Blockchain & Sports Part 2: Transforming Athlete Management
Blockchain technology has now been around for 10 years and is finally beginning to be adopted into the mainstream. The sports industry has always been slow to adopt emerging technology, but with leagues like the NBA and the rise of esports, the sports industry is being forced to adapt and embrace emerging technology at a faster rate in order to keep fans engaged. Yes, they may have cool VR/AR fan experiences, but getting a wifi connection in the stadium is still a challenge. While a team may have a cutting-edge expensive CRM system for managing season ticket holders, spending time and money on efficient athlete management systems seems to be a foreign concept.
Cutting-edge technologies, like blockchain, are inevitability going to become best practices in many industries, including sport. Blockchain in sports will transform not only the fan experience but the managerial experience as well. Within the sports industry, blockchain is still considered a technology of the future, and many sports teams still run on old technology. Adopting technology of the future requires a fundamental shift in how things are done. From old technology to future technology, hard copies and wet signatures to digital documents and signatures.
Blockchain smart contracts with Artificial Intelligence assistance can allow teams to manage salary caps and trade negotiations without worrying about the legality of their decisions. The hurdle to get over isn’t whether or not this will help teams, but whether the team is willing to make the switch from using paper contracts, DocuSign, fax machines and spreadsheets to make their deals. Otherwise known as old technology.
At STG we are developing technology of the future — Smart Athlete Management (SAM) on the blockchain. This blockchain technology will not only allow us to bring a much-needed level of trust and transparency to the sports industry, but help to solve serious back of house pain points, thus saving time and energy.
Some serious pain points we have uncovered in customer discovery sessions:
Contract & Trade Negotiations:
Current Process →
- Paper Contracts, Docusign Emails
- Spreadsheets and Whiteboards
- Research hours
- Fax Machines
The Solution →
Smart Athlete Management (SAM) will provide opportunities for clubs to eliminate redundancies in their office and streamline the processes for signing athletes and trading athletes. Smart contracts will secure club, agent and athlete negotiations into a permissioned blockchain. The contract will be able to provide real-time communication between parties, and immediately know the legality of a contract or trade as the contract automatically cross-checks the leagues’ rules and regulations. Thus eliminating the needs to spend hours on hours going over paperwork to confirm or deny decisions. For a further exploration of Negotiations Click Here.
Salary Cap Management:
Current Process →
- Multiple Excel Spreadsheets
- Cross-checking on cross-checking
- Calculators, and teams of analysts
- Email correspondence between teams and leagues
The Solution →
AI (artificial intelligence) gamification will allow GM’s and coaches to adjust their roster and see the immediate impact on their salary cap. The blockchain smart programming can immediately confirm or deny the changes with the rules and regulations that govern the league. Thus managing the team’s salary caps instantaneously. By building teams in real-time in multiple markets across the world, they can see new opportunities that may have been hidden in the past and make sure they are fielding the best team. General Managers will also be able to manage their teams from out of the office in the offseason, without security concerns. For a deeper dive into Salary Cap Management Click Here.
Remittances:
Current Process →
When an athlete wants to send a portion of their salary home for the future or to help support their family the current process involves:
- Sending money through a bank, or team accountant (through a bank)
- Flat Rate + Exchange Rate Margin + Processing Cost go into the fee of processing the remittances
- Fees can be as high as 17.6% to send from one country to another
- May have to remit through up to three countries before the money makes it home to your family
The Solution →
With blockchain an athlete can remit money home directly, automatically and instantaneously — either using cryptocurrency or in any currency they choose. Increased efficiency without bypassing regulation — allowing for the immediate transfer of funds. Drastically reducing costs for athletes and their families, and making the process immediate. For a further understanding of Remittances Click Here.
The technology of the future will allow teams to operate efficiently with ease and transparency. Overcoming the struggle to adopt future technology will not only provide cutting-edge fan engagement experiences but also efficient operations. Learn more about our Smart Athlete Management (SAM) system by scheduling your demo now!
