The concept of a decentralized Internet based on blockchain technology has long transcended the financial sector, gradually infiltrating sociocultural spheres and highlighting the flaws and inconveniences of the traditional world. While it's possible to adapt to these imperfections, the dream of a more convenient life in an ideal world persists.
In this article, we explore the dreams of athletes – specifically, how they aspire to earn millions throughout their lives, not just at the peak of their careers. We discuss how Web3 offers a way to make this dream a reality.
The Root of the Problem: The "Lifespan" of an Athlete
At first glance, it may seem like the sports industry, projected to reach a market capitalization of $680 billion by 2028, has no problems. Athletes earn enormous sums of money, with many becoming influencers and promoting a luxurious lifestyle, creating the illusion that they’ve hit the jackpot and now live solely for pleasure. But is it really that simple?
Beyond the glamorous facade, the sports career is fraught with constant injuries, overexertion, psychological pressure, and other unpleasant aspects that are not always talked about. Additionally, the career lifespan of an athlete is relatively short. The real challenges begin for champions and top athletes after retirement, often proving more daunting than severe injuries and long recoveries.
On average, a footballer’s career lasts about eight years, not counting injuries that could force them out of the game much earlier. After this brief period of luxury, fame, and elevated comfort, returning to the average world can be a painful experience for many athletes.
Life After the Game: Financial and Other Challenges
Despite the growing market and increasing capital in the sports industry, this wealth doesn’t necessarily trickle down to the athletes. The “lifespan on the field” doesn’t extend, and the physical resources of athletes are depleted, despite costly maintenance procedures.
Traditionally, athletes earn income through contracts and sponsorships. Those who build their media presence can earn additional income from endorsement deals, which can help secure a comfortable retirement. However, the world of sports is harsh, and while some secure multimillion-dollar contracts, others struggle with financial instability and are just trying to survive.
According to Scottish professional footballer Craig Brown, about 78% of professional athletes face significant financial difficulties for three years after retiring. Around 60% go bankrupt within five years, according to surveys. These numbers are substantial and dispel the myth that athletes live in wealth and luxury throughout their lives, simply by playing their sport.
The abrupt decline in income, lack of demand, and cessation of their usual activities exert tremendous psychological pressure on former athletes. Unfortunately, not all of them are able to cope with these challenges, especially on their own.
How Web3 Helps Athletes
Web3 technology offers key advantages – blockchain, smart contracts, and tokenization – that make it easier for leading athletes to manage their earnings in the long term. This new decentralized system allows them to convert future earnings, brand value, or personal trademarks into digital assets.
In other words, an athlete’s image, lifestyle, and career elements can now be turned into NFTs, providing income for years to come. This approach also strengthens connections with fans and increases their engagement.
Here are some notable examples:
- NBA player Spencer Dinwiddie tokenized his contract, allowing fans to invest in his future earnings.
- Lionel Messi and Cristiano Ronaldo released NFTs tied to their achievements. Fans were thrilled, and these sports icons secured a steady income stream.
- UFC stars Conor McGregor and Khabib Nurmagomedov, tennis player Maria Sharapova, golfer Bryson DeChambeau, and many other sports stars have also turned to cryptocurrencies and NFTs to enhance their financial stability.
- NBA player Stephen Curry is actively involved in the Web3 space, investing in the NFT platform Faze Clan. He launched his own NFT collection – “Curry Genesis Collection” – featuring digital sneakers that fans can own and trade.
- Basketball legend Michael Jordan, along with his son Jeffrey Jordan, launched a fan engagement platform, HEIR, built on the Solana blockchain.
Risks of the Cryptocurrency World
While Web3 certainly helps many athletes stabilize their income and manage the financial downturn that often follows retirement, it’s important to remember that the world of cryptocurrencies is not without risks, some of which can be fatal.
Regulation of cryptocurrencies is a particularly relevant issue that athletes must occasionally contend with. For example, in November 2023, Cristiano Ronaldo faced a $1 million lawsuit. The football superstar was accused of participating in the offering and sale of unregistered securities in collaboration with Binance, which is illegal. Rumors quickly spread that Ronaldo supported a platform involved in money laundering, which certainly didn’t do his reputation any favors.
The globally infamous collapse of the cryptocurrency exchange FTX also dealt a blow to the reputations of several celebrities who once promoted it. Defrauded investors filed a class-action lawsuit against celebrities, including basketball player Shaquille O'Neal, football player Tom Brady, tennis player Naomi Osaka, and others.
Thus, while Web3 technology can save many athletes from bankruptcy after their careers end, it can also worsen their situation by tarnishing their reputation if they are unwittingly caught up in illegal crypto trading. Nevertheless, exploring the world of crypto assets is a valuable and potentially profitable step for those who want to stay in tune with modern technology and remain at the center of the action, even after leaving the game.
If you want to learn more interesting facts about crypto then check out our blog! You might like our articles “Exploring the Concept of Decentralized Insurance Platforms” and “Top Cryptocurrency Mining Companies in the U.S.”.
