The crypto industry offers immense benefits to the sporting sector and is one of the fastest-growing sponsorship categories in sports advertising. In many ways, the general adoption of crypto has spread to several industries, including finance, healthcare, and sports. While a merger between the sports and crypto worlds is not the most obvious at the moment, both sides of the divide can derive immense value from each other in 2024.
On the one hand, general crypto adoption spreading into the sports sector will benefit the digital asset industry. Leagues and sports teams can launch fan tokens that supporters can use to purchase merchandise, participate in polls or other forms of governance, and access special or exclusive events. These teams can develop and launch new crypto coins, each representing a different use for fans and supporters.
Away from fan engagement, cryptocurrency can also be applied to ticketing. Using the blockchain to receive payments and issue event tickets can reduce the risk of fraud as sports leagues plan tournaments for next year. Crypto would simply be an additional channel of payment after fiat.
Sports sponsorship is a global industry worth about $40 billion. Between 2021 and 2022, $3 billion was spent on sports sponsorships by crypto firms. While there might be a few points where crypto and sports meet, crypto brands understand that there will always be a large sporting audience and will try to use this to their advantage in 2024, via sponsorships and advertisements. In February last year, defunct crypto exchange FTX put out an ad during the Super Bowl featuring Seinfeld co-creator Larry David.
In 2024, the sports industry could also use crypto to attract more supporters. History has always been filled with people considered die-hard sports fans, whether soccer, basketball, or cricket. However, this population is starting to dwindle. According to research conducted by Emory University marketing professor Michael Lewis, only 23% of Gen Z identify as passionate sports fans. The number is higher in other generations, rising from 31% of Baby Boomers to 33% of Generation X, and 42% of Millennials. Interestingly, 27% of Gen Zers said they do not like sports at all, compared to 6% of Boomers, 5% of Gen Xers, and 7% of Millenials.
Crypto might be the best way for the sports industry to attract Gen Z and Gen Alpha in 2024. Already, 94% of all crypto buyers are Gen Z or Millennial users, according to a recent study. If sports teams and stakeholders ink more partnerships in the crypto sector, they may be able to announce their presence enough for Gen Z and Gen Alpha crypto users to notice.
Using crypto is also advantageous to individual athletes who can monetize their brands by building and launching social and non-fungible tokens (NFTs). Sports NFTs could include memorabilia like trophies, autographs, and awards or items from team kits, like jerseys, boots, and wristbands. This opens up a new income stream for the teams and the players.
Crypto can also increase interest in sports via crypto casinos. Gen Z and Gen X crypto enthusiasts may be more likely to engage with the sports industry via crypto casinos, betting on beloved teams like the Albany Great Danes men’s basketball or the Hudson Valley Bears.
