The Football Association (FA) 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 FA has announced on its official website that it has issued a proposal request to find a long-term NFT platform partner. The association plans to establish a new long-term NFT platform.

The combination of sports and Web 3 has been maturing in the past few years, with growing interest from the market and consumers. 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 combining sports and Web 3, examine the reasons and scenarios for their successful integration, and explore how they interact and influence each other, as well as share potential future business scenarios.

Current Scenarios of Sports and Web 3 Integration

The sports industry is already closely intertwined with the internet, with Web 2.0 having changed the way fans consume sports. The impact of Web 3.0 on sports will continue in the future. In recent years, major sports organizations have embraced Web 3.0 technologies and introduced cutting-edge technologies to create innovative experiences. The current outstanding categories of Web 3.0 sports-related projects are:

1. Traditional Sports NFTs

As early as July 2020, the NBA partnered with Dapper Labs to launch a series of officially licensed NFTs. These NFTs were mainly used to highlight individual athletes' achievements and commemorate key games and other significant moments.

The NBA propelled NFT trading cards to new heights through the NBA Top Shot platform, where users actively buy, trade, and engage with NFT player cards or NFTs based on signature moves by star players. The platform gained millions of users and generated over $700 million in transactions within the first eight months of its launch. As of May 2022, NBA Top Shot has surpassed $1 billion in sales.

In addition to NBA basketball, NFL (National Football League) partnered with Dapper Labs to launch NFL All Day in August 2022. Dapper Labs also has similar partnerships with UFC (Ultimate Fighting Championship), LaLiga, and the English Premier League. Major official sports associations or clubs are involved in the NFT market in different forms, either by collaborating to release NFTs or building NFT trading platforms to connect with fans.

2. Web 3 Sports Games

The football gaming platform Sorare became popular after its launch in 2019. It represents football stars through NFTs, allowing players to purchase officially certified NFT virtual football player cards on the Sorare gaming platform. Players can act as team managers and create custom dream teams. They can also participate in various football competitions on the platform and win new cards and ETH rewards. This Web 3 football game promotes interaction among players and fans in a new way.

According to public information, Sorare has completed a total of 3 rounds of funding. In 2020, it completed a $4 million seed round, followed by a $50 million Series A round in 2021. In the same year, it raised $680 million in Series B funding led by SoftBank (with a valuation of $4.3 billion), breaking the record for the largest funding amount for a French tech company.

As of July 23, 7 years, the Sorare gaming platform has accumulated a total of 3.7 million players and expanded its game content to include NBA, MLB, and more. Currently, SorareThe Sorare club has already partnered with over a hundred clubs, and Sorare continues to collaborate with superstars. For example, French football player Kylian Mbappe has served as a spokesperson for Sorare, vigorously promoting and popularizing the platform. This has attracted a large number of traditional football fans from Web 2 to join Sorare, embarking on their Web 3 journey.

3. XR Live Events

With the rapid development of XR technology and the impact of the pandemic in recent years, there is a growing demand for XR live sports events. The integration with Web 3 allows users to have an immersive experience similar to being present in the stadium and also enables them to obtain valuable NFT tickets that have commemorative significance, and even special NFT series. For example, last year, the Serie A league live-streamed the AC Milan vs. Fiorentina match on the metaverse platform Nemesis, becoming the first global metaverse live sports event. UEFA also organized an esports bid competition for teenagers on Roblox, aiming to communicate with young people in an interactive way through metaverse sports events. XR boundary-less sports experiences are being promoted worldwide. The application of this technology includes metaverse live-streaming, which provides audiences with a more convenient and immersive viewing experience through technology.

4. Brand Endorsements

In 2021, Crypto.com, a cryptocurrency platform known for its crypto credit card, spent $700 million to purchase the naming rights of the iconic sports arenas, the Staples Center in Los Angeles, for a period of 20 years. It is now called the Crypto.com Arena. As for bankruptcies and collapses,FTX also made a strong strategic layout in sports and signed a 19-year, $135 million naming rights agreement in March 2021, renaming the Miami Heat's home arena as "FTX Sports Arena." In an advertisement by famous sports equipment manufacturer Adidas during the Qatar World Cup, a boring monkey NFT character appeared alongside soccer stars Lionel Messi and Karim Benzema. Additionally, mentioned earlier, Kylian Mbappe endorsing Sorare, many star players have collaborated with Web 3 platforms, expanding the influence of Web 3 and platforms, and creating new ways to interact with fans. Web 3 offers advantages in combining sports. In terms of fan engagement and tokenization, Web 3 allows fans to interact 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 participation and loyalty. Fans can use these tokens to participate in polls, games, and even influence team decisions. This provides new revenue sources for sports organizations and offers fans a more personalized experience. In terms of ticketing and merchandise sales, Web 3 technology can make these processes safer and more efficient. Blockchain-based ticketing systems can prevent fraud and scalping, while also allowing for transparent and decentralized ticket resale. Similarly, blockchain-based sales systems can ensure the authenticity of products and facilitate seamless transactions between buyers and sellers. For athletes, Web 3 allows them to have more control over their careers and tokenize their personal brand, both in terms of their exceptional athletic abilities and the marketing potential injected through digital and AI-driven knowledge systems. This creates another unique way to realize value. In terms of collaborations in the sports market, smart contracts can facilitate contracts between athletes and teams, as well as sponsorships and representation.translation Sports smart contracts are a type of automatically executed digital contracts that allow two or more parties to exchange assets or information in a transparent and secure manner without intermediaries. These contracts are also built using blockchain technology, which can create tamper-proof and immutable transaction records. This enables complex multidimensional business collaborations to become more efficient, transparent, and form a clear business network while maintaining high security and increasing value for all parties. In terms of data information, Web 3 can provide a more transparent and decentralized system for collecting and analyzing sports data. Blockchain-based data storage and analysis can prevent data tampering and provide fair compensation based on athletes' performance. This can facilitate new forms of sports betting and prediction markets that are more fair and equitable, accepted by both speculators and fans. It is even conceivable to utilize DAO governance in the sports industry, allowing fans and stakeholders to participate in decision-making and profit-sharing, using Web 3 technology to achieve a more fair distribution of power and wealth in the sports industry, and establish a more democratic and decentralized governance system. Possible future business models Many officials mentioned in interviews about their collaborations with Web 3 platforms, stating that such collaborations contribute to generating new long-term revenue and reinvesting it into the games for the benefit of the sport itself. They hope to create new interactive ways for fans by utilizing the latest blockchain technology, attracting more new audiences and fans. There will inevitably be more future business collaboration models, but ultimately, they will revolve around two key elements, fan base, and matches. Here are a few potential options: 1. VIP by Address By using an address, individuals can participate in all sports events, including NFT tickets, NFT star collectibles, Web 3 sports games, Web 3 sports forums, and more. When a project connects almost all Web 3 sports-related project data, it can form an address data for users. Based on various dimensions of this address data, such as the number of tickets owned, the quantity and value of NFT collectibles, the number of games participated, level, wins, activity level and rank in the forum, a VIP Rating. VIP The higher the level, the corresponding loyalty and passion of the fans, and even the division of different tracks and clubs.

2.Watch to Earn

Combined with the mature live broadcast technology of sports events, users can earn rewards by watching matches online. This can also be combined with NFT event tickets, as well as decentralized prediction and betting, to provide users with convenient integrated services. Watching matches is more convenient, can generate income, and can use the earnings for betting. It is believed that it will be very popular and have a large market.

3.DAO Governance

In the future, it is possible to have teams owned by Web 3 DAO organizations, which means that DAO organizations become shareholders 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 distribute the earnings to all members according to the contract. Fans are more attentive and loyal to the team, and govern the team in a democratic and autonomous way, which can create value for their beloved objects and receive dividends. I believe it will greatly attract many fans.

Conclusion

The impact of Web 3.0 on the sports industry is extensive and profound, and the combination of the two is also a development trend of technological progress. The ability to connect with fans and followers in real time and deeply understand customer behavior has changed the operation of enterprises in the sports industry. As we move towards the future, it is obvious that the role of technology will only continue to grow in the business of Web 3 in the sports industry.

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