NBA Top Shot

How much money do NBA players earn from NBA Top Shot?

NBA Top Shot is a that NFT thing you may have heard floating around.

The NBA has dove headfirst into Non-Fungible Tokens with NBA Top Shot and has already shown significant potential to become a multi-million dollar business. The concept has the potential to benefit fans and it most-definitely will benefit the company that developed NBA Top Shot, the league, and all the NBA players that have been immortalized in Top Shot’s highlights. 

But how much do NBA players actually make off NBA Top Shot? 

As much of the details are locked in the contract between Dapper Labs, the NBA, and the National Basketball Players Association, the question isn’t easy to answer without access to that document. Not only that but the business is still evolving and there are no clear data around revenue-sharing.

We can, however, analyze the whole thing and make a rough estimation based on what information is out there.

How Does NBA Top Shot Work?

NBA Top Shot is a relatively new technology that many casual NBA fans are still not familiar with it. This is why we want to start by defining the concept and explaining how it really works. 

The official NBA website defines Top Shot as a blockchain-based platform that allows fans to buy, sell, and trade numbered versions of specific, officially licensed video highlights. To put it even simpler, NBA Top Shot is a digital marketplace where you can trade virtual basketball cards. Every card features a single player in glorious action or highlight, known as a moment. 

What makes NBA Top Shot unique is the fact that it’s based on blockchain technology and they have a legitimate partnership with the NBA.

It’s a new kind of decentralized data accumulation and protection that makes counterfeit and forgery pretty much impossible. Online gambling platforms are known for strong cybersecurity systems, so the $5 minimum deposit casino Canada and similar websites are hard to breach. The blockchain makes NBA Top Shot even more solid and it guarantees the normal functioning of the marketplace around the clock. 

Registered users can purchase basketball cards through the NBA Top Shot website, but there are also open marketplaces where owners can buy, sell, or exchange their cards. 

How much does NBA Top Shot cost? 

A typical NBA fan will now ask a logical question: How much does it cost to purchase a Top Shot moment? It’s a straightforward question, but the league decided to make it more interesting by setting all sorts of price tags. The price of NBA Top Shot moments depends on several variables:

  • The stardom of a given player. After all, it’s natural to make Kevin Durant’s highlights more expensive than Mason Plumlee’s. 
  • The quality of the moment. If you bump into the average three-pointer among Top Shot moments, it will probably be very affordable. But if you notice LeBron James’ stellar dunk, rest assured the price will skyrocket. 
  • The exclusiveness of a card. NBA Top Shot does not produce every card in the same amount, so rare samples may be more expensive than others. 

If you add all these elements to the calculation, you’ll get very different prices among Top Shot moments. 

For instance, the cheapest cards start at $9 and gradually grow all the way to $999. However, passionate card collectors are ready to pay much more for certain moments. For instance, if you want to buy Ja Morant’s dunk from December 2019, you would have to pay a staggering $250 thousand. But in case you find it a bit too expensive, we encourage you to play online casinos and deposit £5 get bonus spins on slots games. It’s not exactly a basketball-related game, but it’s definitely worth your time and money.

How much do players earn from NBA Top Shot? 

After everything is said and done, we can go back to the main question: How much do NBA players make off Top Shots? Let us be clear about one thing here – individual players do not make money when their own Top Shots are sold. The system actually relies on a totally different logic, so let’s dig deeper. 

NBA Top Shot is created by Dapper Labs and the company has a revenue-sharing agreement with the NBA and the NBPA. As of this moment, the rev-share agreement centers around the 5% transaction fee that’s charged every time an individual moment is sold on NBA Top Shot or or a third-party marketplace. 

That five percent is split three ways between Dapper Labs, the league, and the players’ organization. It doesn’t matter if it was a Devin Booker highlight or Andre Iguodala, when a moment is sold, the royalties don’t just go to that player, but that fraction of the percentage is split across the entire league.

The agreement that NBA Top Shot has with the NBA doesn’t differ much than the standard consumer product licensing agreements they have regarding items like jerseys and t-shirts. Any revenue coming from the licensing or usage of an active NBA player’s image falls under Intellectual Property (for example, a Malik Monk t-shirt) and whatever that percentage has been agreed upon will be shared with not just Monk, but every player in the league. That said, we don’t know what those percentages are and how they compare to the 5% that the league has with NBA Top Shot.

In short, this all means that every single NBA player shares in the revenue coming from NBA Top Shot and not just the players that sell highlights.

Even though moments are being sold at high prices and thousands of transactions are happening per day, the royalties cut between several hundred players is relatively small in terms of what type of investments NBA players usually involve themselves in.

For example, if the players’ cut is $50,000 each day in seller fees, they’re earning $111 per day or approximately $3000 per month when that $50,000 is divided by the league’s 450 or so players. That’s definitely not chump change for regular people (or even NBA players earning the league’s minimum).

That said, the NBA expects the market to grow to a mind-blowing $1 billion in the next few years. If this turns out to be true, the players can be making a lot of extra spending money on NBA Top Shot on top of their comfortable salaries, shoe deals, and business partnerships.

The bottom line

NBA Top Shot is currently not generating millions of dollars to individual players, but it shows great potential and many players consider it to be a promising investment opportunity. The numbers are to be revealed by the end of the year, but we already know that certain plays reach as much as $200,000 per card and it’s more than enough to convince a lot of us to jump into NBA Top Shot.

About the Author Leslie Alexander is a content lead and a full-time member of the Gamblizard team.  She is an expert in blogging and online casinos. Apart from content creation, Leslie enjoys traveling and long-distance running.

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