According to Dapper Labs’ head of partnerships, pro sports leagues have opened their arms to NFTs in the midst of the sector’s brisk growth this year.
According to Dapper Labs, the company behind NBA Top Shot, professional sports leagues are no longer resistant to investigating nonfungible tokens (NFTs) now that the sector is hot.
Caty Tedman, Dapper Labs’ head of partnerships, stated on Monday at Yahoo Finance’s All Markets Summit that the stance of professional sporting organizations suddenly shifted regarding NFTs amid the sector’s booming growth in early 2021, stating:
“The conversation has shifted dramatically, and I believe there is some recognition that there is something here. I’m getting very little pushback now that NFTs are a thing.”
When Dapper launched NBA Top Shot in late 2020, it established itself as a pioneer in officially licensed sports NFTs. Since then, the company has formed alliances with other major sports leagues, including the National Football League (NFL), the Women’s National Basketball Association (WNBA), the Spanish soccer league La Liga, and the Ultimate Fighting Championship (UFC).
Regarding Dapper’s initial discussions with the NBA, Tedman stated that the organization was concerned that NFTs had not yet been proven to work as a means of sports merchandising, stating:
“At the time, it was a lot of explaining, and we spent a lot of time talking with lawyers and people in finance about what it looks like to have secondary revenue.”
You don’t have secondary revenue on merchandise […] what does it look like for consumers to own assets in perpetuity?”
Dapper was “lucky to start with the NBA,” according to Tedman, because the NBA’s associate vice president of Global Partnerships & Media, Adrienne O’Keeffe, was open to exploring NFTs.
According to CryptoSlam data, NBA Top Shot NFTs generated more than $32 million in secondary sales in October, representing a 58 percent increase over the previous month.
According to ULTCOIN365, daily trade volume for NBA Top Shot NFTs increased by more than 440 percent after the project launched its retro “Run It Back 2005–06” packs on Oct. 15.
Despite the surge in October, trading volumes are still far below the February highs, which saw a record $224 million in secondary sales.