The Future of Fan Engagement
How Web3 is Unlocking Billions in New Revenue for Sports Clubs & Brands
Hey, it’s Marc. ✌️
We just published our big flagship report on The Future of Fan Engagement.
This is an abbreviated excerpt.
Sports and entertainment are at a turning point. The traditional playbook—ticket sales, sponsorships, and merchandise—is no longer enough. Fans today expect more. They want deeper connections, real value, and a sense of ownership in the teams and brands they support.
In this report, we’ll unpack:
The shifting fan economy – Why traditional sports business models are leaving billions on the table and how Web3 is changing that.
Loyalty beyond transactions – How blockchain-powered rewards and digital ownership are redefining fan engagement.
Case studies from industry leaders – Real-world examples of teams like the Cleveland Cavaliers and platforms like Uptop leveraging Web3 to drive deeper fan relationships and measurable revenue.
The Web3 tech stack – The key tools, platforms, and strategies that make scalable, frictionless fan engagement possible.
Actionable insights for executives – A playbook for sports teams, brands, and entertainment companies looking to future-proof their fan engagement strategies.
Let’s jump in. 🦈
Watch the Panel with Industry Leaders
Why Brand Loyalty Matters
Loyalty is nothing new. In the United States, the concept dates back to the early 1800s when merchants began handing out copper coins that could be redeemed for goods or services on future visits.
Loyalty is a tool that businesses use to reward and retain loyal customers. And for almost every business, having loyal customers is better than having non-loyal customers.
No business can make money on customers who are chronic switchers. Loyal customers spend more, more frequently, and for longer. The numbers don’t lie: Keeping an existing customer is five to 25 times less expensive than acquiring a new one.
Brand loyalty goes beyond a simple preference. It’s a deep commitment, where customers consistently choose one brand, even when competitors offer similar products or services.
Loyal customers don’t just buy—they:
Make repeat purchases: Trust drives consistency. 45% of loyal customers stay loyal, even after a bad experience. Mature brands derive more than 85% of their growth from their most loyal customers.
Spend more: Loyal customers are willing to pay a premium. A 5% increase in customer loyalty correlates with a 25% increase in profit.
Stay engaged: They interact with the brand beyond just transactions.
Advocate: They recommend the brand to others, expanding its reach. In fact, 86% of loyal customers will recommend a brand.
Loyalty isn’t just about retention—it’s a growth strategy.
The New Fan Economy
Sport Clubs Are Sitting On A Goldmine
The best loyalty programs print money — sports teams are missing out. Programs like Delta SkyMiles generate billions through partner rewards networks, often outpacing the airline itself in profitability. Sports teams could do the same—but they’re stuck in outdated discount-based models that only reward their most loyal customers instead of monetizing their entire fanbase.
Take clubs like Manchester United, Real Madrid, and the Golden State Warriors. These teams command millions—sometimes billions—of global supporters. Yet, their monetization strategies remain anchored in ticket sales, merchandise, and sponsorships that primarily cater to local or hardcore fans, leaving millions of casual and digital-first fans untapped.
Sports fans aren’t just spectators—they’re high-value, deeply engaged consumers. The real opportunity lies in tapping into the full fanbase—not just the diehards. The data speaks for itself:
Live Attendance: 1,300+ major sporting events in 2023 averaged 21,500 attendees per game.
Digital Reach: Sports communities now boast over 6.2B social media followers across platforms
Massive Sponsorship Growth: Global sponsorship spending on the top 10 competitions hit $8.3B in 2024 and is projected to reach $9.95B by 2030.
Yet, sports teams are failing to translate their massive reach into meaningful monetization. The reason? They’re treating fans like passive spectators rather than digital stakeholders in their ecosystem.
The Fan Economy is Shifting—Sports Must Adapt or Lose Billions
The future of sports isn’t just about what happens on the field. It’s about capturing fan attention at every touchpoint—before, during, and after the game. Brands in other industries are moving fast: FMCG giants and service brands are pouring billions into sports sponsorships, recognizing that fans are one of the most loyal consumer groups in the world. But traditional sports engagement is faltering, particularly with Gen Z:
Gen Z is tuning out: Only 38% of Gen Z cares about sports, and 27% actively dislike it—a stark contrast to previous generations.
Live sports is becoming a luxury: Rising ticket prices, parking fees, and concessions are pricing out younger fans.
Streaming and on-demand content dominate: Fans are no longer willing to commit to full-length games when short-form content offers instant entertainment.
Social media is stealing the spotlight: 65% of Gen Z identifies as content creators. They want to co-create, interact, and feel ownership—not just watch.
Cultural shifts: The days of gathering around the TV for a big game are disappearing, replaced by fragmented, hyper-personalized entertainment consumption.
This isn’t just an engagement shift—it’s a massive monetization opportunity.
Case Study: Manchester City’s Multi-Platform Strategy
YouTube: 8M+ subscribers with a £5/month City+ streaming service for exclusive BTS content.
Instagram & Facebook: 110M+ combined followers, focusing on highly shareable player and match content.
WhatsApp: Launched in 2023, 27M followers. Used for cross-promotion, e-commerce, and direct fan interaction.
TikTok: 30M followers, a key growth channel, leveraging short-form, algorithm-driven content to reach younger audiences.
This strategy isn’t just about reach—it’s about control. Clubs that own their fan relationships can monetize engagement at every touchpoint.
The Playbook for the Next Era of Sports Engagement
The solution isn’t just digital—it’s interactive, personalized, and participatory. The most successful sports teams of the next decade won’t just sell tickets and merch. They’ll create digital-first fan economies that incentivize engagement and reward loyalty beyond attendance. How?
Turn passive fans into active participants: Gamified experiences, exclusive content, and interactive digital ownership models will redefine engagement.
Move beyond outdated memberships: Instant, blockchain-powered rewards—whether digital collectibles, early access to content, or VIP experiences—can drive real-time fan interaction.
Monetize global fanbases with Web3, AI, and real-time engagement tools: A fan in Tokyo should have the same access to exclusive experiences as a season-ticket holder in Los Angeles
The sports industry is at a crossroads. The teams that innovate will capture the next generation of fans and create billion-dollar ecosystems beyond ticket sales and merchandise. The ones that don’t? They’ll watch an entire generation walk away.
Whoever Innovates Fastest Will Dominate the Next Era of Sports Business
Entertainment brands have already figured this out. OTT streaming dominates traditional TV, AI-driven content personalization keeps viewers hooked, and fandom-driven engagement has become a revenue machine.
The sports industry must borrow from gaming, entertainment, and Web3 to build always-on engagement models—or risk falling behind. The future of sports fandom isn’t just about watching—it’s about participation, interaction, and ownership. The teams that embrace this shift will unlock billions in untapped revenue. The ones that don’t? They’ll lose an entire generation.
Uptop: Building Loyalty Ecosystems
Traditional Loyalty Systems slow with costly integrations between brands. Delta and Starbucks have to build custom, bilateral integrations just to exchange rewards. Blockchain eliminates that friction—partners can plug in instantly, no middlemen required. Next-generation loyalty systems create an open ecosystem where clubs, fans, and sponsors connect seamlessly.
Enter Uptop. Built on Avalanche, Uptop transforms sports fandom by creating a scalable, blockchain-powered rewards ecosystem where fans earn, own, and trade digital assets. Instead of outdated, locked-in point systems, Uptop gives fans real stakes in the teams and brands they support
For clubs, the real money isn’t in ticket sales or merch—it’s in creating an open rewards network where brands, teams, and fans interact seamlessly. McDonald’s sponsors the Cavs? Now those same loyalty perks work with Real Madrid. One seamless system, endless monetization opportunities.
Here’s how it works:
Rewarding Engagement: Fans earn valuable rewards—NFTs, branded tokens, exclusive experiences—for everyday interactions and purchases.
Real-Time Insights: Uptop’s platform gives brands access to actionable data, helping them personalize offers, boost fan spend, and track ROI.
Blockchain-Powered Ownership: Using Avalanche blockchain to create a scalable, open-loop rewards ecosystem, rewards are owned by fans—redeemable, tradable, and saved for long-term value.
With Uptop, fans aren’t just getting rewards—they’re gaining a stake in the brands they support. This shift from passive consumer to active participant creates stronger fan loyalty and more meaningful engagement.
For brands, Uptop offers a direct path to deeper fan relationships and measurable revenue. Real-time analytics and ROI tracking ensure that every engagement is valuable, allowing teams to fine-tune strategies and increase profitability.
What it tracks:
Purchase Frequency: How often fans spend at partner locations
Spending Habits: Top categories like groceries, restaurants, or retail
Engagement Trends: Online vs. offline interactions and reward redemption
Proof of Fandom: On-chain badges validate and reward loyal supporters
The Result:
Year-round loyalty—even in the off-season
Data-backed sponsorship decisions
Sustainable, scalable fan engagement through blockchain
By continuously refining rewards structures and tapping into referral networks, Uptop ensures year-round engagement, boosting loyalty even during the off-season and providing teams with a sustainable, data-driven engagement model using blockchain technology.
Uptop’s Differentiation from Traditional Loyalty Solutions
Open-Loop vs. Closed-Loop: Unlike traditional loyalty programs, which are siloed and limited to a single brand or ecosystem, Uptop’s open-loop system enables multiple partners to participate, creating broader utility and year-round fan engagement.
Transaction-Based Insights: Traditional sponsorships rely on impression-based data. Uptop shifts the focus to real transactions, providing teams and sponsors with high-fidelity data on real spending and conversions, making partnerships more impactful and measurable.
Seamless, Easy-to-Use Platform: Uptop eliminates the friction common in Web3 solutions by allowing fans to link their existing payment cards. There’s no need for crypto wallets or tokens, making the platform accessible to mainstream users and easy for fans to adopt.
Focus on Sports Fandom: Uptop is tailored specifically to sports teams and leagues, capitalizing on the emotional connection fans have with their teams. This niche focus sets Uptop apart from generic loyalty platforms and ensures more meaningful engagement.
However, the success of open-loop models depends on strong partner networks. While Uptop has successfully onboarded many local, regional, and national brands, securing buy-in from additional partners—especially in smaller markets or with smaller teams—remains an ongoing challenge.
With clear communication and value generation, Uptop helps brands transform fan engagement into measurable sponsor ROI, driving incremental spend through data-rich, conversion-based rewards.
Case Study: How Cleveland Cavaliers boosted fan spend by 40% & generated 1M+ transactions in two months
The problem: The Cleveland Cavaliers wanted to deepen fan engagement and loyalty beyond the game—connecting fans with the team in meaningful ways throughout the year.
The solution: Partnering with Avalanche and Uptop, the Cavs launched Cavs Rewards, a blockchain-powered fan loyalty program that enhances the fan experience with real-world value and rewards.
“We’re building what hasn’t been done before—a scalable, blockchain-powered loyalty network where teams, brands, and fans interact seamlessly. If McDonald’s sponsors the Cavs, that same rewards system works for Real Madrid. One system. Infinite monetization opportunities.”
— John Timoney-Gomez, Co-Founder, Uptop
Here’s how Uptop elevated the fan experience:
Convenience: Fans can link their credit or debit cards to automatically earn loyalty points on everyday purchases.
Reward Variety: Points can be redeemed for tickets, VIP experiences, team merchandise, and exclusive autographed memorabilia.
Seamless Integration: Uptop integrates directly with the Cavs’ ecosystem, powering the NBA’s first open-loop rewards program and connecting fans to affiliate brands in the community, from grocery stores to local restaurants.
Started on October 25, 2024, every Cavs Rewards member gets a blockchain-powered wallet, automatically storing their engagement history. This data is gold—it enables brands to target, reward, and engage fans like never before. Uptop takes fan engagement beyond the arena, enabling the Cavs to track and monetize fan spending off the court. Unlike traditional loyalty programs, Uptop’s open-loop system captures fan activity at scale.
Results So Far:
1M+ transactions rewarded in just two months
40% increase in member spend at participating sponsor locations
Six-figure ROI for the Cavs, with projections to reach seven figures as the program matures
Thousands of fans are participating, with multiple affiliate brands—from grocery chains to quick-service restaurants—on board.
The sports industry is a sleeping giant. The Cavs didn’t decide to build on blockchain—they just needed a way to monetize digital fan engagement. Uptop had the answer, and now they’re pioneering a model that could redefine sports loyalty worldwide.
The best part? Everyone wins: club, fans and partners. Uptop's innovative approach to fan loyalty has proven to be highly effective in driving engagement for partners:
Open-Loop Rewards Model – Just like airlines sell miles to businesses, Uptop lets local merchants (restaurants, gas stations, grocery stores) buy Cavs-branded points. Fans earn rewards by shopping, extending engagement far beyond the game day.
Seamless Card Linking & Purchase Tracking: Fans simply link their existing debit or credit cards to Uptop. Purchases at partner locations automatically accumulate loyalty points, making the process frictionless and encouraging continuous engagement.
Gamification & Digital Badges: Uptop introduces exclusive on-chain achievement badges that recognize different tiers of fandom. These collectible badges give fans bragging rights and enhance their sense of recognition and status within the community.
Referral Incentives: Uptop also encourages fans to refer friends, amplifying the network effect. Each referral increases program adoption, creating a growing, engaged community.
The sports industry isn’t waking up to blockchain because of hype—it’s waking up because the technology delivers. Uptop didn’t choose blockchain for buzzwords; they chose it because it’s the most strategic way to build a fan engagement program that actually works. Better data tracking, seamless scalability, and a frictionless digital experience—blockchain makes it all possible.
How Web3 Is Reshaping Fandom
In 2024, sports teams leveraged blockchain to attract and engage the next generation of fans. Major partnerships are proving that Web3 is more than hype—it’s the future of fan engagement.
Golden State Warriors x Coinbase: Bringing fans on-chain with exclusive experiences, giveaways, and crypto-powered engagement at Chase Center.
Coinbase x Canadian Football League: Elevating the 111th Grey Cup with crypto-driven rewards and unique digital experiences.
Sheffield United x Maneki: Featuring crypto branding on kits and integrating digital fan engagement for the 2024-25 season.
Example 1: ATP Tour
In November 2024, the ATP Tour launched Momentum, offering fans 15 free, match-specific digital collectibles at the ATP Finals. These data-driven NFTs use match metrics to visualize player momentum, blending storytelling with fan engagement—no crypto jargon, just exclusive digital experiences.
75K participants
Fans returned five times during the event
25K fans claimed all 15 items
87% opt-in rate for marketing
“It's tough to say if (Web3) is overhyped when we haven’t seen that many sticky and sustainable use cases yet. For us, Web3 is a pragmatic tool to solve a clear business problem—not about dropping random NFT collections to extract value from audiences”.
— Mark Epps, Director Communications & Web3, ATP Tour
Impact: Direct to Fan Connection. Web3 offers secure, transparent transactions and personalized experiences, removing intermediaries and empowering fans with ownership of digital assets.
Example 2: New York Red Bulls & Sports Illustrated
SI Tickets and the New York Red Bulls agreed to a historic 13 year deal, encompassing stadium rights and exclusive blockchain ticketing partnership. The venue is now known as Sports Illustrated Stadium, ushering in a wave of innovative fan experiences, including a blockchain-based ticketing system starting in 2026.
Blockchain: SI Tickets leverages the Avalanche blockchain to provide secure, dynamic digital tickets that in turn will enhance fan engagement and personalized content and live perks.
Enhanced Fan Experience: New features include a Sports Illustrated Fan Cover experience, a 1,000-person Club SI, and exclusive SI-specific entertainment.
This marks the first blockchain-based ticketing partnership with a major team in the US.
Example 3: Tixbase & Passo
Tixbase, a blockchain-powered ticketing platform, entered a 5-year exclusive partnership with Passo, Turkey’s leading event ticketing company.
They’re addressing key issues in the ticketing industry, including fraud, transparency, and secondary market regulation, managing over 25M tickets annually via its Avalanche-based blockchain, Tixchain.
Impact: Ticketing. Blockchain technology is transforming ticketing by ensuring authenticity and reducing fraud, while also enabling secondary markets for ticket sales.
Example 4: Coachella
Coachella has launched Coachella Quests, a loyalty game powered by Avalanche, blending physical and digital festival experiences to boost fan engagement and loyalty.
Festival-goers can earn NFTs and XP points by completing virtual and on-site tasks, like scavenger hunts or interacting with Coachella’s Discord.
These digital rewards unlock exclusive perks—from VIP access to unreleased music—and culminate in the chance to win a rare Coachella Key NFT with free 2025 festival passes.
Coachella is reinventing fan loyalty by using NFTs and blockchain to build deeper connections and gather insights to enhance future experiences.
Impact: Loyalty. Blockchain-based loyalty programs create transparent and engaging reward systems that enhance fan experiences.
Example 5: Watford FC
Watford FC made history as the first major English football club to offer digital equity through blockchain. Partnering with Republic, the Championship League club has launched a tokenized equity sale via the Avalanche network, allowing fans to own a piece of the club.
Fans become stakeholders: Purchase equity in the club using fiat currencies (USD/GBP), not just crypto.
Exclusive benefits: Token holders gain access to VIP experiences and are eligible for discretionary dividends.
Future token trading: The club plans to enable trading of these tokens, unlocking new liquidity opportunities.
This goes beyond loyalty programs by offering tangible ownership and potential financial returns.
Impact. Community-Powered Ecosystems. Clubs are moving towards fan ownership, allowing supporters to buy digital equity or participate in cooperative models.
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👉 Download the full report here
Feature.io: Connecting Fans to Content
Similar to sports, blockchain-powered rewards, interactive content, and real-time engagement are deepening audience participation—and they’re unlocking entirely new revenue streams.
Sports clubs and brands are spending millions on advertising, sponsorships, and content — but do you really know who’s engaging?
Fan engagement is broken. Brands spend billions on ads that fans ignore. Teams struggle to monetize beyond ticket sales. QR codes? Dead on arrival.
Feature.io solves the last-mile problem of fan and viewer engagement by turning passive audiences into trackable, monetisable customers using Smart Content™ technology and the Avalanche blockchain. No QR codes, no extra steps—just instant, frictionless rewards.
In short: Every viewer interaction turns into a monetizable and trackable moment.
Next-Level Engagement
Sports teams and entertainment brands benefit from deeper fan connections and new revenue streams through premium ad placements that guarantee real-time engagement. Media platforms leveraging Feature.io can unlock higher CPM rates by offering brands verified audience interaction metrics, something traditional digital advertising cannot match:
New Revenue Channels: Feature’s tokenized rewards and blockchain verification turn every watch into monetizable engagement, actionable insights, and fan retention.
Seamless Brand & Fan Connection: Advertisers and sponsors get precise, verifiable audience data, improving campaign ROI and unlocking scalable, personalized rewards ecosystems.
Real-Time Triggers: Sports teams can use stadium presence & streaming behaviours for instant offers.
In short: Feature treats moments and content as a dynamic, programmable asset. Every interaction becomes new revenue, real-time insights, and provable loyalty. This is the next frontier of the engagement economy.
Example: Instand Fan Rewards at Concerts & Music Festivals
You’re at Coachella, watching Drake perform. Before his final song, a push notification pops up: “Vote for Drake’s encore song & win OVO merch!”
You vote, and Feature.io instantly sends a 10% discount to your festival app.
Bonus: The next day, you get a VIP early access code for Drake’s upcoming tour.
Feature.io connects with the official festival app (e.g., Coachella App). Since fans scan their tickets at entry, the system knows who is inside. Instead of just entry, a ticket unlocks interactive perks (exclusive rewards, merch, VIP access). This increases ticket demand, making fans more willing to buy official passes rather than risk scalpers.
This level of first-party engagement data is a game-changer for advertisers and sponsors, who can now prove ad effectiveness and retarget engaged audiences with precision.
Case Study #1: Netflix: Love, Death & Robots Activation
Digital scavenger hunt connected to the Netflix series “Love, Death + Robots”.
Challenge: Boost viewer engagement in a measurable way.
Solution: Feature integrated Web3-powered rewards into Netflix’s campaign for Love, Death & Robots, incentivizing viewers with NFTs as they engaged with the show.
Results:
100M impressions in 60 days with a sub-$250K investment.
ROI through smart content integration and audience insights.
Actionable data on viewer behaviors to refine future campaigns.
Case Study #2: Lollipop Racing: Porsche & Mobil 1 Partnership
Streamed series of an interactive fantasy motorsport game. Created by Feature and written and executive-produced by The Fast and the Furious creator David Ayer, Lollipop combines a traditional episodic series with an interactive strategy game that enables fans to engage with each race and impact the story as it unfolds.
Challenge: Drive fan participation in a branded event.
Solution: Feature gamified rewards for fans interacting with Lollipop Racing content, offering blockchain-backed incentives.
Results:
5M+ impressions and 2M+ views.
78% reward engagement rate.
6.8% viewer-to-user conversion, demonstrating high user retention and participation.
Takeaways:
For brands
Connect through push notifications based on content interaction
60%+ engagement vs traditional ads (~2%)
Know who engaged and who converted
Segment and re-engage fans who interacted
For teams & platforms
More revenue: Feature-enabled ads command e premium
Monetize beyond sponsorships
Enhance fan experience through gamification
The Web3 Tech Stack
Loyalty programs are evolving—and blockchain is making them faster, cheaper, and more scalable. Uptop and Feature leverage Avalanche blockchain to power next-gen loyalty platforms, ensuring seamless, cost-effective engagement for fans and brands.
Understanding the Tech
Blockchain: Automates reward distribution via smart contracts, creating seamless integrations between loyalty partners.
Tokens & NFTs: Represent ownership, access, and rewards—fully interoperable and tradeable. They also contain a ton of data for brands.
Wallets: The place where users store and access their tokens.
Vendor Spotlight: Avalanche Blockchain
Leading “layer 1” blockchain for consumer applications.
Performance & Scalability: Avalanche handles transactions with near-instant finality and low fees, enabling millions of transactions and rewards at minimal cost—critical for consumer-scale adoption.
Customizability: Avalanche supports custom Layer 1 blockchains allowing you to own your stack with tailored governance and regulatory compliance, offering flexibility for Enterprises beyond single-chain platforms.
Multi-Chain Architecture: Avalanche’s design allows parallel chains to operate independently while communicating seamlessly, ensuring efficiency and scalability.
Developer Support: A thriving ecosystem ensures fast deployments and frictionless user experiences.
Brands that build on Avalanche: Coachella, Sports Illustrated Tickets, Suntory, Cleveland Cavaliers, Konami, SK Planet, Solo Leveling, Maple Story.
Key Take-Aways For Execs
Brands and corporates have experimented a lot in Web3, but building lasting consumer loyalty remains a challenge. While token-gated communities, NFTs, and blockchain integrations have shown potential, many initiatives fail to go beyond novelty. Here are a few takeaways that can help brands strategize focusing on personalization, community-driven experiences, and actionable rewards:
Deliver instant gratification: Fans respond to immediate rewards. Offer perks like discounts, exclusive content, or limited-edition collectibles directly after purchases or interactions.
Pro Tip: Use QR codes, NFC technology or instand notifications (cf. Feature.io) at stadiums to trigger real-time rewards for attendees—like a free snack or exclusive merch access.
Build a community: Loyalty isn’t just about points—it’s about creating a sense of belonging. Build a membership model where fans feel like part of an exclusive community, with unique perks like behind-the-scenes access or live Q&A sessions with players or entertainers.
Turn consumer loyalty to brand loyalty: Turn consumer loyalty into brand loyalty by aligning your rewards with your brand’s core values and story. Offer perks that resonate emotionally, like exclusive content, early access to products, or branded experiences that deepen the connection.
Pro Tip: Use loyalty programs to tell your brand’s story—every reward should reinforce why consumers chose you in the first place.
Trace each touchpoint and utilize data: Create touchpoints that keep fans engaged during the off-season, like digital watch parties or interactive social media campaigns. Analyze purchase patterns, event attendance, and digital interactions to tailor offers. Fans are more likely to engage when they feel the experience is built just for them.
Experience over product: Prioritize meaningful social experiences over products. Fans remember how they felt more than what they bought. Create shared moments—like live events, fan challenges, or interactive content—that build emotional connections and deepen brand affinity.
Pro Tip: Design experiences where fans collaborate or celebrate together. A strong sense of belonging drives loyalty far beyond individual purchases.
The future of fan engagement belongs to those who move beyond transactions and build lasting, data-driven connections—because in the new era of sports, loyalty isn’t earned, it’s engineered.
— Marc & team
Ready to build?
Reach out to the best-in-class team at Ava Labs (Avalanche Blockchain) to get started.
👉 Download the full report here