Web3 is the game changer for athlete monetization beyond the field

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The sports industry generated an estimated $403 billion in revenue in 2022, and this revenue is expected to grow to $680 billion in 2028. Despite this growth, financial rewards for athletes remain predominantly in the top percentile.

While lucrative contracts and endorsements are common among the elite, most athletes struggle to achieve financial stability after their careers end. Craig Brown, NKSFB Sports Business Department, highlights a worrying trend: 78% of professional athletes face serious financial difficulties within three years of retirement. This begs the question: How can Web3 address and help change athletes’ monetization patterns during and after their careers?

Worldwide sports industry revenue in 2022, forecast to 2028 (in billions of US dollars) | Source: Statista

Traditionally, athletes have relied on earnings from contracts, endorsements and sponsorships. This model presents challenges not only for post-retirement but also for young athletes at the beginning of their careers. This includes college athletes who may not be able to access payment opportunities due to current legislation or market restrictions.

The short duration of professional sports careers means that the financial security they provide is often temporary. Additionally, many athletes face difficulties in securing significant sponsorships or contracts, especially at the collegiate level or in less commercialized sports, leaving them financially vulnerable during and after their athletic careers. These challenges highlight the need for a more sustainable monetization model that can provide security and stability from the beginning of an athlete’s career until retirement.

Enter web3, which offers athletes opportunities to start earning from the beginning of their careers and continue earning income until retirement. This technology is changing the way athletes make money, providing platforms that support sustainable income streams well beyond their active years. Web3 can provide much-needed solutions to these challenges through blockchain, smart contracts and tokenization.

Web3 allows athletes to transform their personal brands and earnings into digital assets, allowing them to maintain a steady stream of income. For example, athletes can tokenize a percentage of their lifetime earnings or trademarks associated with their persona that fans and investors can purchase, ensuring their athletic achievements are rewarded well into the future.

For example, NBA star Spencer Dinwiddie tokenized his contract to allow fans to invest in his future earnings. Similarly, football legend Lionel Messi and tennis star Naomi Osaka have attempted to launch their NFTs, offering fans unique digital collectibles tied to their achievements.

Smart contracts for reliable copyrights: These contracts; It automates and secures royalty agreements from endorsements, product sales, and media coverage. These payouts are automatically triggered when their name, image or performance is used, providing a steady income from their peak professional years. The potential for Web3 to transform financial relationships in sports is huge. For example, smart contracts ensure that athletes and artists are compensated fairly and quickly for the use of their likenesses. This is not only crucial for maintaining a stable income after prime, but also for preserving and enhancing one’s professional legacy.

Moreover, the implementation of smart contracts unlocks innovative ways for fan engagement. They offer exclusive access to digital collections, personalized experiences, and direct interactions with sports and entertainment heroes. Such developments enrich the fan experience, allowing for deeper connections and more meaningful interactions between fans and their favorite athletes.

Despite the potential of Web3, its integration into today’s world brings with it some difficulties. The inherent complexity of blockchain technology and interfaces may hinder its widespread adoption; It may require significant training for athletes, fans and management teams to use these new tools effectively. There is also a steep learning curve associated with technological literacy, requiring an investment of time and resources from all parties involved. Moreover, the volatility and evolving regulatory environment in cryptocurrency markets brings financial and operational uncertainties. Additionally, environmental concerns associated with the energy-intensive nature of some blockchain operations lead to challenges in sustainability and public perception.

Looking ahead, integrating sports with gaming through web3 technologies could open up another avenue for athletes to earn money. This could lead to the gamification of athletes’ careers, with fans interacting with their favorite sports stars in a virtual environment, using them as characters or players in online games.

Adopting VR and AR technologies can strengthen personal connection and add an educational component by allowing fans to train with digital avatars of their favorite athletes, receiving real-time feedback and tips. As these platforms evolve, they can host virtual events where achievements and interactions directly increase an athlete’s earnings through microtransactions and coin swaps.

This interactive approach will transform passive spectatorship into active participation and create a dynamic new sports economy where every interaction has tangible value.

Web3 is proving to be more than just a new way for athletes to make money; It also strengthens their connection with fans. As the sports industry embraces web3, this is not just a temporary change, it is a fundamental one. It is changing the way athletes manage their careers and secure their futures. From this perspective, web3 is not just another revenue option; is vital for athletes who aim to sustain success beyond the peak competitive years, ultimately bringing the fans within us closer to the players and the beautiful game we love.

Matt Bailey

Matt Bailey is the CEO and founder of GameOn Entertainment Technologies. Matt is an Australian entrepreneur with over 15 years of experience in sports, gaming and web3. After working for a decade in Australia and the US for well-known organizations such as the Brooklyn Nets, Barclays Centre, Cricket Australia and CSM Sport & Entertainment, Matt founded GameOn Entertainment Technologies. Since its launch in 2018, GameOn has raised over $10 million in funding, participated in the Techstars accelerator, and partnered with Comcast, NBCUniversal, and major players in the blockchain space such as Polygon, Hedera, and Arbitrum. The company also cooperates with sports leagues such as LALIGA, PFL and Karate Combat.