Non-fungible tokens, or “NFTs” as they’re commonly abbreviated to, are digital assets that represent real-world objects. Often, they’re bought and sold over the internet using cryptocurrency, and they’re encoded using the same underlying software as many cryptocurrencies. Their one-of-a-kind or very limited nature distinguishes them from a lot of digital creations, which can be reproduced infinitely. NFTs can be drawings, music, and much more.
Although the concept of NFTs first came about around 2012 to 2013, it wasn’t until 2017 that these assets started to gain recognition. The arrival of the Ethereum blockchain was a game changer that provided an accessible platform for launching NFT projects. Its hosting capabilities for NFTs enabled the creation, storage, and trading of them, and since then digital art, real estate, and a variety of other assets have been represented in the form of NFTs.
NFTs have made their way into a variety of industries, including the sports industry. That includes the NBA, one of the biggest sporting organizations on the planet. Below is a look at the popularity of the NBA and at the entrance of NFTs into the organization.
Understanding the popularity of the NBA
The end-to-end nature of NBA games, the high scoring, and the shorter nature of the games than of American football are some of the main reasons the NBA is so popular. The organization is also big on its branding and marketing and is keen to market star players, such as LeBron James, and transform them into household names. Endorsements are an important part of adding value to the league and players and make both more marketable.
Just how popular is the NBA, though? Well, at the start of the 2023-24 regular season, which got underway in October 2023, the organization expected fans from more than 200 countries to tune in to games. International ticket sales reflected a growth in interest from fans across the globe.
Naturally, NBA basketball is popular in the USA too. According to data on the website of consumer and market data company Statista, an average of 1.59 million viewers watched regular season games on TV in the 2022-23 season across the ABC, TNT, and ESPN channels.
The NBA and NFTs
The NBA strives constantly to find ways to engage with its fans. The materialization of NBAs has given the organization a fantastic way to do this. Some fans might not be able to get to games, but they can still feel connected to the NBA and show their support for the organization. The teams starring in the NBA lines will have the most valuable NFTs as some NFTs do command more value than others, however.
One of the organization’s forays into the NFT world is NBA Top Shot. In this marketplace, NBA fans and non-fans can buy, sell, and trade video clips called “Moments.” The rarer the video clip is, the higher its value. The NBA launched the marketplace in 2020 in collaboration with Dapper Labs. Kevin Durant and Michael Jordan are two NBA legends as well as high-profile investors in NBA Top Shots.
The Top Shot Moments aren’t the only NBA NFTs out there. The Association NFTs are a set of dynamic collectible NFTs that change over time, based on player and team performance. At least 30,000 of them were created during the 2022 playoffs.
The opportunity for NFTs
NFTs are a major way to enhance the NBA brand and bring in revenue for the organization, but not only is the NBA getting in on the action, but also players such as LeBron James. They consider them a way to boost their personal brand even further and also to protect it. Personal branding is important to athletes because it allows them to build their reputation in the minds of fans and sustain it. Athletes can create NFTs to engage with fans further, and by creating the NFTs themselves, NBA stars can protect their intellectual property rights and collect royalties on the sales of the NFTs. This money can then, of course, go towards their retirement.
Meanwhile, for the fans, the NFT is a chance for them to connect with their favorite players. Some would even say they own a piece of art. The technology behind NFTs makes them virtually impossible to replicate, so the fans can feel they own a truly unique piece of memorabilia.
NFTs have grown immensely popular and, like other organizations in the sports industry, the NBA and its stars have also decided to explore the opportunities NFTs offer. As well as generating revenue for the organization and its players, NFTs enhance the NBA brand and players’ personal brand. At the same time, they enable both parties to engage with fans and allow them to own one-of-a-kind pieces of memorabilia.
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