UK Law and Practice Contributed by: Alistair McHenry, Sofia Antipatis and Rebecca Dods, Tyr
sports, aimed at strengthening financial sustainability, improving governance capability and attracting pri - vate capital. Investment in community facilities is also a priority. Government funding through the Multi-Sport Grass - roots Facilities Programme and the FA’s Future Facili - ties Fund support the creation of improved, accessi - ble, female-friendly spaces to meet rising participation demand. 9. Esports 9.1 Development and Growth of Esports Esports in the UK has grown rapidly from a niche activity into a mainstream entertainment sector. Over the past decade, expansion has been driven by more watchable game design, low-cost global streaming, and strong online communities. Grassroots growth is particularly visible in education, where schools and colleges now run esports programmes – for example, the British Esports Student Championships hosted more than 7,000 competitors in 2024. Esports is increasingly seen as a viable career path, supported by professional salaries and lucrative prize pools. Traditional sport has also embraced esports and vir - tual sport. Premier League and EFL clubs now field official esports teams in EA SPORTS FC Pro, while motorsport has permanently integrated virtual rac - ing, with F1 teams continuing to invest in simulated (“sim”) racing academies. Major cities such as London and Manchester host international events and house leading publishers such as Riot Games, Twitch and FACEIT – cementing the UK’s position as a growing esports hub. 9.2 Key Trends and Notable Deals in Esports Key trends in esport include: • UK as a global host – London remains a leading host city, with major tournaments regularly held at The O2 and Wembley Stadium, while Sunder - land is emerging as a northern hub through a new purpose-built arena beside the National Esports Performance Campus, set to open in 2026.
• Evolving partnerships – Organisations are securing strategic investment aimed at long-term develop - ment. Recent examples include Fnatic’s partner - ship with Hivemind Capital to expand performance technology and international talent pipelines, Grid Finder’s six-figure funding round to support sim racing communities, and Team Delirium attracting backing from Tape London. • Global uncertainty – The IOC has cancelled the proposed 2027 Esports Olympic Games, perhaps hinting at a somewhat uncertain future.
10. NFTs, AI and the Metaverse 10.1 Non-Fungible Tokens (NFTs) The UK NFT Market
The UK NFT market has grown quickly but remains lightly regulated. NFTs act as unique digital certifi - cates tied to art, collectibles, or in game assets, yet historically, they existed in a legally grey area. This left creators and buyers exposed to risks such as tokenisation fraud, for instance, where NFTs were minted without permission. A major shift occurred in December 2025 when the Property (Digital Assets etc) Act received royal assent, formally recognising digital assets (including NFTs) as personal property. This provides clearer legal protection and signals the UK’s ambition to become a competitive and credible digital asset hub. Sports Organisations and NFT Use Sport has been an active adopter of NFTs. Nike was the top-earning commercial brand in 2025, generating around USD185.3 million from over 67,000 NFT trans - actions, demonstrating strong crossover between sports fandom and digital collectibles. However, volatility remains: Nike faced litigation over claims its RTFKT NFTs were “unregistered securities”, later sell - ing the business in early 2026, marking a step back
from NFT-heavy strategies. Opportunities and Risks
NFTs still offer creative and commercial potential. A notable example is a 12-year-old London artist who earned nearly GBP300,000 from whale-themed NFTs. However, the risks are substantial: by 2025, 96% of NFT collections were considered “dead”. UK MPs
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