John Kirwan, Dan Carter explain why sports stars are getting into NFTs

When former All Black John Kirwan sat down to write his autobiography he realised he did not own the copyright to many images of himself during his playing days.

The realisation is a common one for many ex-sporting stars, and a reason why many are becoming interested in NFT technology, Kirwan​ says.

NFTs, or non-fungible tokens, are a type of computer code used to prove ownership of a digital item such as a picture or audio file. Something non-fungible is unique, like a signed album or an original artwork.

Kirwan​ has joined the ranks of Dan Carter, and Daniel Vettori as the latest sporting star to get involved in NFTs, and says the technology allows athletes to take control of their own narrative.

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“When you are a player, the visual side of things ends up being controlled by other people. The experience of creating this NFT felt like taking back ownership,” Kirwan​ says.

NFT Design Works, a Swiss-based, and co-founded by former Black Caps captain Daniel Vettori, say its wants to use NFT technology as a way for players to take ownership over sporting moments they are famous for, but may not own the rights to.

For Kirwan​ this moment is the 1987 Rugby World Cup try against Italy. The NFTs created to memorialise the moment are pictures of Kirwan’s​ face layered with graphics that tell the story of the try, without using any footage or visuals of the actual moment.

Kirwan​ says in the 1980s players were often out of the loop from the business side of sport.

“Back in ‘87 in that first world cup, World Rugby made around $10 million, and players got nothing.”

In the video that accompanies the sale of the NFT, Kirwan​ explains the serious mental health challenges he was facing during the public success of the moment.

“The NFT shows the person that scored the try was full of self-doubt and insecurities. It was an amazing feeling to explain the vulnerabilities behind that moment.”

Kirwan​ himself has not yet invested in NFTs, but is excited by the opportunities the digital technology presents to current and former athletes.

“This technology is a way for players to take control over their personal image. For retired players like me, it is a way to take back some control of the narrative. But for current players the opportunities are even more vast, as players can use NFTs as a new way to connect with fans.”

Carter​, former All Black and co-founder of local NFT business Glorious says today’s professional athletes have a deeper understanding of the business side of sport.

“Careful consideration of contractual obligations is a big part of that, which includes sponsors, rights holders and increasingly, NFTs,” Carter​ says.

A particular exciting element of NFTs is “smart-contracts”. This is when the code behind the NFT is designed to make something happen every time the NFT is traded or used.

A “smart-contract” NFT can have a provision built into the code that means a percentage of its value will be paid out to the rights’ holder, or athlete whose image it represents, every time the NFT is bought or sold.

So unlike their predecessor of trading cards, NFTs could potentially continue to benefit the players they represent long after the player has retired from the sport.

University of Auckland, commercial law associate professor, Alex Sims,​ says while the potential for smart contracts is real, they will only work if there is widespread adoption of cryptocurrency.

“If you try to sell something using money from a bank account and say a portion of the sale price needs to go to the rights’ holder, well the seller can choose not to do that.

“Whereas when you pay for a ‘smart contract’ NFT using a cryptocurrency, the percentage royalty payment goes automatically to the rights holder. There is nothing the seller or the buyer can do about it, it is just baked into the code of the NFT,” Sims says.

But Sims warns the technology can also be used to keep players out of the profit loop.

Trading card NFTs made by the NBA are being bought and sold by fans, with little to no direct profit going towards the players whose likeness the cards depicted, she says.

But overall NFT technology could be a great boon for those who made a living off the support of fans.

“We are seeing athletes, musicians and artists starting to realise if they give a unique NFT to 200-300 superfans, they can make a lot more money than if they try to sell something generic to everyone.”