This story is excerpted from a longer version published on The Bank, a The Sports Bank.net a sports and entertainment news website founded, owned, managed and written by Paul M. Banks. This story appears in Techwire with Banks' permission. He tweets at @PaulMBanks.
The crypto world has now expanded into yet another unexpected arena: The Sacramento Kings have announced that they plan to begin mining cryptocurrency through a partnership with MiningStore.com, a provider of crypto-mining hardware.
This is not their first step into crypto initiatives, however. In 2014, the NBA team became the first sports organization to officially accept bitcoin after partnering with BitPay. It wasn’t long before the NBA’s Dallas Mavericks began to follow suit.
In general, the Sacramento Kings have developed a reputation for leveraging innovative technology, such as using a solar-powered sports complex, Golden 1 Center, to host their home games. Now the Kings are taking a step toward integrating blockchain technology to not only run their business operations, but also to use it for a greater good, starting with education scholarships.
Indeed, the Kings have developed a pattern of embracing new technologies — from being the first NBA team to use Twitter and drone technology, to leading the way in using Google Glass for their home games. In 2016, the team sponsored a contest for tech startups in which finalists could win a number of prizes when pitching themselves to the Kings’ fans, including cash, lunch with a team owner and a consultation with Kings executives.
As the team’s chief technology officer, Ryan Montoya, has commented about the Kings: “We have always pushed the envelope when it comes to innovation.” It’s no wonder that the Kings were named the “most innovative company in sports” by Fast Company and “Most Tech Savvy Team of 2016” by Sport Techie.
Sacramento Kings owner and chairman Vivek Ranadive has pushed for incorporating blockchain technology into the Kings' business operations. In his view, taking advantage of blockchain would make the business processes of the organization more efficient, as has been made evident in various other industries.
The Kings were purchased in March 2013 by Ron Burkle, Mark Mastrov, and Ranadive. In the time since then, the organization has undertaken many technological pursuits, which are most likely led by Ranadive, who graduated from MIT and Harvard, and then carried on to build a successful career with Teknkeron Software Systems and TIBCO Software.
Now, the Kings' new initiative to install mining machines in an indoor arena will use the crypto earnings for creating positive social impact.
The Kings’ partnership with MiningStore enables them to install Ethereum (ETH) mining machines at Golden 1 Center, the world’s most technologically advanced and sustainable arena. The partnership is intended to provide the Kings with the necessary, durable and efficient equipment, making Golden 1 Center the only stadium of its kind to host a Tier 4 data center.
The team plans to mine Ethereum’s ETH cryptocurrency using MiningStore’s Imperium model hardware. They will be the first team to mine digital currency worldwide. Ethereum is a public, open-sourced blockchain-based platform. The Kings’ new mining machines will provide verification for transactions by other coin users. Shares of each transaction will return to the MiningForGood program, determined by complex mathematical problems through mining.
"By installing an advanced data center and infrastructure at Golden 1 Center, we’ve redefined how fans interact with our team and venue — creating a hyper-personalized and interactive experience,” said Montoya, the Kings' CTO.
“We’re able to extend our technology reach for good and support our partners working to make profound change in our community while embracing emerging innovations and technology solutions.”
As the Kings’ new partner and MiningStore Founder JohnPaul Baric said, “The Sacramento Kings are pioneers in exploring cryptocurrency and its potential impact. … We’re thrilled to partner with a forward-thinking organization that looks for ways to create positive change — through technology or sports.”
All crypto proceeds generated by this program will go to a novel multi-year scholarship program called MiningForGood, created to support causes based in Sacramento.
There are a number of opportunities to leverage blockchain technology in sports. One way is to reward loyal, longtime ticket holders, or to store season tickets. Blockchain also creates an opportunity to tap into sports betting by opening up secondary markets. On the other hand, it can also help to prevent such activities.
