Non Fungible Tokens or NFTs are experiencing growth like never before across the world.
These tokens are similar to cryptocurrency, which is gaining popularity worldwide. These tokens are being used to allow people to purchase goods and services more securely and transparently. The number and size of the companies entering the marketplace of NFT in 2021 have increased significantly, with digital transactions involving NFTs growing by 328%. But now, it’s not just big business names like Microsoft that are interested in NFTs as the new digital token transaction has crept into the world of entertainment and sports, giving purchasers access to new experiences.
Kings of Leon released their latest album via two NFTs, with one option giving fans not only the chance to download their latest album, but for six purchasers of their ‘deluxe’ token, it would provide them with a lifetime ticket to the band’s shows at a higher cost. Several Premier League clubs have already adopted fan tokens as part of their wider marketing strategy, with Manchester City being the latest club to introduce them to their supporters. Aside from City, there are West Ham, Everton, Leeds United, and Arsenal amongst the clubs in England who have already taken on board the new way of engaging with their fans. Across the world, clubs like Barcelona and AC Milan are also early adopters.
But what are the benefits for football fans?
Similarly to what Kings of Leon are doing with their fan tokens, these football clubs are using them in exchange for VIP rewards, such as stadium tours, exclusive hospitality options and more, but they’re also being used to get supporters involved in decision-making at their clubs. Juventus, one of the giants of Italian football, has introduced the use of the tokens for fans to choose what song is played in their stadium after each goal; only people who have these tokens can participate in the voting. The tokens offered in limited numbers cost just £2 each to purchase and represents one of the cheapest options for Juve supporters to get involved with their club. Not only is it something the fans gain from, but the financial impact on the clubs is also positive as they take a 50/50 split on the revenue earned. This means the fans are also putting money back into the club’s coffers, which is an attractive prospect to potential buyers.
What could come in the future?
These fan tokens are relatively new in football; they’ve only been around football for around 18 months. So right now, while the option of choosing a song to accompany a goal isn’t something that many would see as a significant decision, clubs are looking to use the platform to give fans the chance to get more involved. In the future, we could see them naming training grounds, stands, putting questions to the owners and more courtesy of their investment in the platform, which would likely further increase interest in fan token ownership.
Overall, with so many clubs worldwide introducing this digitally based currency for their supporters and the number of fans consequently backing the initiative, it looks like fan tokens are here to stay.
