Inside Sports NFTs
Scarcity is a key part of NFT appeal, especially for sports. For example, the NBA generated more than $230 million by selling NFT highlights through its Top Shots program. Offered since 2019, the NBA NFTs use blockchain technology to verify ownership. The NBA NFTs have become popular because they connect to celebrities like LeBron James. Dapper Labs, a Canadian blockchain technology company that works with the NBA points out that traders have driven most of the activity, according to a CNBC report.
The Tour Junkies’s approach to its NFT offering is different from the NBA. The company states that it will only launch 18 tokens per year because golf courses usually have only 18 holes.
Furthermore, the business’s NFT is also limited by the way it is initially sold online. To purchase The Tour Junkies’s NFT, one must use Ethereum, a type of blockchain cryptocurrency. Unlike its more popular cryptocurrency rival, bitcoin, there is no maximum limit on the supply of Ethereum. Coindesk, a cryptocurrency media company, reported that the global Ethereum market is worth $364 billion.
The golf NFTs will be sold using an English auction on OpenSea.io, an online business that sells various NFTs. As of May 4, 2021, there are multiple golf items for sale on OpenSale, including a Tiger Woods style image, a Justin Thomas image, and a Bryson DeChambeau limited edition signed by the golfer. The Bryson DeChambeau NFT is offered by a company that works directly with the golfer.
The Tour Junkies’s business decision to limit tokens may impact the popularity of their NFT. In contrast, The Verge reported in March 2021 that there were 800,000 registered Top Shot accounts. While ownership of the NFT is verified by blockchain, the golf company also offers a related physical item to buyers.
The golf business also offers a "physical BOME," a physical golf collectible to buyers of the golf NFT. According to The Tour Junkies website, it is recommended to keep the digital item (i.e., the NFT) and the physical collectible together if they are ever resold. However, it remains to be seen if the combination of physical and digital items will appeal to collectors or traders.
The Golf Memorabilia Business
The size of the golf collectibles market hints at the business potential of golf-themed NFTs. Sportsmemorabilia.com, an online business selling various sports collectibles, had more than 4,000 golf memorabilia items available such as an autographed Tiger Woods golf ball priced at $1,499 and a Jack Nicklaus autographed golf ball for $599 as of May 2021.
In contrast, the online sports company has 9,000 NFL-related products for sale at higher prices. Some of these items include a Tom Brady rookie card priced at $194,724 and a Patrick Mahomes card priced at $163,647. If these differences are any indicator, golf NFTs may not sell for high prices unless traders bid up prices in the market over time.
About the Author
Bruce Harpham is an author and marketing consultant based in Canada. His first book "Project Managers At Work" shared real-world success lessons from NASA, Google, and other organizations. His articles have been published in CIO.com, InfoWorld, Canadian Business, and other organizations. Visit BruceHarpham.com for articles, interviews with tech leaders, and updates on future books.