The growth of cryptocurrency and blockchain transcends the financial market and is becoming a key element in the fan engagement experience in Australian sport.
We have seen everything from well-run AFL clubs trialling what NFT fan tokens signify for their fan engagement to rugby codes considering the idea of rewards in a crypto-like way.
The sports ecosystem and gambling hubs, including Jackpot Sounds are commencing the process of introducing digital assets into the matchday experience.
NFTs and Fan Engagement
Various AFL and NRL teams have released ‘limited-edition’ NFTs that allow fans some level of exclusivity to club content, experiences, merchandise, or even a selection in respective club decisions.
NFT collectibles provide a new layer to fans engaged in digital, or younger fans, of being connected to their club, something that existing membership processes or programs could not address.
“NFTs allow a fan to have a piece of their sports club digitally,” noted Lachlan Greene, a sports marketing consultant in Melbourne, “It’s legitimately based on experiences and value outside of the sports event itself.”
Cryptocurrency Payments and Tickets
Clubs are testing to use crypto payments, for ticketing and merchandise, and using the functionality of incrementally introducing the fans use case of purchasing merchandise, or a ticket, with Bitcoin or Ethereum or some form of digital currency.
This uptake has been low, however, as a trend it seems there is compliance and willingness for this part of the sporting interface to embrace a blockchain as payment mechanism, acknowledging coin, gaming and convenience.
Sponsorships and Crypto Connections
The relationship between crypto and sporting codes is about more than fan engagement. There is emerging evidence of communities of engagement with sponsors that feature a blockchain partnership.
Sponsorship deals and partnerships are still a bit less public, and primarily of course branded engagement, sponsorships other low-touch marketing. They also provide revenue sources, and by abusing assets, they create potential pathways to the digital relevance the respective clubs seek.
Opportunities and Risks
In principle, there are several exciting use cases for engaging with fans using crypto. But, there are also boundaries and also complexities.
In Australia, regulatory meaning is still emerging, and clubs are adapting to and complying with regulations across payments and corporate promotions. Fans should also be aware of the volatility and risk associated with crypto.
“There is so much opportunity; however, clubs need to balance the responsibility of innovation. Digital assets provide the potential for player engagement, and that’s fairly context-dependent,” advised Dr. Alicia Rees, a sociologist within the sporting space.
The Future of Crypto in Australian sport
In the future, crypto will is increasingly part of fan engagement experiences. More clubs will explore fan tokens systems and digital memberships in conjunction with existing membership processes. In addition to exploring blockchain rewards, we also offer traditional memberships.
For fans, this could manifest as richer engagement and even more personalised ways to engage with their team, or even vote on team kit designs or unlock behind-the-scenes paid content, while still conversing them or participating in the digital economy. Alongside digital transformation in Australian sport, crypto is a part of that digital transition also.
When talking about crypto, fans and clubs and sponsors are developing some awareness and understanding, and digesting that blockchain, in essence, is not just a transactional mechanism, but how to build a sense of community, and engagement and experience of the game.
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