With an estimated $150 billion in annual sales, the sports industry is more vast and expansive than ever. If you are a beginner and are looking for an ideal platform for crypto, an excellent choice is the bitcoin code. In addition, the athletes’ and brands’ consumption habits are constantly evolving, requiring new production and distribution models.
Many industries, from food to sportswear, have recently recognized blockchain’s benefits to their organization. However, the term “blockchain” may not be familiar to many unfamiliar with the structure in which a blockchain operates.
The sports industry comprises stakeholders such as professional players, brands, fans, promoters and others who need a better method of engaging in business transactions. To alleviate the issues currently facing transaction processes within the sports industry, blockchain offers ease of use through its electronic payment protocols while also decreasing costs by removing third-party intermediaries.
Current challenges:
Professional athletes and sports teams often face a business model that is fractured on multiple fronts due to numerous financial transactions that must be completed between the athlete and the sports organization. For example, a sports organization will often have a salary cap or franchise fee to ensure the sustainability of the sport they engage in.
Many costs are associated with professional sports teams and athletes, such as travel, training facilities and other logistical costs incurred throughout their careers. In addition to these costs, there is also the possibility of legal disputes where a dispute may arise around sponsorship rights between the team and its player/athlete or between one of the league’s owners and individual players. These legal disputes take a significant financial toll on both sides, leaving little room to allocate resources to other areas.
Another challenge in the sports industry is the lack of transparency in transactions and records. Many industries today are adopting blockchain technology as a way to provide record integrity while also increasing their efficiency. Blockchain application in the sports industry has provided transparency and trust among all parties involved to determine what expenses are being appropriately transferred, thereby saving time and energy spent on these processes.
Changes blockchain can make in the sports industry:
The sports industry, as a whole, is in dire need of change and optimization. Numerous systems within the sports industry impede efficiency and lead to unnecessary costs. A common challenge that the athletes in the sports industry face are the organization’s ability to receive their share of the revenue generated when a sponsorship deal is struck. Especially noticeable in signing players; many are often overpaid for potential services and are not paid based on productivity or performance.
Blockchain allows all parties to stay up to date with each transaction information and reward each individual based on their contributions to the team/organization. Let’s explore these changes in detail.
No counterfeit tickets and merchandise:
One of the most significant issues plaguing the sports industry is the sale of counterfeit tickets and merchandise. As a result, fans are often left outside the stadium, unable to attend an event or left with a knock-off product they were forced to purchase from a third-party vendor. With blockchain, there is a secure digital register in which all participating parties can set up their sub-registry for their events.
With this system in place, each participant within an event can access their sub-registry and provide tickets for each event they work on. Furthermore, since blockchain technology is distributed among all participants, it means that no one organization owns the system, but all collectively own it.
Fan tokens:
There is tremendous demand from fans to access the events and players they attend. Unfortunately, the amount of access provided to a fan by the organization may not represent their interest in watching the game. In addition, many fans have difficulty using social media accounts and getting into “build your own” teams.
Blockchain technology can streamline these processes, allowing fans to connect with their favourite players individually by allowing them to control their fan tokens and get instant access to them on the team’s social media account. In addition, a process where each player has their token allows for implementing growth strategies and revenue sharing between the various parties involved.
Better quality of sports equipment:
The average lifespan of a sports team is around 10 years. Unfortunately, many teams go through successful seasons only to find themselves in dire financial situations, meaning the team’s management must quickly find a new way to finance their organization.
As technology advances, so do the available alternatives to athletes and sports organizations. The sports equipment industry is one sector plagued with costs, inconvenient sizes, and poor quality due to the high number of components necessary for each item. Most items, such as helmets and pads, boom when their price drops after several years of use. By using the blockchain in their equipment purchases, companies can ensure that the quality of the items will not fall during this time. In addition, if the item is still not broken after several years, it is possible to get a commission from it. It will lead to a steady revenue stream for each team and its management.