Dear Premium Business Subscribers i welcome you to our Business Blockchain Section. Together we are going to take a deep look into how the blockchain can find application in various business models.
We will start by exploring the Sports Industry.
The 1st Football Club that jumped into the Cryptocurrency world was Arsenal FC.
More specifically Arsenal on January 2018 signed a sponsorship deal with the US cryptocurrency CashBet, which saw the Premier League club promote the firm’s initial coin offering (ICO) at the 60,000-seat Emirates stadium. The deal, the value of which was undisclosed, was the first time a major global sporting team had officially partnered with a cryptocurrency firm. (Source: The Guardian)
This was a first approach on a sponsorship level.
The 1st Cryptocurrency directly connected to Sports Funding is Globatalent (GBT).
Globatalent is the first blockchain sport exchange where you can tokenize, trade and support your favorite clubs and sports idols. Although contributing to a campaign is not the same as purchasing a product or betting, when you support a campaign, you help your favorite clubs and sports idols and be part of them participating in their benefits. (Source: Globatalent)
This is a second approach which focused on a crowd funding model. It is well known that Sports Clubs and Athletes have a large number of Fans.
This means that they can create their own financial ecocystems.
These ecosystems already exist in the form of Fan Clubs and in some cases loyalty reward systems through branded credit cards. Globatalent now gives the opportunity to Clubs and Athletes to issue their own cryptocurrencies and run their ICO through the Globatalent platform.
The Fans can now support their favorite clubs and athletes by buying tokens directly with their debit card in exchange of a future share of revenues or specific benefits. By acquiring the tokens the Fans do not have ownership rights a key factor that complies with the FIFA and UEFA TPO ban.
Some of the active campaigns on Globatalent include Football Clubs, Tennis Players, Basketball Academies and MMA Fighters!
This is a great case where blockchain comes in to disrupt the Sports Industry and empower young talents and athletes to self finance their career instead of being vulnerable to greedy managers that can take advantage of them. This was the main reason for the TPO (Third Party Ownership) Ban that came into action after numerous cases where managers bought players or even large stakes at Clubs.
Furthermore Sports Clubs can use the blockchain to finance the construction of their new stadium for example.
Globatalent is not the only way for Sports Clubs to invest in the Blockchain technology.
Some Football Clubs made a step further and launched their own ICO and cryptocurrency as well.
The 1st case was that of Avai Futebol Clube, a Series B soccer team in Brazil that generated its own cryptocurrency as part of an effort to develop a digital ecosystem for its fans, help it qualify for the top tier (Series A) of Brazilian soccer and the prestigious Copa Libertadores competition and to build up the team’s physical infrastructure. (Source: Coindesk)
On March 2019 several reports from Brazil mentioned that 5 more Clubs will be issuing their own cryptocurrencies.
As a conclusion we can say that Blockchain comes in to offer different solutions.
The first is the ability to create a new sports economy where Clubs become Banks or even States that can issue their own currency and distribute it to a wide audience.
This will be the case for many major Football and Basketball Clubs within the next two years. Clubs will be able to finance new infrastructure or even transfer costs by raising funds and without giving away any stocks.
Individual young athletes will be able to crowdfund their careers at early stages and avoid being controlled or manipulated by greedy agents.
Star athletes will compete with Clubs into creating their personal crypto economies. This will mainly apply for sports such as Boxing, MMA and Tennis. Football Players may face conflict with their Club tokens. This remains to be seen how it will play out.
Closing our 1st Blockchain Business analysis we can say that Blockchain will find wide application in Sports both team and individual.
If you are a Club Manager or Athlete who is interested to develop your own cryptocurrency or launch your Club/Personal ICO we are in position to help. You can contact us to arrange a call to discuss further details.
I hope you enjoyed our first analysis and i will see you soon for the next one!