Non-Fungible Tokens

Abstract

Non-fungible tokens (NFTs) have gained considerable media attention and sparked growing public interest. NFTs are unique units of data recorded on a permanent ledger or blockchain. NFTs are used to record ownership of both physical and digital goods. Prominent sport organizations have embraced NFTs for innovative growth opportunities such as generating revenue via novel digital products (e.g., digital collectibles). For example, the National Basketball Association (NBA) launched NBA Top Shot, an online marketplace to buy and sell digital sports highlights. Sport organizations are exploring future innovation opportunities where there is a need to reliably track and verify authenticity or ownership of digital or digitizable assets. This includes existing sport products (e.g., tickets) and novel fan engagement initiatives. To benefit from NFTs, sport managers need to reconceptualize how sport is marketed and managed in a digital domain. The purpose of this research primer is to acquaint readers with key concepts related to NFTs. Specifically, we provide an overview of NFTs, offer a review of the brief history of NFTs, conceptualize NFTs via parallels with collectibles, and address the speculative nature of the NFT market. We conclude by outlining innovative growth opportunities of NFTs for sport managers and future research directions for sport management scholars.