• Loading stock data...
Sunday, December 22, 2024

BIG3 Remains Bullish About NFTs Amid Recent Crash

  • Co-founder Ice Cube says the NFT launch allowed the league to connect with ‘the biggest names in the space.’
  • The BIG3 took in millions as it sold eight of its 12 franchises via pricey NFTs.
BIG3 NFT
Aric Becker-USA TODAY Sports

The BIG3 unveiled its plans to open its 12 franchises up to sale through NFTs, a concept that seemed like a natural evolution for the 3-on-3 pro league that began play in 2017. 

Within weeks of the April 4 announcement, the BIG3 had sold eight of the franchises for between $550,000 to $625,000. The BIG3 became the first pro league in the U.S. to have one of its franchise purchased by an NFT fund as Wave Financial and other Web3 proponents — including entrepreneur Gary Vaynerchuk, angel investor Kevin Rose, and a group led by rapper Snoop Dogg and co-founder of PayPal Ken Howery — became team owners.

Then the crypto asset market crashed.

“Even though the market took a hit, we still connected with some great communities, like some of the biggest names in the space,” BIG3 co-founder Ice Cube told Front Office Sports. 

The league had maneuvered around the pandemic that forced the cancellation of the 2020 season. But it was time to move beyond the single-entity structure where the BIG3 owned each franchise, much like MLS did for years after it launched. 

“The NFT craze was hitting at the same time [the new franchise model was being worked out],” Cube said. “We were looking at these [crypto asset] communities and asked, ‘How can we be a part of these communities? How can we get these communities in our league? With their enthusiasm and their talent, they could really push the league over the top.’”

The league took in more than $4 million of Ethereium and Dogecoin from the eight new owners. Ether is down more than 30% and Doge is down nearly 40% from the time of the transactions. The league converted about half the cryptocurrencies into dollars shortly after each transaction.  

Instead of tying each team to a city like other pro leagues, BIG3 execs saw the NFT as the best route to sell their franchises — and the league isn’t abandoning that aim.

The NFT market has seen daily transactions and the average sale price crater about 95% from highs on May 1, according to CryptoSlam. A big reason for that — beyond the dips in major cryptocurrencies typically used to purchase NFTs — is that new NFT projects were put on hold.

It takes 25 BIG3 “Fire” NFTs — priced at $25,000 each — to purchase one of the teams, although the price was lower for some teams due to marketing considerations. Most of that tier have been sold, but the BIG3 delayed the launch of its 975 “Gold” NFTs priced at $5,000 each.

Even before digital assets took a hit as of late, there has long been talk about the utility of NFTs, something beyond owning just a piece of digital artwork. BIG3 already promised NFT purchasers preferred seating, press conference access, and other benefits, but when the marketplace reopens, token owners will see more perks. 

Being the majority owner of a BIG3 franchise isn’t quite the same as other sports, but what do you want for a franchise for around $600,000?

The league’s new owners don’t have a lot of sway in the day-to-day operations of the league and — subject to SEC approval — they would only receive 40% of the net proceeds of a future sale of the team. 

It was an opportunity that Wave Financial co-founder Les Borsai wasn’t about to pass up. His fund purchased the Enemies, a team headlined by Nick Young and coached by Gilbert Arenas. 

Borsai followed his company’s purchase of the Enemies by buying arguably the hottest NFT to serve as the team’s mascot: a Bored Ape Yacht Club token. The ape cost 169 ETH, worth about $377,000 at the time of the purchase. The average floor price of BAYC NFTs fell about 20% over the last month.

“The Apes may [have lost value], but that’s not what this is for me.” Borsai said. “The disruption that I saw is that if we are innovative enough, we can monetize. In grabbing the Apes, we are grabbing crypto culture. 

“We bought a basketball team and a mascot and created an entity in all about four hours. When does that ever happen? … Everything about it just really lends itself to a new way of thinking.”

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Featured Today

Indiana's Elijah Sarratt (13) celebrates a touchdown during the Indiana versus Purdue football game at Memorial Stadium on Saturday, Nov. 30, 2024.

How College Football Entered an Unprecedented Era of Parity

The reason the expanded Playoff bracket includes new faces.
Michigan signee Bryce Underwood smiles during national signing day at Belleville High School in Belleville on Wednesday, Dec. 4, 2024.
December 14, 2024

Reader Mailbag: Is the NIL Era Out of Control?

Readers had a lot to say about Ellison and the NIL era.
December 13, 2024

The Top-Secret Operation to Create the Army-Navy Football Uniforms

The two-year process includes dozens of employees, NDAs, and military historians.
Nov 2, 2024; Denver, Colorado, USA; Detailed view of a Wilson NBA basketball held by a referee during the second half between the Utah Jazz against the Denver Nuggets at Ball Arena
December 9, 2024

‘Obvious Weak Point’: Refs Remain an NBA Gambling Concern

A season after Jontay Porter, the biggest risk may not be players.
exclusive

Talor Gooch Using LIV Golf Fortune to Start Building Sports Empire

The golfer has made more than $43 million individually from LIV.
November 13, 2024

Why Liberty Media Spun Off Assets, Shook Up Leadership

Longtime CEO Greg Maffei is stepping down at the end of the year.
December 4, 2024

U.S. Firm Makes $310M Bet on Soccer by Forming Superagency

The U.S.-based investment company makes a significant play in international soccer.
Sponsored

How UBS Crafts Impactful Partnerships Across Sports, Arts, and Culture

As UBS continues to expand its impressive array of sports and entertainment partnerships, the company solidifies its position as a leader in wealth management.
Oct 27, 2024; Seattle, Washington, USA; Buffalo Bills quarterback Josh Allen (17) passes against the Seattle Seahawks during the second quarter at Lumen Field.
October 30, 2024

Buffalo Bills in Talks to Sell Stake to PE Firm Arctos: Report

Arctos already has a slice of Paris Saint-Germain and the PGA Tour, among other assets.
Jul 7, 2021; Tampa, Florida, USA; Tampa Bay Lightning owner Jeff Vinik hoists the Stanley Cup after the Lightning defeated the Montreal Canadiens 1-0 in game five to win the 2021 Stanley Cup Final at Amalie Arena.
October 25, 2024

Lightning Sell at $1.8B Valuation, Nearly Double Prior NHL Record

The Lightning unveiled a multistep and multiyear sale process.
May 24, 2024; Minneapolis, Minnesota, USA; Dallas Mavericks owner Mark Cuban celebrates after defeating the Minnesota Timberwolves in game two of the western conference finals for the 2024 NBA playoffs at Target Center.
October 9, 2024

Why Mark Cuban Sold the Dallas Mavericks When He Did

Cuban sold his majority stake to the Adelson family in December 2023.
Young fans look over Michigan State sports equipment on display during the Spring Showcase on Saturday, April 20, 2024, at Spartan Stadium in East Lansing.
October 2, 2024

Private Equity Firms Buy Rival Hockey Brands CCM and Bauer

Both brands have been around for decades and changed ownership in the same week.