Impact of Crypto Economy on Sports & EsportsIt’s no longer news that the sports ecosystem has begun exploring digital assets, though a significant number of sports entities tread cautiously into these new financial waters.
Data retrieved from a top accounting and consulting firm Deloitte reveal Europe’s top 20 biggest football clubs by their generating income dropped 12% to $9.9 billion in the 2020 fiscal year, which for most clubs was the 12 months ending in the month of June.
With the sports ecosystem growth limited by the worst pandemic in human history, the sports industry is fast adopting Crypto assets in ensuring the clubs and fans stay connected in a socially distanced world.
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As such the Sports industry is fast adopting blockchain in revolutionizing their revenue streams, fan experience through increased fan tokens, crypto-sponsorships, non-fungible tokens.
Already the pioneer Crypto and some leading altcoins are being incorporated as a form of payment. With sports fans able to buy tickets and merchandise while paying staff, players’ wages, and transfer fees.
Just recently a Dutch football team AZ Alkmaar and Bitcoin Meester formed an exclusive partnership that will see the football team become the first Dutch sports team to keep the most popular crypto assets on their balance sheet and potentially pay players wages in Bitcoin.
Also, traditional offshore sports betting sites can accept crypto-assets for payment.
The repeal of the Professional and Amateur Sports Protection Act of 1992 (PASPA) at the world’s largest economy further created an opening to legalize gambling on a state-by-state basis.
The worldwide esports economy has already generated over $1.4 billion last year.
The traditional sports league has deepened its engagements in e-sport with many sports entrepreneurs’ investing significantly in esports firms.
It becomes unsurprising in seeing blockchain and Crypto exchange service providers also seeking unique ways in partnering with these entities.
FTX exchange is also made one of the biggest deals with an e-sport company ESM in Q1. The partnership is focused on social development in the world and this is impacting.
Sports players are also visualizing cryptocurrency as a good investment. Recently, NFL Star Tom Brady and Brazilian Model Gisele Bündchen entered into a partnership with FTX.
These celebrities are joining the fast-growing crypto exchange as ambassadors, receiving an equity stake and cryptocurrency in exchange for their services.
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