By Niovie Constantinou, Contributor
Professional athletes have short careers, often living most of their life off earnings made from the sport. Commercializing their Name, Image, and Likeness (‘NIL’) is essential for financial stability after retirement. Traditionally, athletes commercialize their NIL through endorsement deals and sponsorships. Recently, athletes have begun to use NFTs as a new avenue for commercialization.
Non-Fungible Tokens
NFTs (non-fungible tokens) are unique digital assets stored on a blockchain. They may represent digital or physical items. Popular NFTs include digital artwork, while in sports, NFTs may feature limited-edition video clips of memorable moments or player cards. The value of an NFT is determined by factors like the athlete’s fame, the event’s significance, and demand.
Earning Royalties
Athletes earn royalties each time an NFT using their NIL is sold. They can also mint their own NFTs, creating digital assets to sell. For example, videos of NBA stars like Zion Williamson and LeBron James have sold for over $100,000 as NFTs. These transactions reflect the increasing value of athletes’ NIL in the digital world.
Digital Trading Card
Another popular NFT type is the digital trading card, resembling traditional player cards. One NFT of Erling Haaland’s digital trading card sold for over $600,000, breaking the previous record held by a Cristiano Ronaldo NFT. These digital cards have become an essential part of the growing NFT market.
NFT Popularity
NFTs gained popularity in college sports after July 2021 when the U.S. Supreme Court ruled against the NCAA’s prohibition on college athletes monetizing their NIL. College athletes can now sell digital NIL content, such as images, videos, and music, across online marketplaces using smart contracts. For instance, University of Alabama quarterback Bryce Young launched his own NFT, which is priced at $477.
NFT New and Innovative Way for athletes to monetize their NIL
NFTs have opened a new and innovative way for athletes to monetize their NIL. By creating multiple streams of income through NFTs, athletes can benefit significantly. Tennis legend Andy Murray sold an NFT of his 2013 Wimbledon victory for $177,777, further illustrating the growing influence of NFTs in sports.
Athlete Brand
Athletes’ brands are their greatest assets, and NFTs allow them to capitalize on that brand more than ever before. NFTs also enable younger athletes to build their brand by creating and selling digital content. This fosters engagement with their fans and helps generate additional income.
Economic Innovation
Although the future of NFTs is uncertain, they are undeniably an economic innovation. Blockchain technology is transforming business and interaction. The key takeaway is that athletes now have an exciting opportunity to use their NIL in a new, revolutionary way, generating funds for their futures.
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