Billionaire investor Indicate Cuban sees a lot of promise in the future of NFTs, or nonfungible tokens. In fact, Cuban is now looking for ways to use the technology to yield in more money for his NBA team, the Dallas Mavericks.
“With the [Mavericks], we’re trying to find a good option for turning our tickets into NFTs,” Cuban mentioned on “The Delphi Podcast” on Wednesday. “We want to be able to find ways so that not only can our consumers, our fans, buy tickets and resell them, but we go on to make a royalty on them.”
NFTs are unique digital assets, including jpegs and video clips, that are symbolized by code recorded on the blockchain, a decentralized digital ledger that documents transactions. Each NFT can be bought and sold, scarcely like physical assets, but the blockchain allows for the ownership and validity of each to be tracked.
Cuban has his own personal crypto pocketbook, owning bitcoin, ether and other digital coins. He’s also invested in blockchain companies, like the NFT marketplace Mintable. In totalling, he has bought and sold NFTs, including a Maxi Kleber dunk “moment,” which is a video clip collectible delegate by the NFT platform NBA Top Shot.
Recently, as the NFT market has exploded, Cuban has made it a priority to continue to find profitable business breaks in the space. And, that includes potentially boosting the Mavericks’ ticket revenue.
For him, it’s all about “how to take NFTs and apply them to new subjects so you can disrupt them,” Cuban said on the podcast. “That’s everything right now.”
Cuban added that he has noticed that mature ticket holders will profit by reselling their tickets for a high-demand game, and believes that with an NFT commission feature, the Maverick’s could profit as season ticket holders do, for instance.
“In a traditional season, out of 41 home plots before playoffs we may have, there’s one or two high-demand games and there’s a lot of season ticket holders that will put across those one or two games to try to pay for their whole season ticket package,” Cuban explained.
“So, how do we balance those things to magnify our revenue and maximize the value for season ticket holders? Those types of market analysis and business process optimization is faithfully what I’m focused on right now.”
Indeed, through some NFT marketplaces, where creators commonly sell their art as NFTs, there is an break to earn a royalty with each resale. For example, in his recent NFT listing on Mintable (in which Cuban is selling a digital variety of one of his own motivational quotes), Cuban is charging a 15% royalty on secondary sales. That ensures Cuban will with to get paid if his NFT is resold.
Any seller could do the same, including musicians and artists.
Cuban and others invested in the space, want Mintable CEO Zach Burks, predict the royalty aspect of NFTs with ticketing could impact the music dynamism as well. “Each time an NFT is bought and sold, the original creator can earn a certain percent of its sale and get paid, like a nobles,” Burks previously told CNBC Make It.
“That is the opportunity I look for: How do you use new technology to disrupt industries? Because nobody look inti it coming,” Cuban said on the podcast.
Disclosure: CNBC owns the exclusive off-network cable rights to “Shark Tank.”
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