What are ‘smart tickets’? How 100 fans can use them at Kings summer league games

The Sacramento Kings. already known for technological innovation, are testing the league’s creative boundaries again.

The team announced Monday it is offering NFT “smart tickets” to a limited number of fans starting Aug. 3 and Aug. 4 at Golden 1 Center for the California Classic basketball tournament.

What is an NFT?

Non-fungible tokens (NFT) are digital assets that reflect real-world value and represent unique ownership that cannot be exchanged. Like a mint condition, one-of-a-kind trading card. Or an online ticket to a basketball game.

The Kings collaborated with marketing company Lava and blockchain company Flow, which sponsors NBA Top Shot, to develop an NFT-driven system called “NFT Experience Pass.” Like other NFTs, the application operates on a shared database for recording transactions and tracking assets known as a blockchain.

How fans will use it?

The Kings will select 100 fans to test out the system — giving them funds for food and beverages, and digital art to commemorate the game. All of that is downloaded to customer’s mobile wallets.

“With the Smart Ticket, you have the ability to assign more than just the rights to a seat but also the right to a variety of additional benefits such as merchandise, exclusive experiences and digital collectibles,” said Sacramento Kings owner Vivek Ranadivé.

Are NFTs here to stay?

The sports market witnessed the launch of NFTs this spring with buyers spending millions of dollars on digital collectibles. While demand has died down since, sports teams continue to roll out their own lines of NFT-built content or memorabilia, taking advantage of what is considered the new way to engage with fans.

“This is the future of sports, entertainment, media and all experiential business,” Ranadivé said in a press release. Before purchasing the Kings, he founded the multibillion-dollar computing company TIBCO Software.

The “smart ticket” is the next stop in the Kings’ efforts to integrate the blockchain into their business model. The team earlier partnered with MGM Resort and tech firm Xperiel to create the NBA’s first free-to-play gaming experience “Call the Shot” and introduced crypto-collectibles into professional sports.

Last week, the team launched an auction for 85 NFTs, including a 1985 commemorative pin of the Kings’ inaugural season in Sacramento, a 1985 jersey banner and 2021-22 opening night tickets.

This story was originally published July 27, 2021 at 12:52 PM.