Vivek Randivé Plan for NBA 3.0 Starts With the Sacramento Kings Accepting Bitcoin Payments

Another NBA 3.0 effort by tech tycoon and team owner, Vivek Randivé.

Jan 18, 2014 at 2:09PM

Earlier in the year the Sacramento Kings were sold to Vivek Ranadivé, the technology mogul credited with digitizing Wall Street. Since then the Kings have infused what Ranadivé calls "NBA 3.0" into the Sleep Train arena and the fan experience. Perhaps the most revolutionary tech implementation is the team's acceptance of Bitcoin as payment, which has never been done before in pro sports.

A little background-The Bitcoin and complimentary fund processor Bitpay operate very similar to online pay service giant PayPal. The core difference is that Bitcoin funds do not need to be tied to a bank account or to an individual; in short it is a decentralized digital currency. PayPal on the other hand is a regulated financial institution that links funds to your bank account.

The rapidly growing BitCoin currently boasts a $289M daily transaction volume. It is important to note that PayPal fees are based on a percentage of sale whereas Bitpay charges a flat fee. This lower cost provides Kings the prospect to increase net revenue.

The Kings will allow tickets and merchandise to be purchased through BitCoin. A primary benefit to implementing this system is the virtual point of sale capabilities it creates. The Kings can track and monitor purchasing activity. After mining through this intelligent data, management can make more informed decisions on inventory, promotions, micro-target marketing, and customer relationship management efforts. When combining this knowledge with other trends in ticket and merchandise sales like dynamic pricing and paperless ticketing – the Kings are one step closer to Ranadivé's NBA 3.0 vision, which includes "using the franchise as a social network."

"We are maniacally focused on creating the most seamless experience for our fans in all facets," Ranadivé said in a team official statement. "A major tenet of the NBA 3.0 philosophy is about utilizing technology for the betterment of the fan experience, and this is another step in that process."

The potential customer relationship management, or CRM, opportunities that come with Bitcoin also bring forth some complications. The most glaring is the collective bargaining agreement's uncertain classification of revenue when it comes to payment systems like Bitcoin. NBA teams operate under the auspices of revenue sharing. In short, according to an elaborate formula and in the spirit of maintaining competitive balance, money is moved from the wealthiest teams to the neediest. Certain revenue streams are identified as either locally or nationally earned. For example, revenue generated by the sale of licensed products in the home arena, team-owned retail outlets, and on the team website is captured as local revenue. While, revenue generated by the sale of licensed products in all other locations is captured by the league and treated as national revenue.

Digital payments, like that of Bitcoin, blur the lines of distinction for local or national revenue. This is an important development because under the new collective bargaining agreement, a focus is on the inclusion of locally generated dollars from large-revenue teams to be spread to low-revenue teams. Therefore, the question of what constitutes local revenue will reappear as hi-tech payment systems continue to evolve.

Aside from league concerns, Sacramento fans are responding to the franchise's improvement efforts. Last month the King's sellout crowd set a world record for the loudest sound produced indoors. It seems the advancements Ranadivé has implemented have reinvigorated the Kings fan base. Some reports claim, he is currently exploring the in-game use of Google Glass by members of the coaching staff. Regardless of what comes next, these changes are sure to be hot topics in 2014 and closely followed industry trends.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information