 

Fans can now make income with fan tokens, earn loyalty rewards, and increase their standing in their fan communities. Being able to feel financially a part of a team through staking and investment gives fans a much closer, more personal connection to their favorite players and organizations. 

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Betting

Crypto is ideal for the fast-moving world of sports betting. Blockchain technology has been utilized across the betting industry to revolutionize the way bets can be done transparently and safely. Transaction speed encourages money flow, and immediate access to money with instant transfers and withdrawals improves the user experience. 

This instantaneous technology is vital for sports betting. Users want to be able to make bets immediately on time-sensitive wagers, without being hindered by transaction bottlenecks. 

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Sponsorships 

Crypto companies and exchanges are picking up major sports sponsorships. Some examples of the most prominent deals include: the Crypto.com Arena in Los Angeles, home to the Los Angeles Kings, Lakers, Clippers, and Sparks; Binance’s partnership with the Confederation of African Football to sponsor the 2021 Africa Cup of Nations; Bybit’s $150 million deal with Red Bull Racing in 2022; and Coinbase as the official crypto partner of the NBA in 2024. 

Crypto sponsorships and sports have had an uneasy relationship over the last few years. In 2021, major sponsorships were at an unprecedented 42 new deals across the year. A large portion of the money exchanging hands that year came through FTX, which had enormous deals with the Miami Heat, esports teams, and Major League Baseball. That all ended when FTX collapsed, and crypto’s involvement in sports dropped drastically. The downturn remained for the next few years as both sides felt each other out. The trend, however, has begun to turn back upwards in 2024. There were more crypto sports sponsorship deals in 2024 than there have been since FTX’s collapse, but it has yet to hit the dizzying highs of 2021.

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Player contracts

While the likes of Lionel Messi or Stephen Curry aren’t signing blockchain contracts just yet, there is a strong use case for blockchain technology being utilized as a way to keep both players and organizations protected and reduce the need for intermediaries. Blockchain streamlines all parts of these administrative tasks, protects the security of the contracts involved, and lowers the risk of disputes. Player contracts with their management agencies and for sponsorship deals are similarly protected and more easily automated, using blockchain technology.