As the sports industry moves\ntowards normal operations, several trends developed during the shutdown. This\nmonth we will take a look at those items and view how motorsports may be part\nof this growth.<\/p>\n\n\n\n
The continued evolution of\nsports business model continues to blur the lines between professionals and\namateurs. The growth of social media and expansion of non-traditional media\nchannels presented challenges and opportunities.<\/p>\n\n\n\n
The ability to harness the use\nof these platforms has brought power to athletes as individuals. Traditionally\nit has been through the form of league media events or agency press\nreleases. <\/p>\n\n\n\n
Now, their voices are being\nheard \u2013 unfiltered and directly accessible to the world. Speaking\nout on social issues and being part of activism is accepted as part of who they\nreally are.<\/p>\n\n\n\n
Motorsports has participated on\nmultiple paths \u2013 drivers were responsible to their team, sponsors, and\nfans. This applied at all levels for\nboth professional and amateurs drivers. They\nwould address each audience being respective of their place as invested\nstakeholders supporting racing.<\/p>\n\n\n\n
Amateur sports, specifically\nthe collegiate system is undergoing rapid transformation. Basically, the athletes were not being\ncompensated while being part of structure where media dollars flowed thru to\ntheir academic institutions. The\nhistorical system relied on scholarships to minimal expense reimbursement to reward\nstudents. <\/p>\n\n\n\n
No longer, they will be allowed\nto pursue commercial opportunities. How\nmuch money will be generated is uncertain and navigating the new landscape will\nbe challenging.<\/p>\n\n\n\n
There is no consistency on how\nthis is moving forward. Federal\nlegislation does not exist and states are enacting different laws. Uniform guidelines is critical to providing\noversight in complex areas that are ever changing.<\/p>\n\n\n\n
Name, image and likeness or \u201cNIL\u201d\nmakes up the legal concept of \u201cright of publicity.\u201d <\/p>\n\n\n\n
Athletes will be able to earn\nmoney from their NIL from several areas: lessons, camp, and clinics; product\nendorsements; and fundraising.<\/p>\n\n\n\n
Race car drivers already have\nthe right to generate income in similar ways. \nThey may enter into a personal services agreement with a sponsor or make\nsocial media posts for a specific brand.<\/p>\n\n\n\n
The marketplace with a new set\nof entrants as amatuer athletes have the ability to generate commercial\nrevenue. What direction will licensing\nfees and royalty rates trend affecting their earning potential \u2013 no one is\nquite sure.<\/p>\n\n\n\n
Over the last year during the\npandemic, consumers\u2019 ability to spend disposable income on sports, events,\nraces, games, travel, dining out and other in-person experiences declined. Many chose to spend on hobbies to fill the\nentertainment void. As a result, the market for collectibles \u2014 from sports\ncards to sports cars \u2014 has surged. <\/p>\n\n\n\n
This lead to growth in another\narea of sports finance topic called Non Fungible Tokens, or \u201cNFT\u201d. <\/p>\n\n\n\n
These are digital assets that can\nrange from images to songs to videos to tweets. \nThey are verified through blockchain technology or a chain of digital\nownership records.<\/p>\n\n\n\n
Owning NFTs allows individuals\nto claim exclusive ownership over these items. They can offer a way to monetize\ndigital goods by authenticating their scarcity. \nIn many transactions, NFTs don\u2019t represent the actual asset itself, but\nsolely a record of ownership.<\/p>\n\n\n\n
Motorsports is beginning to be explore\nthe sports NFT landscape. They are willing to embrace this trend can monetize a\ngrowing market and use NFTs to engage a new, tech-savvy generation of fans.<\/p>\n\n\n\n
The Aston Martin F1 team was\namong the first racing organizations to participate in the NFT. They collaborated with partner Crypto.com to\nissue a set of limited items to commemorate the return of Aston Martin to\nmotorsports. <\/p>\n\n\n\n
McLaren Racing is partnering\nwith Tezos to launch a blockchain platform which will be available across it\nseries including Formula One, IndyCar and esports. Fans will be able to participate\nvia team, driver and sponsor digitized memorabilia.<\/p>\n\n\n\n
Nascar driver Landon Cassill\nannounced a sponsorship deal with the cryptocurrency firm Litecoin. The deal is at market rates but payment will\nbe made in the form of digital assets.<\/p>\n\n\n\n
The technical aspects of the\nbusiness of sports is changing rapidly. \nMotorsports is all about speed and is doing its part to stay in the\nrace. <\/p>\n","protected":false},"excerpt":{"rendered":"
As the sports industry moves towards normal operations, several trends developed during the shutdown. This month we will take a look at those items and view how motorsports may be part of this growth. The continued evolution of sports business model continues to blur the lines between professionals and amateurs. The growth of social media […]<\/p>\n","protected":false},"author":5,"featured_media":863,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/posts\/856"}],"collection":[{"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=856"}],"version-history":[{"count":2,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/posts\/856\/revisions"}],"predecessor-version":[{"id":869,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/posts\/856\/revisions\/869"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/media\/863"}],"wp:attachment":[{"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=856"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=856"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=856"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}