The FA Cup plans to establish an NFT platform to analyze the business model combining sports and Web3

The English Football Association is the main governing body for amateur and professional football in England, and the FA Cup is the oldest football competition in the world. Recently, the official website of the British football organization FA announced that the English Football Association has issued a request for proposals to find long-term NFT platform partners, and the association plans to establish a new long-term NFT platform.

The combination of sports and Web3 has become more and more mature in the past few years, and the preheating and cultivation of the market and consumers have continued to deepen. A recent survey shows that sports fans are now ready to invest in NFTs with real value . This article will analyze the business model of the combination of sports and Web3, analyze the reasons and scenarios for the successful combination of the two, how they interact and influence each other, and share the possible potential business scenarios in the future.

Present Web3 Sports Combination Scenario

Now the sports industry and the Internet are inseparable. The Web2 network has changed the way fans consume sports, and the impact of Web3 will continue to be so in the future. In recent years, major sports officials have readily accepted Web3 technology, began to introduce the most cutting-edge technology, and created the most innovative gameplay. The current excellent project categories related to Web3 sports include:

1. Traditional sports NFT

As early as July 2020, the NBA (National Basketball Association) cooperated with Dapper Labs to launch a series of officially authorized NFTs. These NFTs are mainly used to highlight the individual aura of athletes and commemorate key games and other important moments.

The NBA pushes the star card NFT to the peak of development through the NBA Top Shot platform, where users actively purchase and trade NFT star cards or NFT with star players' signature actions as the core content. In terms of data, within 8 months after the platform was launched, the number of users reached one million, and the transaction volume exceeded 700 million US dollars. As of May 22, NBA Top Shot sales have exceeded $1 billion.

In addition to NBA basketball, in August 2022, NFL (National Football League) will launch NFL All Day in cooperation with Dapper Labs. Dapper Labs also has similar partnerships with UFC (Ultimate Fighting Championship), LaLiga and the English Premier League. All major official sports associations or clubs participate in the NFT market in different forms, or cooperate to issue NFT, or build NFT trading platforms to connect fans.

2. Web3 sports game

The football game platform Sorare became an instant hit after its launch in 2019. NFT represents football stars, allowing players to purchase officially certified NFT virtual football star cards on the Sorare game platform, play the role of team manager, and form their own custom For the golden team, players can also participate in various football matches on the platform, and if they win, they can get new cards and ETH rewards. This Web3 football game promotes communication between players and fans in a new way.

According to public information, Sorare has completed 3 rounds of financing in total, with a seed round of US$4 million in 2020, a Series A financing of US$50 million in 2021, and a Series B financing of US$680 million led by Softbank in 2021 (valuation $4.3 billion), the B round of financing broke the record for the largest financing amount of a French technology company.

As of July 23, the Sorare game platform has accumulated a total of 3.7 million game players, and the game content has expanded to NBA, MLB, etc. At present, Sorare has cooperated with more than a hundred clubs, and Sorare has also continued to cooperate with superstars. For example, French football player Kylian Mbappe once served as the spokesperson of Sorare, vigorously promoting its platform, attracting a large number of traditional Web2 fans to join Sorare, and opening their own. The Web3 journey.

3. XR Live Events

With the rapid development of XR technology and the impact of the epidemic in recent years, the market demand for XR live sports events has been increasing. The combination with Web3 also allows users to experience the same immersive experience as watching games in stadiums, and obtain Authentic commemorative ticket NFTs, and even special series NFTs.

For example, last year Serie A broadcasted the match between AC Milan and Fiorentina on the metaverse platform Nemesis, which became the world's first metaverse live broadcast sports match. There is also an e-sports competition for young people held by UEFA in Roblox, expressing the hope that it will communicate with young people intuitively in the form of metaverse competitions. At present, the XR unbounded event experience is being promoted all over the world. The application of this technology includes the metaverse live broadcast, which brings more convenient and immersive game watching experience to the audience through technology.

4. Commercial endorsement

In 2021, Crypto.com, the cryptocurrency platform known for its encrypted credit card, spent $700 million to purchase the 20-year naming rights of the iconic stadium of the Los Angeles Lakers and Clippers, the Staples Center (STAPLES Centre), and changed its name to Crypto. .com arena.

The collapsed and bankrupt FTX also vigorously deployed its sports strategy. In March 2021, it signed a 19-year naming rights agreement worth 135 million U.S. dollars. The home stadium of the Miami Heat was renamed "FTX Stadium".

In Adidas, a well-known sporting goods manufacturer, an advertisement during the World Cup in Qatar, an NFT character of a boring ape appeared with football stars Messi and Karim Benzema. As well as Mbappe’s endorsement for Sorare mentioned above, many star players have cooperated with the Web3 platform, which not only expands the influence of Web3 and the platform, but also promotes the transformation of the sports world from Web2 to Web3, and creates Many new ways to interact with fans.

Advantages of combining Web3 and sports

When it comes to fan engagement and tokenization, Web3 will enable fans to engage with their favorite sports teams and athletes in new and exciting ways. Blockchain-based fan tokens and digital collectibles can be used to incentivize fan engagement and loyalty. Fans can use these tokens to participate in polls, games, and even influence team decisions. This will provide sports organizations with new revenue streams and a more personalized experience for fans.

In terms of ticketing and merchandising, Web3 technology can make ticketing and merchandising more secure and efficient. A blockchain-based ticketing system prevents fraud and ticket scalping, while also enabling the resale of tickets in a transparent and decentralized manner. Likewise, a blockchain-based sales system can ensure product authenticity and enable seamless transactions between buyers and sellers.

In terms of athletes, more and more superstar athletes have been defined and shaped. Whether it is in terms of the superb professional ability of the athletes themselves or the marketing potential of the knowledge system injected through digital and artificial intelligence, Web3 will enable athletes to Gaining greater control over their careers and tokenizing their personal brands is another unique value realization.

In terms of multi-party cooperation in the sports market, smart contracts can be used to facilitate contracts between athletes and teams, as well as sponsorships and endorsements. A sports smart contract is a self-executing digital contract that enables two or more parties to exchange assets or information in a transparent and secure manner without the need for an intermediary. These contracts are also built using blockchain technology, which creates a tamper-proof and immutable record of transactions. In this way, complex multi-dimensional business cooperation can be made faster and more transparent, forming a business network with a clear context, while having high security and increasing the value of all parties.

In terms of information data, because Web3 can provide a more transparent and decentralized system to collect and analyze sports data. Blockchain-based data storage and analysis can prevent data tampering and provide athletes with fairer compensation based on their performance. This can realize a new form of sports betting and prediction market, which is more fair and equitable, and both speculators and fans will be more accepting of paying.

It is even conceivable to use DAO governance in the sports industry, which can be used to enable fans and stakeholders to participate in decision-making and profit sharing, using Web3 technology to allow a more equitable distribution of power and wealth in the sports industry, and to achieve a more democratic and decentralized governance system .

Possible future business models

Many officials have mentioned in their interviews with the Web3 platform that this transition to Web3 can help generate new long-term revenue and put it back into the game for the benefit of the game. It is hoped that by using the latest blockchain technology to create new ways for fans to interact, in order to attract more new audiences and new fans. There are bound to be more business cooperation models in the future, but after all, it is about fans and competitions. Here are a few future possibilities:

1. Address VIP

You can participate in all sports events according to the address, including NFT tickets, NFT star collections, Web3 sports games, Web3 sports forums, etc. When there is a project that can connect almost all the project data related to Web3 sports, the address data of the user address can be formed. Then according to the various dimension data of the address, such as the number of tickets owned, the number and value of NFT collectibles, the number, level, and wins of games participated, the activity level and level in the forum, etc., the VIP level is scored. Users with higher VIP levels correspond to the loyalty and love of fans, and can even be divided into different tracks, different clubs, etc.

2.Watch to Earn

Combined with the increasingly mature live broadcasting technology of events, users can get rewards by watching games online. This can also be combined with NFT event tickets, and can also be combined with decentralized prediction result quiz to provide users with convenient integrated services. It is more convenient to watch the game, and you can also get income from watching the game, and you can use the income you get to make guesses. I believe it will be very popular and there will be a big market.

3.DAO Governance

In the future, it is entirely possible that teams owned by the Web3 DAO organization will appear one after another, which is equivalent to the DAO organization becoming a shareholder of the team, and fans may become members of the DAO. Operate a team in a more transparent and democratic way, sign contracts with players through smart contracts, and all members' income will be distributed according to the contract. Fans are more attentive and loyal to the team. Governing the team through democratic autonomy can create value for the things they love and get dividends. I believe that many fans are extremely excited.

Conclusion

The impact of Web 3.0 on the sports industry is extensive and far-reaching, and the combination of the two is also the development trend of technological progress. The ability to connect with fans and followers in real-time and gain insight into customer behavior has transformed the way businesses operate within the sports industry, and as we move into the future, it is clear that the role of technology will only allow Web3 to continue to grow in the sports business.