Impact of Web3 on Sports Business and Fan Engagement: Evidence from Blockchain-Based Platforms and Digital Asset Markets

Abstract

Purpose - This study examines how Web3 technologies—including blockchain, non-fungible tokens (NFTs), and decentralized finance (DeFi)—affect the business models of sports organizations and the engagement behavior of fans. The research evaluates both the revenue and loyalty opportunities created by digital assets and the financial risks and regulatory challenges they introduce. Design/methodology/approach - A mixed-methods approach is employed, combining blockchain analytics, big data and social media monitoring, expert interviews, ethnographic observation of online fan communities, and systematic case analysis of NBA Top Shot, Chiliz/Socios.com, Sorare, and related platforms. Theoretical grounding draws on the Stimulus-Organism-Response (S-O-R) paradigm, the Fan Attitude Network (FAN) model, and Social Identity Theory (SIT). Findings - Fan tokens and NFTs create new revenue streams and deepen supporter loyalty through exclusive access, participatory governance, and gamified interactions. However, empirical evidence reveals high price volatility, speculative investor behavior, misleading marketing, and an unclear regulatory environment that expose fans to financial risk. Emerging markets such as Azerbaijan face additional structural barriers—limited fan culture depth, nascent regulation, and underdeveloped digital infrastructure—that preclude near-term viability of NFT-based fan engagement. Originality/value - This article is among the first to systematically integrate governance, financial risk, and regulatory dimensions of Web3 in sports within a single framework, moving beyond prior work focused narrowly on marketing and financial performance. It offers actionable implications for sports organizations, regulators, and platform developers. Research limitations/implications - The study is constrained by the rapidly evolving nature of Web3 technologies, jurisdictional variation in regulatory frameworks, and limited blockchain data accessibility for some platforms.