Tariff doubts push NFL, NBA to bet big on digital merch

Dapper Labs’ vice president of business development, Ridhima Kahn, highlights the increasing relevance of blockchain-powered digital markets in response to tariff volatility impacting physical goods. Brands are reconsidering revenue and fan engagement strategies, turning to digital collectibles as a less risky alternative. This shift is driven by the desire to better understand and engage with increasingly globalized fan bases.

Platforms like Flow, utilizing blockchain technology, offer tradable highlights and commemorative NFTs tied to sporting events. This creates deeper real-life (IRL) fan experiences, such as courtside access or on-field opportunities. The online environment provides faster, more accessible distribution for digital goods compared to the physical market, currently burdened by unpredictable tariffs.

Data shows a positive trend in NFT sales, with NFL All Day and NBA Top Shot generating significant revenue. Total value locked (TVL) on Flow also reached an all-time high, indicating broader blockchain adoption beyond NFTs. Improved on-ramping and off-ramping technologies contribute to a smoother user experience, further driving adoption.

Increased regulatory clarity is boosting confidence in blockchain technology among brands previously hesitant to adopt it. IP-backed collections are proving particularly successful, with NBA Top Shot ranking among OpenSea’s top trending collections. Dapper Labs employs user-focused research and development, directly incorporating fan feedback into product development.

This approach prioritizes fan experience, leveraging blockchain to deliver unique, personalized, and globally accessible collectibles. Digital collectibles offer advantages over physical goods, including personalization, real-world access, and long-term loyalty rewards. They are also remixable, lightweight, and inherently global.

While Dapper Labs doesn’t anticipate the demise of physical goods, they view digital collectibles as a supplementary revenue stream resistant to tariff volatility. The ease of global access and trading within digital platforms offers a more engaging experience compared to the limitations of physical goods markets. The future of fandom, according to Kahn, lies in mobile accessibility and a continued expansion of brand engagement within digital spaces. The key to success will be offering tangible value and utility to fans, bridging the digital and physical worlds.