How fan tokens and NFTs are redefining sports fandom

Till a few years ago, sports fans could only show their support by wearing their favourite team’s jersey or cheering from the stands, or by wearing coloured masks on their faces. They would purchase some of the team merchandise, participate in contests, and, if lucky, get a quick selfie with one of the players!

But today, with the advent of blockchain technology, these conventional boundaries have expanded, providing a more engaging experience to fans. With a smartphone and a digital wallet, fans can now own a piece of their favourite team, get access to exclusive benefits, and even be a part of the team's decision-making process!

I first noticed this change when a friend told me how he could vote for his favourite football club’s bus design by using his digital token. That’s when I realised how Non-Fungible Tokens (NFTs) and fan tokens were changing the way sports authorities and teams were engaging and interacting with their fans.

Fan tokens: Turning passion into power

Imagine having a digital asset that not only demonstrates your support and loyalty to your team but also offers you access to special benefits like VIP meet-and-greets, pre-sale tickets, or even a vote in club decisions. Fan tokens provide just that.

Thanks to the introduction of fan tokens by major football clubs like FC Barcelona, Paris Saint-Germain, and AC Milan, fans can now take part in interactive polls that influence small club decisions, such as choosing the stadium's music or the designs of limited-edition merchandise, rather than just watching as they watch.

Fan tokens today are turning to be a potent tool for revenue generation in addition to being used for engagement. With new-age technology, teams can communicate with their global fan base outside of their home stadium. A fervent fan in São Paulo or Tokyo can experience the same level of involvement as a Manchester season ticket holder. Additionally, because these tokens are tradeable, demand determines how much they are worth, which further gamifies the fan experience.

More significantly, fan tokens strengthen the bond between teams and their fans on an emotional level. Teams create a sense of community by allowing supporters to directly influence club operations, even in tiny ways, converting casual supporters into devoted lifelong supporters. Previously, this type of interaction was not feasible.

Back home in India, sports like cricket and kabaddi are beginning to embrace fan tokens as a way to deepen fan engagement. IPL franchises like CSK, MI, or KKR could leverage these digital assets to offer supporters voting rights (e.g., jersey design, team anthem, etc), exclusive meet-and-greets, or early access to tickets.

In Pro Kabaddi and ISL Teams, which have passionate regional fanbases, tokens can allow fans to engage more deeply through community rewards or behind-the-scenes content.

Similarly, in esports and with the rise of fantasy sports platforms like Dream11, fan tokens can integrate with gamified elements, offering rewards for engagement and predictions.

From memories to assets: The power of NFTs

While fan tokens offer access to exclusive benefits, NFTs offer ownership, allowing fans to purchase, sell and trade legendary sports moments, such as Steph Curry's deep threes or LeBron James' slam dunks, on NBA Top Shot. Athletes and teams have realised that their brand is about telling stories, not just about matchday.

Additionally, NFTs enable them to capture moments in a manner that was previously impossible with conventional memorabilia. A digitally-signed NFT of a game-winning goal is more durable than a signed jersey.

NFTs have also provided clubs and players with additional sources of income. However, the most crucial aspect of these is the increased fan engagement and loyalty. Getting VIP seating at an upcoming game, a behind-the-scenes video of the legendary sporting moment or rare merchandise–these experiences are not only captivating but also addictive!

Enhanced fan engagement

Sports properties are clearly moving towards a more decentralised, participatory fan experience, even though the use of NFTs and fan tokens is still in its infancy. And the rate of change is just increasing. Teams are now looking into developing digital passes granting access to exclusive benefits. With NFTs incorporated into ticketing, fans will be offered extra benefits based on the number of games they attend. Such tokenised tickets will, in effect, act as a lifetime loyalty pass!

Such digital tokens have enabled supporters and fans to actively participate in a team’s journey rather than merely observing it, thereby adding a new level of loyalty! Due to these initiatives, they now feel a sense of recognition and ownership over a team’s performance, enhancing their sense of community.

While there are still challenges with scalability, regulations, and ensuring these digital goods remain valuable to fans beyond speculation, it is undeniable that the sports industry is embracing blockchain, and early adopters will benefit greatly.

If a fan says, “Yeah, but do you own Messi’s game-winning goal?” don’t be surprised the next time you see someone showing off a jersey that has been signed. In this new age of sports fandom, digital ownership might be the ultimate flex.

Dhruv Verma is the Founder and CEO, Thriwe, a reward-based loyalty and customer engagement platform