By Tim Magnell
In recent years, the sports industry has been buzzing with discussions about Web 3.0 and blockchain. However, it's becoming increasingly clear to me that the narrative surrounding these technologies is wrong. As the CEO of Capital Block, a leading Web 3.0 agency that collaborates with brands like McLaren, Binance and Cristiano Ronaldo, I believe it's time for a complete shift in our approach.
Misconceptions and Missteps
The introduction of Web 3.0 was met with skepticism and confusion among sports enthusiasts. This sentiment was amplified during the cryptocurrency bull run, where digital assets, notably NFTs, saw exponential value growth of pictures of monkeys go from $200 to $500,000!!
Sports organisations saw dollar signs everywhere, and in a bid to capitalise on this trend, hastily introduced products that weren't tailored for their audience. AKA CASH GRABS.
This misalignment led to a negative perception of cryptocurrencies, Web 3.0 products, and digital assets within the sports community, and rightly so!
Contrary to popular belief and the narrative from almost any crypto or web3 company, sports fans aren't necessarily the golden ticket to mass adoption of digital products or any crypto-related products. Despite efforts from major sports entities and celebrities to launch digital assets, we've yet to witness a widespread embrace of these products in the sports realm collective. Of course there are some anomalies such as McLaren and Manchester United (I might be biased). However mass adoption... not....
A Call for Product-Centric Approaches
The crux of the issue lies in the industry's focus. Instead of emphasising the blockchain or any tech aspect, we should be prioritising the creation of genuine products—items that fans genuinely desire and find value in.
The emphasis should be on the product's utility and appeal, rather than its potential for appreciation in value. After all, the majority of sports-related digital assets will never see a surge in value.
Building Communities with Blockchain
Another pivotal shift should be in leveraging blockchain's innate strengths without actually talking about blockchain or any other buzzwords to your audience.
The technology offers an unparalleled opportunity to foster communities. By creating
products on blockchain, organisations can cultivate communities, offering them rewards and
exclusive benefits.
This community can then become a valuable asset, providing engagement opportunities for sponsors and paving the way for unique content tailored for this audience.
However, the journey to harnessing blockchain's potential isn't merely about launching a product. It requires consistent engagement, much like nurturing a social media presence.
The focus should be on community-building and engagement, rather than immediate monetisation.
A New Direction for Sports Organisations
It's imperative for sports clubs to recalibrate their strategies. They must abandon the misconception that blockchain products will instantly yield significant profits. Instead, the focus should be on cultivating a younger, tech-savvy demographic. By targeting the Gen Z audience, aged between 16 to 28, and offering products that resonate with them, sports entities can truly harness the power of blockchain.
In conclusion, the future of Web 3.0 in the sports industry isn't about the technology itself, but about the products it can facilitate. By shifting the narrative and focusing on genuine product creation and community-building, sports organisations can redefine their relationship with blockchain and its myriad possibilities.
By Tim Magnell, CEO of Capital Block