Everything You Need to Know about NFT Sports Collectibles
NFT sports collectibles are exploding in popularity! What makes these NFT sports cards and other offerings so attractive? Find the answers here.
If you are a sports fan, you have probably heard a bit about NFT sports collectibles. Sports organizations worldwide have started creating NFTs to drive interest, loyalty, and engagement with their fans.
While we’ve discussed sports NFTs before in our blog, we have created this quick guide to the NFT sports collectible to help you get started, whether you are a collector or an organization that wants to create NFTs.
What is an NFT sports collectible?
Just like any NFT, sports NFTs are digital assets that are sold using blockchain technology. In a sense, there’s not a big difference between a sports NFT and baseball cards. Both are highly collectible and valued because of their relative scarcity (more on this later).
The primary difference is that NFTs are digital collectibles. That means, in most cases at least, there is no physical object involved. Instead, the collector gets an asset like a virtual NFT sports card, and the digital certificate of ownership (the Non-fungible Token (NFT) itself). The asset owner can then sell or trade the token of ownership on the open market if they choose to do so.
Not long ago, a handful of sports NFT creators sat with CBS News. They said, “Sports NFTs are selling like crazy because fans have always wanted to buy exclusive tokens tied to their teams — like an autographed jersey or signed baseball bat — and this is just a digital extension of that quest.”
What makes NFT collectibles valuable?
Just like any collectible piece of sports memorabilia, an NFT’s value comes from rarity. If there are only a few Larry Bird rookie cards printed, they are worth more than if there were millions. This is true for NBA NFT cards as well. If the league, or a team, sells a handful of tokens of ownership for a digital card, each token is worth more than if they sell thousands.
Value is a bit complex, as there are many factors that figure in. These might include
Popularity of a player or team
The number of potential tokens
The number of buyers for the asset now or in the future
The overall economy
Another thing that may be a part of the value of an NFT sports collectible is the perks that come with ownership. Some savvy organizations are taking advantage of the security and verifiability of blockchain to couple digital assets and real-world perks. If a collector buys an NFT, for example, they may get access to a special VIP event or membership.
What are some examples of sports NFTs?
The NFL offers a range of NFT collectibles, ranging from limited edition NFT tickets to the officially licensed Rarity League: “a limited collection of unique generative art 3D helmet NFTs, under official NFL license. Rarity League NFTs include over 500 traits of various rarities. This includes team-specific traits as well as highly limited backgrounds and animations.”
We’ve discussed the wide variety of NFT NBA collectibles before, but they range from full-league projects like NBA Top Shot to projects created by individual players. From basketball NFT cards to exclusive fan experiences, the NBA has led the charge for NFT sports collectibles.
While all of the sports leagues in the US have created some type of NFT offering, they are exploding in popularity internationally as well. In Korea, the Doosan Bears sell NFTs and access to a virtual membership club called the Dooverse. FIFA Connect brings fans digital cards, videos, events, and more. Red Bull Racing’s Formula 1 team has created an NFT project as well.
With all of this activity, it’s no surprise that Deloitte projects that sports NFTs will be a $2 billion industry in 2022 and beyond. As they explain, “By the end of 2022, we expect that 4–5 million sports fans globally will have purchased or been gifted an NFT sports collectible.”