The blockchain and smart contracts are going to change the way that professional sports contracts are conducted. This is great news for Rugby League players as contract deals become more complex with multiple parties involved. The change is not going to happen overnight but already many new companies are entering the space to utilize this new technology to create a much improved automated solution to contact dealings.
Smarts contracts are in the initial stages of developments but already many applications have been created offering a wide range of services. It is hoped that a solution can be designed to stop player disputes with third parties. TPSs have become common practice in rugby league player contracts due to financial restrictions limiting the amount that clubs can pay. It has led to many problems which by switching to smart contracts can eliminate.
Smart contacts enable different parties to be combined into a single contract which can be designed to carry out actions along with authenticating when terms are met. It eliminates the requirements for a third human party to be involved in the processing of the contract due to it been fully automated. There are many different ways that verification of conditions is met by the blockchain such as a GPS time-stamped photo to prove an agreed appearance at an event.
Once the protocol for the smart contract has been agreed by the parties involved it means that the whole process including the transfer of funds will be handled by the blockchain automatically. This will be a great relief for players as it means once the contracts are signed they can just sit back and let the blockchain handle the whole process on autopilot.
One of the reasons why smart contracts would work well in the world of Rugby League is that it would allow for incentive bonus payments could be fully automated by the blockchain. The system would be able to search reputable online sources to find the data required for the contract and pay out according to the terms automatically.
If Rugby League were to embrace smart contracts it would help to streamline their operation and save a great deal of money on costs once the system has been fully developed. The need for a trustworthy system that helps to eliminate third-party disputes is badly needed and smart contracts can provide that solution.
Over the next decade, it is inevitable that there will be a shift from paper contract to smart contracts running on the blockchain. This technology is perfectly suited to the industry and will transform the way that player contracts are handled. For now, many clubs are sitting on the sidelines seeing how things progress. With huge sponsorship deals expected to be available from new cryptocurrency companies such as the Arsenal CashBet ICO deal, it will not be long before you see clubs in partnerships with crypto businesses in Rugby League so it might not take that long before once fully commits to a blockchain based project.
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