How Blockchain Can Improve Sports Management

With the emergence of blockchain technology in the sports business, unique applications will be introduced that can alter the entire industry.

FREMONT, CA:  The adoption of blockchain technology in the sports sector can handle a variety of issues, including ticket scalping, drug testing management, and fan involvement. Numerous blockchain-based firms attempt to disrupt the sports industry with novel use cases and services. Additionally, sports clubs can benefit from blockchain technology in the sports business by simplifying athlete data analysis and managing sponsorships more effectively.

The adoption of blockchain technology in the sports industry will have the following effects:

Take Care of Sponsorships: Sports sponsorships are one of the most effective revenue streams for athletes and sports clubs. Additionally, brands leverage sponsorships to increase their popularity. Sponsorships cost brands hundreds of millions of dollars. For instance, brands spent up to $200 million on sponsorship packages for the 2018 Fifa Football World Cup. Managing such vast sums of money can be challenging for athletic clubs and businesses. Brands and sports organizations can conduct transactions via a decentralized ledger powered by blockchain technology. With blockchain technology in the sports business, brands and sports teams can now keep meticulous records of all transactions.

Numerous sports legends have expressed interest in blockchain technology and cryptocurrencies. These athletes, and many others, may be interested in receiving cryptocurrency payments. Additionally, sponsorships can be arranged through the use of cryptocurrencies.

Scalping of Tickets Must Be Reduced: Ticket scalping, or the unlawful resale of tickets, is a significant issue that sports organizations must contend with. Numerous sports fans are duped as a result of ticket resale. According to research, 21 percent of millennials have been victims of online ticket fraud. Additionally, the poll found that more than 36.3 percent of respondents were willing to spend more than double the face value of football playoff tickets. As a result, sports fans may discover that online ticket purchases are becoming increasingly untrustworthy.

The application of blockchain technology in the sports business can create intelligent ticketing solutions. To buyers, intelligent ticket platforms can track and display the chain of custody for each ticket. Such records cannot be updated externally, and every modification will be accurately documented to maintain the data's integrity. This method enables fans to confirm the authenticity of their tickets. Additionally, smart ticket platforms enable purchasers to purchase a limited number of tickets at a time. This method significantly mitigates the effects of bots and scammers who purchase huge quantities of tickets for resale.