How Cryptocurrencies Are Currently Changing the Sports Industry
Dallas Maverick owner — and Shark Tank investor — Mark Cuban brought the Mavericks into the crypto world by allowing the team to accept cryptocurrencies for tickets and merchandise. The Mavericks have become the second team to accept cryptocurrencies, the Sacramento Kings were the first team to do this when they started accepting Bitcoin in 2014.
Cuban shed more light on how he was going to execute this when he introduced 5Miles as the new sponsor of the team’s uniforms. This partnership opened the door for Cuban to allow fans to trade CyberMile, Etherum, and Bitcoin cryptocurrencies in exchange for Mavericks tickets and merchandise.
“From a tech perspective I think it’s important to say why I go excited about them,” Cuban said. “And as the app world — the marketplace on apps expand — I think what they are able to do technologically will be great, not just for their users but for Mavs fans and how we adopt new technologies like the blockchain.”
The use of blockchain technologies and cryptocurrencies in sports is still in the infant stages, but Cuban has etched the Mavericks into history by accepting this alternative form of currency.
Furthermore, Cuban has sent a message, not just to the NBA, but to the entire sports industry that blockchain and cryptocurrencies are the future.
“You guys know I’ve always tried to be two steps ahead and that’s where we really got the greatest match,” Cuban said. “We are going to be accepting their CPT Token for merchandise and tickets once we get the payment gateways up and running. I think we have a platform to take in a lot of new and exciting directions in our partnership.”
If you have ever watched an episode of Shark Tank, you’ll understand that Cuban needs to firmly believe in an entrepreneur’s company before he makes an investment. If Cuban believes in blockchain and crypto development in the sports industry, then owners from other teams and leagues should follow suit.
Athletes Could Be Paid in Cryptocurrencies
Cryptocurrency’s applications do not end with the fans of professional sports franchises. Soon we may see players being compensated in Bitcoin or other forms of cryptocurrencies.
Teams could issue their own cryptocurrencies, while the leagues potentially run on blockchain technology. This technology would make for smooth transitions when players are traded from team to team. In the event of a trade, blockchain technology could seamlessly facilitate the athlete’s information and currency via smart contract.
Smart contracts could completely replace paper contracts in professional sports. This would ensure that a player is paid efficiently. Moreover, smart contracts would ensure an athlete’s bonuses were paid if a clause in the contract is met.
Hypothetically speaking, we’ll say, Mike Trout — centerfielder for the Los Angeles Angels — has a clause in his contract that pays him a bonus if he leads the American League in home runs for the 2018 season. The smart contract Trout signed will track his stats throughout the season and will distribute his bonus once it confirms that Trout was the home run leader upon conclusion of the 2018 regular season.
Smart contracts define the rules and regulations of an agreement, just like a paper contract. But what smart contracts can do (that paper contracts cannot) is enforce obligations of an agreement. Which in this hypothetical situation would be distributing Mr. Trout’s bonus if he leads the American League in homers.
The first professional athlete to be paid in cryptocurrency was gold-medal speed skater Ted-Jan Bloemen. ONG Social (a social network and crypto community) signed Bloemen to a sponsorship deal before the PyeongChang Olympics.
A majority of Bloemen’s sponsorship was paid in cryptocurrencies by ONG Social, in addition to the small sum of cash he received upfront.
“This is a first for any athlete,” said Lawrence Baslaw, Bloemen’s agent and president of Baslaw +Associates Inc. “This is really a whole new frontier. It will be exciting to see how cryptocurrency can work for Ted-Jan, in particular, but also the impact it will have on the sports marketing industry as a whole.”
Blockchain-Powered Sports Sponsorships with [Instant Sponsor]
Instant Sponsor will add another dimension to blockchain’s presence in the professional sports ecosystem by creating a marketplace for rights holders and sponsors to connect and exchange cryptocurrency (and fiat money) for sponsorship inventory.
The blockchain-powered Instant Sponsor platform will feature a wide variety of advertising inventory across all sports. From signage in major league stadiums to ad space on an individual athlete’s clothing.
Instant Sponsor has created a cryptocurrency that will be highly beneficial to those who use the platform. Sponsors who purchase Instant Sponsor Token (SPON) will be given exclusive access to premium opportunities and will be able to buy sponsorship inventory five business days before it is publicly available on the Instant Sponsor website.
Furthermore, Sponsors who use the SPON Token will receive an unlimited 25 percent discount on transaction fees, featured opportunities, and the campaign consultant feature (which will automatically match you up with sponsorship inventory that will give you the greatest return on investment).
For all company news and updates, please join the Instant Sponsor Telegram group.
