The Sacramento Kings have partnered with a blockchain software development firm to create a game-night auction platform, which launched this week.
“We have integrated blockchain technology into our business across multiple platforms, including our reward program, and now our fans will have the opportunity to securely purchase authentic game-worn merchandise in real-time using an innovative blockchain-based solution,” said the team’s chief technology officer Ryan Montoya.
The team admitted it was “effectively increasing the resale potential for authenticated merchandise on secondary markets.”
Guard Buddy Hield’s game-worn jersey was the first and only jersey to be auctioned as the platform went live Tuesday night. It sold for $1,090 and drew 73 bids. Proceeds were designated for Hurricane Dorian relief efforts. Money raised from future auctions will typically go toward the Sacramento Kings Foundation.
The jerseys are first authenticated through the NBA & MeiGray Authentication Program to ensure they are photo-matched to on-court use before they enter the blockchain system. The majority of the team’s jerseys will still be sold through the NBA/MeiGray platform.
The auction periods run day-of-game, starting just before tip-off through 11:59 p.m. PT. The auction’s highest bidders will receive the authenticated gear, tagged and verified, along with a token, representing proof of ownership and also serves as a Certificate of Authenticity. The digital token creates an official historical record of the item and shows the real-world audit trail as it passes from owner to owner. The token will be owned by the auction’s winner and encoded with verified data on the game, season and player, and will be time-stamped so that fans can prove their gear is genuine.
The platform records the merchandise’s origin and authenticity. Initial transaction history will be recorded, and with the owner’s consent, any future sale will become part of the transparent historical record documented on the blockchain. Fans can pay via credit card, and game-worn auction items will be shipped to them after the game.
“We chose to design this specific implementation with a Kings fan in mind,” said Treum Product Architect Constantin Kostenko. “The Ethereum blockchain technology provides transparency, authenticity, and fraud protection to the fan, but the technical details are hidden to offer a familiar user experience.”
Panini America recently launched ongoing dutch auctions of digital and physical basketball cards tied to blockchain technology.