Football clubs are embracing the revenue opportunity brought by the issuing of crypto tokens.
Fans purchasing these crypto tokens launched by their favourite clubs will gain benefits, such as the opportunity to vote on certain decisions about the club. This move has been celebrated by those fans attracted by the prospect of having exclusive access to their clubs. However, others have criticised clubs for further exploiting fans, many of whom lack the necessary understanding of cryptocurrencies to make informed decisions.
The use of crypto in the sports industry is not a new trend. In the first half of 2021, crypto brands spent over $107m on sports sponsorship agreements, according to GlobalData. In July, Patrick Kinch, Sport Analyst at GlobalData, said: “2021 is a landmark year for the cryptocurrency sector, with 49 new deals already secured this year between cryptocurrency brands and rights holders in the sports industry.” In the same month, Watford FC announced that their new shirt sponsorship deal would be paid in cryptocurrency. Scott Duxbury, the club chairman, told the BBC that Watford had an ‘ambitious outlook and commitment to innovation’. The use of other related technologies, including non-fungible tokens (NFTs), to further monetise fan engagement is likely, as football clubs attempt to revolutionise their revenue streams.
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