Collecting authentic sports memorabilia is a popular pastime for some die-hard fans. Whether it is an out-of-print trading card, an autographed team jersey, a limited-edition poster or other forms of premium merchandise, supporters want to own a unique piece of their favourite athlete’s or team’s sporting legacy. The exclusivity of these coveted items and the trading that revolves around them make collecting sports memorabilia an investment on its own. In a 2021 Forbes article, the business magazine reported that the pre-pandemic collectibles market was estimated to be valued at US$15 billion (S$20.8 billion) a year.

THE “IN THING” IN SPORTS COLLECTIBLES

Currently making waves in this burgeoning market are NFTs. Deloitte predicts that in 2022, NFTs in sports will generate over US$2 billion (S$2.8 billion) in transactions — double the volume from 2021. The global accountancy firm added that by the end of this year, some 4 to 5 million sports fans globally would have purchased or been given an NFT sports collectible.

The growing trend is buoyed by some of the world’s biggest sports brands joining NFT platforms. Examples include the Spanish LaLiga’s partnership with Sorare, a global fantasy football game where managers can trade official digital collectibles, and the American National Football League (NFL)’s collaboration with blockchain-based virtual trading card platform NBA Top Shot. Even Nike has launched NFT products with RTFKT, which the sportswear label acquired in 2021. Some of its virtual sneakers are selling for six-figure amounts.

Beyond digital collectibles, the NFT space has grown to include VIP access to sports venues, special discounts and exclusive fan sessions with athletes. Photo by Shutterstock.

BREAKING DOWN NFTs

To understand NFTs, you’ll first need to know what a blockchain is. In the simplest terms, blockchain is “a system of recording information in a way that makes it difficult or impossible to change, hack or cheat the system”.

Non-fungible tokens, as the name suggests, are digital assets stored on a blockchain platform with unique identification codes and metadata that distinguish them from each other. This means they cannot be copied, thus providing exclusive ownership to the buyer. NFTs can be anything digital, from music, artwork and fashionwear to in-game items, memes and even tweets. And they can be sold, traded or leased like real-world assets.

Innovators have grown the NFT space beyond digital collectibles. Some of its expanded applications include using NFTs as exclusive passes to real-world events and experiences. For sports fans, this can play out as access to special VIP areas of a sports venue, in-person fan engagement with athletes, and discounts at concession stands.

A MARKETPLACE FOR LOCAL SPORTS NFTs

NFT platform SportsCollective is adding some home-ground advantage with its recent launch. It aims to be Singapore’s answer to an NFT community, with its own cryptocurrency known as $Sports. Fans will be able to purchase the $Sports token (much like Bitcoin and Ethereum) and use it to acquire the NFTs curated by athletes. This could be in the form of super-fan badges, iconic sporting moments, portraits of legendary athletes and signed accessories.

Management consultant Alfred Lye and Singapore Silat Federation Chief Executive Sheik Alauddin co-founded this platform to create more ways for local athletes to generate income and improve the interaction between athletes and fans. “By incentivising athletes through the sales of NFTs, young athletes will strive harder to ensure that they are seen by everyone. This will promote healthy competition and everyone will benefit from this,” said Sheik in an interview with The Straits Times on 3 February 2022.

SportsCollective has since onboarded Singapore silat world champions Farhan and Ferdous Alauddin (sons of co-founder Sheik), as well as SEA Games silat gold medallist Nurul Suhaila Mohd Saiful, to the project. The platform also plans to partner with international associations and seek out other talents in the region.