There’s some new and unusual fodder in the golf news this year that may be unfamiliar to many golf enthusiasts: NFTs. Earlier this year, the PGA Tour announced they plan to launch NFTs on digital platforms Sorare and Autograph. Anyone can purchase golf NFT at the NFTGolfShop. What are NFTs, and why do golf companies think there will be a good market for them with golfers?
To begin with, what are NFTs?
This may be one of the most confusing parts of the whole story. NFTs are non-fungible tokens (meaning electronic) that a person can buy, own, and trade. In other words, a person spends money to get ownership of an electronic file. Often these are either small pieces of artwork or exclusive videos.
But why would someone want an electronic file? The online world is finding a range of possibilities for these electronic files. Here are a few examples:
- Some people have online accounts in a “metaverse” which is a virtual reality electronic environment. These metaverses are online environments multiple players can access and exist even when you turn the game or platform off. Think about the popular game Minecraft and how players can connect to online communities and create environments.NFTs can be used as decor or objects for their meta-homes and such.
- NFTs can be used like trading cards. Remember the 1980s when there was a surge of people buying baseball and football cards as investments? Many purchase an image or file because they think it will increase in value. If they’re right, they resell it to make a profit.
- Sometimes NFTs come with additional ownership perks. For example, a golfing company may give owners of their NFTs access to member-only events, exclusive products, discounts, or other benefits. In this manner, they work much like a membership or loyalty program. For golf apparel brand Malbon, owning one of its NFT collection images would make its consumers feel part of an exclusive community.
- Some people use artwork files as their pictures on social media sites. For example, for about $4,000, you could have a digitized picture based on the likeness of Arnold Palmer as your Facebook picture.
How do NFTs benefit professional golfers?
The PGA’s plans include financial rewards to golfers participating in its NFT program by offering their name, image, and likeness. For example, a professional who qualified for the previous year’s FedEx Cup playoff will earn a participation payment based on their performance. Those who finish in the top 30 spots will earn $50,000. Others will earn less, and those ranking last will only earn “pro-rata” royalty payments based on the sales of their NFTs.
Some golfers, like Tiger Woods, are going a different route. He’s a board advisor and equity holder for Autograph, an NFT platform do-founded by football player Tom Brady. For a mere $250,000, you can own a limited edition Tiger Woods Ruby Signed Preseason Access Pass. There are only 12 available, and those owners will be added to an exclusive community on Discord and be granted VIP access to a Limited Edition Tiger Woods Drop.
How do NFT purchases work?
To buy and sell NFTs, you must have a digital wallet connected to a credit card or bank account. The digital wallet allows you to make purchases online. Depending on the platform selling the NFTs, you may need to then use your wallet to purchase whatever online denomination that site takes. Think of it like converting US dollars to Canadian dollars to buy something in Toronto. Many sites deal with an electronic currency called Ethereum, but others use different currencies or will convert your dollars behind the scene without requiring this step at all. You can then use this electronic currency to purchase an electronic file.
If understanding NFTs stresses you out, it’s time to come play a round and relax at the Eagle Point Golf Club.
At the Eagle Point Golf Club, you can forget about the stressors of daily life and enjoy a beautiful day of golfing on our course. Every day should be relaxing and perfect for you, from greeting you with welcoming staff who make you feel like family to serving you a meal prepared by one of our world-class chefs.
If you haven’t visited us recently, we invite you to check us out. Our staff has events lined up throughout the year, such as tournaments for men and women, live music and food specials, and other fabulous entertainment. We’re sure there’s something for your entire family to love at the Resort at Eagle Point.