On the surface, you might not think that sports and cryptocurrency have anything in common. The former is a real-life activity while the latter are digital assets that cannot even be physically held. In reality, they have more in common than you’d imagine.
Both are backed up by very passionate supporters and have been subject to controversy at various times. Also, the fact that cryptocurrency can be used in virtually any industry means that it was only a matter of time before the sports world got into the mix. Currently, sports and crypto see a lot of overlap in the following ways:
Sports
If there is one thing sports fans love to do, it’s bet on their favorite games’ outcome. And these days, it is possible to bet with cryptocurrency as opposed to fiat currency. The rise of crypto has seen hundreds of sites pop up that allow users to bet on every sport you can imagine.
Many crypto sports sites allow users to bet on different sports, from soccer to hockey, as listed in valuewalk.com by Kane Pepi. And as both sports and crypto remain profitable, these sorts of sites will only continue to become more popular.
On top of this, there is a lot of variety in the exact cryptos that can be used. Many sites allow users to wager all sorts of tokens. And in some cases, casinos specialize in one specific crypto as opposed to multiple. This is good news for crypto users as they can bet on sports with the token of their choice. If you favor Solana, for example, you’ll find a Solana casino to meet your needs.
Sports with crypto also offers fast transactions, more privacy, more control, and chances of more profits for users, which will likely keep them relevant well into the future.
Sponsorships
Sponsorships are a big deal in the sports world and as crypto sees more involvement in it, money has changed hands on both sides for sponsorship agreements. When it comes to crypto businesses sponsoring sports, one of the biggest examples is the Crypto.com arena in Los Angeles which used to be the Staple Center. But after top exchange Crypto.com paid to have the stadium’s name changed, it made the industry that much more visible.
Around the world, there is a long list of clubs in many sports that crypto companies sponsor. From the Dallas Cowboys to Manchester United FC to the New England Patriots, it is no longer unusual to see sports clubs carrying the logos of companies like BitPanda and Tezos. This has brought crypto to the forefront of sports fans and given various companies more visibility.
Speaking of visibility, it is also not unusual for sports stars to become spokespersons for crypto brands and projects. From David Beckham to Lionel Messi, some of the biggest stars in the world have lent their names and likenesses to crypto exchanges, crypto tokens, investment vehicles, and much more.
This has not, however, been without controversy as when now-defunct exchange FTX closed down and its founders were indicted on fraud and money laundering charges, celebrities like Tom Brady who had endorsed it were put in the hot seat.
But regardless of the controversy, it seems that the mutual benefits of these sorts of partnerships continue.
Fan Tokens
Another way that cryptocurrency has a lot more influence on the sports sector is through fan tokens. These are basically cryptos that are developed by sports teams for the fans. Fan tokens can be used to purchase merchandise and other products associated with the team and can even be traded for a profit. The idea of fan tokens is to give consumers the benefits of cryptocurrency but to attach them to a specific sports team.
It creates a sense of brand loyalty and helps to facilitate participation in the club. Those who hold fan tokens can vote on decisions being made with regard to merchandise design, upcoming events, and much more. Fan tokens are also used as a way to deliver more benefits to fans as some allow their holders to access premium tickets to events, get their hands on limited-edition merchandise, and even meet the players in some cases.
Fans have responded quite positively to the idea of fan tokens and more clubs have decided to embrace them for this purpose. As of this article, the most valuable fan token by market cap is PSG, the official token of Paris Saint-Germain. Other clubs that have launched tokens include Juventus, Manchester City FC, and Barcelona.
Moving forward, we can expect more teams to get in on the action and offer more benefits to fans. This, of course, will further endear sports fans to crypto as a concept, as well as provide a source of investment.
NFTs
One way that blockchain technology has found its way into the sports arena has been through non-fungible tokens (NFTs). These assets have been used to trade pivotal moments in sports among fans. Sites like NBA TopShot have seen original video content of games being tokenized and sold as NFTs for crypto.
By buying them, fans essentially own a piece of history and can feel even closer to the sport that they love. It has created a bridge between teams and fans, who can experience this moment not as abstract events but as tangible assets that can be traded.
And then there is the money aspect. These assets being sold for crypto create yet another revenue stream for the teams who can license sports moments to platforms like NBA TopShot. For those who choose to buy these moments, they essentially become tradable assets that can increase in value over time and become a money-making venture.
Player Salaries
One unexpected impact that crypto has had on the sports world has been in the salaries of players. While they are still in the minority, a few players have asked for a portion of their salaries to be paid in the form of crypto. Russell Okung, a former offensive tackle for the Carolina Panthers, asked for a portion of his salary to be paid in Bitcoin. Other names on the list include Aaron Rodgers and Sean Culkin.
This helps draw a lot of positive attention to the crypto space because if millionaire sports players have a portion of their income put into crypto, it signals to fans that crypto is a worthy investment. Many of these players also went on to endorse crypto companies, which creates a sort of full-circle moment between sports and the world of digital assets.
